Articles
Causes and solutions for the stagnation of Islamic banking in Turkey
This paper aims to evaluate the root causes of stagnation of the Islamic banking sector in Turkey in three steps and proposes solutions and policy recommendations. First, global Islamic banking practices in terms of governance and instruments are summarised and compared with the Turkish experience. Second, the financial and efficiency ratios of Turkish Islamic banks (IBs) and conventional banks (CBs) are compared and analysed for the period 2005 to 2015. Finally, the long-term growth strategy of Turkish IBs is evaluated.
Challenges of developing a takāful retirement annuity plan in Malaysia
This paper aims to explore the challenges facing the development of a takÄful retirement annuity plan in Malaysia. It also aims at exploring a new platform to re-launch the same product after being withdrawn from the Malaysian annuity market a few years ago. The research adopts a qualitative approach to address the possible challenges hindering the development of a takÄful retirement annuity plan in Malaysia.
Fiqhī views on bayʿwa salaf and qarḍ-based Islamic banking deposit accounts in Malaysia
Purpose: Islamic banks are obliged to carry out transactions that only comply with Islamic commercial laws. Malaysia has been championing the Sharīʿah-based banking system, and so, continuous improvement on the compliance level of the institutions offering Islamic financial services is key to its global recognition in this industry. One of the issues that can affect deposit products is existence of a sale contract and loan facility in one transaction. Famous prophetic tradition prohibits this.
Purging of impure income: a comparative study of the existing purging methodologies
Purpose: The purpose of this paper is to study the concept of purging and present a comparative study of the existing purging methodologies prevailing in the market with a view to evolving a more effective method of capturing the entire impure income to be purged. Design/methodology/approach: To illustrate the present discussion, a case study of purging based on numerical examples has been included. The argument has also been supported with empirical data related to the universe of Sharīʿah-compliant stocks listed on Indian stock exchanges.
Proposal for a new Sharīʿah risk rating approach for Islamic banks
Customers of Islamic banking industry continue to be skeptical on Sharīʿah compliance of Islamic banks despite receiving fatwa from the competent authorities.