Islamic Finance

The work is an examination of Islamic banking and the role of interest in Muslim society.

The study provides insight into the financial and economic system of Jordan. Because Islamic banking is well-established in Jordan, the author decided that it was an excellent location for the study. Reference is made to Jordan Islamic Bank, which was classified in 1987 as the third largest Islamic bank in the world. Jordan was the place where the first collapse of an Islamic financial institution occurred. The rise of the Islamic Investment House and the factors that led to its breakdown are a major concern of this study.

This thesis examines aspects of the law of sales and establishes basic rules for them, and aims to produce useful knowledge about how medieval jurists approached this subject matter. Certain transactions containing elements of risk, ignorance, uncertainty and ill-will in their structure were forbidden by the

The thesis sets up a basic model of what an Islamic bank might want to keep in mind while it assembles and maintains its financial portfolio, although one negative aspect of the model is that it tends to retard portfolio diversification. Banks may concurrently achieve the most desirable profit-sharing ratios and portfolio proportions if they consider certain guidelines and formulas.

Sudan is the focal point of this study which investigates the role of Islamic banks in economic and social development through theoretical analysis and empirical research. In Sudan, reliance on agricultural and small business allows the Sudanese Islamic banks to establish special services to develop these sectors. The Faisal Islamic Bank of Sudan is used as a case in point. The thesis seeks to provide a better understanding of ways in which Islamic banks can increase their effectiveness by providing guidelines on the various issues and how best to respond to them.

This work compares conventional and profit-sharing banking methods under three criteria: the degree of risk, the amount of collateral required by conventional banks to guarantee deposits, and the advantages accrued to a banking system that deals primarily with consumer (as opposed to income earning) clients. The thesis discusses the strategic advantage an Islamic bank has in this context, mostly due to the effect of Islamic laws and practices on the

The question posed in this study is whether the finance practices of the IDB conform with Islamic principles of finance and banking, as stated in the provisions of the IDB's charter. The author conducts an analysis of these activities focusing on the modes of financing adopted by the IDB to promote social and economic progress in member countries. Despite religious and economic commitments, the IDB's operations are not in accordance with the self-imposed guidelines stated in its charter.

There is debate over the extent to which a banking system can stimulate growth in developing economies. This thesis argues that various macro- and micro-level factors both create and inhibit financial deepening. The state, sources of capital, international financial institutions, and politics directly influence the structure and ability of banks to help promote growth. Iran is chosen as a case study due to its transformation from a traditional finance system and an entirely Islamic banking system.

This dissertation argues that conflicts between Islamic beliefs and Western banking practices are not necessary if financial institutions are created that correspond with the institutional structure of Saudi society. There are low levels of participation in the Saudi banking system because of the interest-based nature of most banking institutions. The Saudi banking system has a much higher share of bank deposits in non-interest (demand) deposits when compared to both advanced and developing countries.