With the emergence of Islamic finance, legal precepts of
Banks as one of the important institutions in money market has an undeniable role for financing different plans like: productive, services and business. Now there are some problems for banks to finance themselves. Mortgage backed-securities are one of the prevalent ways of financing in the banks. It has a long history in the conventional banks. Designing and creating new financial instruments in the banks are possible now.
Conventional analysis explores the reasons of inflation in the Quantity Theory of Money, which describes the relation between Money and Prices. However, beside the QTM, there is another phenomenon which is responsible for high inflation i.e. the Inherent Gap. When a bank gives loan to a borrower, the borrower has to pay the principal amount plus interest rate, but the existing stock do not have enough money to pay back. This is because the banks create only the principal amount they don’t create the interest amount.
Financial development can be defined as the policies, factors, and the institutions that lead to the efficient intermediation and effective financial markets. A strong financial system offers risk diversification and effective capital allocation. The greater the financial development, the higher would be the mobilization of savings and its allocation to high return projects. Financial development can be measured by a number of factors including the depth, size, access, and soundness of financial system.
Since September 11, madrasas, Islamic schools, are often in the media but mostly for negative reasons. This paper, however, shows that madrasas are prominent providers of education in South Asia, especially for children with limited access to regular schools in
According to the financial press, firms with low leverage have lower distress risk due to their reduced exposure to the credit market, especially during credit crises. Compared to their conventional and socially responsible (SRI) counterparts, sharia compliant (SC) stocks are low-leverage stocks. Our hypothesis is that SC firms would be less sensitive to leverage risk and thus would be ideal for wealth preservation during declining market environment.
It is legal adjustment, one among some key determintants, which affects the rapid or slow develpment of Islamic banking in a particular region. Though sometimes this is neglected in the beginning of the initiation of Islamic banking, but, in turn, it will significantly affect the long run of the progress of Islamic banking. Islamic banking is a new business entity which is very exceptional to its conventional counterpart. Therefore this needs specific treatment from the legal point of view. The spesicific treatment or may be called also as legal incentive is unavoidable in some aspects.