The author summarizes the development of Islamic financial institutions around the world, and talks about the rationale for and structure of Islamic banking. He then surveys the published literature on the subject. The recent increase in empirical studies is also discussed. A glossary of terms and an appendix of Islamic financial institutions outside Pakistan and Iran are provided.
Gold, minted for facility, was initially used as money. The goldsmith’s receipt of depositors’ coin was used as currency and was the precursor of paper money. Banks then issued bank notes and governments also issued notes, which they declared as legal tender. The paper money was gradually delinked from gold by all governments to adopt deficit financing. This triggered inflation, putting common welfare in jeopardy. However, it is the depreciation in the value of currency and not inflation which causes surge in prices.
The concentration of Thailand's Muslim population in the region near the Malaysian border has exposed it to the Malaysian banking system.
The author discusses how banking and insurance were reinterpreted by Muslim minds taking ethical aspects into consideration. The core idea behind
Kuwait Finance House (KFH) is emphasizing the fact that they have stringent procedures to prevent money laundering. The US is an integral market for KFH, and they are confident about doing well there. KFH has reported strong third quarter (Q3) results. The article details some of KFH's achievements and services.
The majority of Islamic banking customers at OCBC Bank (Malaysia) Berhad (about 78 percent) are non-Muslim. The bank aggressively promotes these products, and takes every opportunity to create better awareness.
For a transaction to be deemed properly completed according to the shari`a, some shari`a scholars are of the opinion that the already executed signature pages must be paper clipped in a certain way.
An interview with Ismail Dadabhoy, Executive Director, Islamic Finance, UBS Warburg in London. He highlights the role, achievements, and challenges of Western financial institutions in Islamic finance. The development of Islamic capital markets, the possibility of structuring an Islamic Repo, and the workings of Islamic finance in UBS are also discussed.
The merging of the assets of Dallah AlBaraka Group's (DBG) nine banking subsidiaries with Kuwait-based The International Investor Group to create the first regional Islamic financial services entity is an important move forward for the field of Islamic Finance. This merger, however, involves risks on both sides. The mechanics of the merger and its potential performance and knock-on effects are discussed.