Islamic Banking and Finance

Description

This book provides a comprehensive presentation of topics, including the theoretical foundations, financial instruments, banking operations, risk management, takaful, and issues relating to the law, regulation and governance. It integrates mainstream and Islamic perspectives to provide students with real-world financial structures and examples.

• Marginal notes provide a snapshot view of the issues under discussion
• Provides comprehensive exposition of the subject, with specific examples suitable for the global market
• A Key Concepts section at the end of each chapter
• Real-world case studies provided in every chapter
• A web-based task is provided at the end of each chapter

About the Author(s)

Zubair Hasan, Professor of Islamic Economics and Finance at the Global University of Education in Islamic Finance (INCEIF)

Prof Dr Zubair Hasan is an economist and acclaimed author who has taught in the University of Delhi, and the International Islamic University of Malaysia. He joined INCEIF, the Global University of Education in Islamic Finance, as a Professor of Islamic Economics and Finance in 2008. He has published numerous articles, commentaries and book reviews in academic journals of repute on topics in economics and finance. In recognition of his numerous contributions, Prof. Dr. Hasan was awarded the prestigious Islamic Development Bank (IDB) Prize in Islamic Economics in 2009.

Table of Contents

Preface
Structure of the book
Acknowledgements
Contents
CHAPTER 1: INTRODUCTION TO ISLAMIC FINANCE
1.1 What is finance?
1.2 The significance of finance in modern economies
1.3 Money and economies
1.4 Money and prices
1.5 Islamic approach to finance
1.6 Why ban interest?
1.7 Overview: the origin and evolution of Islamic finance
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 2: MONEY CREATION AND CONTROL
2.1 What works as money?
2.2 Money supply: the principles
2.3 Methods of note issue
2.4 Fiscal policy and money supply
2.5 Credit (money) creation by banks
2.6 Central banks and credit control
2.7 The ailment and the cure
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 3: VALUE OF MONEY AND SOCIETY
3.1 Background
3.2 Inflation
3.3 Deflation
3.4 Islam and cyclical fluctuations
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 4: ISLAMIC FINANCE - THE BASICS
4.1 Islamic finance: why and for whom?
4.2 Objectives and principles of Islamic finance
4.3 Internationalization
4.4 The performance of Islamic banks
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 5: DIRECT MODES OF ISLAMIC FINANCE
5.1 Contracts and instruments
5.2 Participatory modes
5.3 Islamic requirements
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 6: INDIRECT MODES OF FINANCE
6.1 Direct and indirect modes
6.2 Murabahah
6.3 Leasing or ijarah
6.4 Salam
6.5 Istisna'a
6.6 Combining modes
6.7 The BBA structure
6.8 Tawarruq
6.9 Benevolent loan (Qard hasan)
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 7: INVESTMENT SUKUK - ISLAMIC BONDS
7.1 The origin and meaning of sukuk
7.2 Bonds, equity shares and sukuk
7.3 Structuring the sukuk
7.4 Sukuk across countries
7.5 Benchmarking
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 8: MODES OF SHORT-TERM FINANCING
8.1 Financial markets - introduction
8.2 Financial intermediation
8.3 Types of financial market and their role
8.4 The Islamic money market
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 9: LONG-TERM FINANCING: CAPITAL MARKETS
9.1 Islam and capital markets
9.2 Stock markets
9.3 Instruments for investment
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 10: RISK MANAGEMENT
10.1 Risk profit and finance
10.2 Islam and financial risks
10.3 Risk exposure and management
10.4 Risk management framework
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 11: TAKAFUL - ISLAMIC INSURANCE
11.1 Insurance: concepts and evolution
11.2 Basic principles
11.3 Islam and insurance
11.4 Takaful contracts and models
11.5 Finance risk valuation
11.6 Re-takaful
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
CHAPTER 12: LAW, REGULATION AND GOVERNANCE
12.1 Dominance of diversity
12.2 Regulations: need complexity and progress
12.3 The Basel Accords
12.4 Governance of Islamic Financial Institutions (IFIs)
Summary
Glossary
Key concepts
Case studies
Test questions
Web exercise
What next?
Index