| In this research, we discuss pertinent macro-perspectives and adopt a financial engineering approach to design financial products by blending the motives of compassion, profits and facilitation, that underlie respectively, the philanthropic, commercial and public sector activities. Financial contracts could be incentive compatible and effective if these three motivations are recognized and brought together. |
The paradigm of Islamic economics and finance is guided by the motivation of comprehensive human development (CHD) and its preservation as manifested in the objectives of Sharīʿah (maqāṣid al-Sharīʿah). However, the real world free-market economies are driven by the linear economy paradigm under the influence of Hotelling’s 1931 famous work concerning the economics of exploiting natural resources, in which, the ecological environment is not recognized as a resource. The global financial architecture is designed to protect and preserve the linear economic paradigm.
The theme of this editorial is inspired by the passing of a dear friend, Sulayman Nyang, whose life epitomized the nexus between scholarship and social engagement. Dr. Nyang’s life and career follows a long-held Islamic tradition stretching over a millennium. I would like to begin my reflections by citing the tradition of social engagement and social responsibility within Islamic scholarship, and then briefly examine how that tradition was upheld by Dr. Nyang and offer a synopsis of his thoughts and actions. © Author
Because of their opaque nature, SMEs are overly reliant on bank lending. Therefore, we examine whether banks' credit supply to SMEs are affected by their financial conditions. To this end, we employ a Granger causality analysis to examine whether there is an indication of a significant direction of determination between SME lending and non-performing SME loans. The results reveal no bidirectional relationship between SME lending and NPL for the entire banking sector.
This chapter sheds light on the contribution that al-Harith b. Asad al-Muhasibi may have played at the critical historical juncture for the development of Sufism by situating him in this critical milieu. It is noteworthy that the conceptualisations of “ascetics” and mystics” do not fit very comfortably with several figures of early Sufism.