Ignored Aspects of Islamic Banking and Finance

• Authors: Seyed Hadi Arabi

Abstracts

EN

Purpose: In the past several decades of Islamic banking and finance (IBF) activity in many countries, notable literature on this topic has been produced all over the world. By analyzing this IBF literature, this study investigates and highlights some ignored aspects of IBF activities. Design/Methodology: Academic IBF literature includes defending the plausibility of IBF as a part of Islamic economics; theoretical analysis regarding some advantages of IBF compared with conventional systems, suggesting some methods for performing IBF; and concentration on introducing financial instruments and innovations in Islamic financial markets. After reviewing them, they are classified as high ranking journal papers and graduate dissertations that were written on Islamic economics in I.R. Iran during the past three decades. Then they are analyzed via analytical methods and descriptive statistics to investigate the ignored aspects of IBF. Findings: Through this systemic study of Islamic banking, real and not skeletal adaptation of Islamic contracts, Islamic goals of Islamic economy, Islamic and ethical values, and justice and poverty reduction are some of the more important neglected aspects in IBF activities. Research Implications: Focusing on these areas in future research could improve the performance of IBF as part of the Islamic economic system and guide IBF activities to the real nature of Islam (Islamicity). Originality/Value: Besides reviewing and classifying the academic literature on IBF, the study is unique in focusing on the neglected aspects of IBF because it is very important and influential to distinguish IBF from non-IBF activities.

Keywords

EN

Islamic banking; aspects of Islamicity of IBF; ignored aspects of IBF

• Publisher: Akademia Leona Koźmińskiego
• Journal: Management and Business Administration. Central Europe
• Year: 2014
• Volume: 22
• Issue: 2
• Pages: 98-110

Dates

published

2014-06-15

Contributors

author

Seyed Hadi Arabi

• Research Institute of Hawzah and University

References

• Ahmad, A., Khan, T. and Iqbal, M. (1998). Challenges Facing Islamic Banking. Jeddah: Islamic Research And Training Institute, , 1998.
• Caplen, B. and Divanna, J. (24 November 2010). Top 500. The Banker. Islamic Financial Institution,
• Chapra, M. Umar (2000). The Future Economics: An Islamic Perspective. The Islamic Foundation.
• Iqbal, Z. and Tsubota, H. (2004). Emerging Islamic Capital Markets. Islamic Finance, the World Bank.
• Divanna, J. (7November2012). Islamic finance industry reaches critical mass. The Banker.
• Khan, M.S. (1987). Islamic Interest-Free Banking: A Theoretical Analysis. Theoretical Studies in Islamic Banking and Finance. The Institute for Research and Islamic Studies, Houston, Texas: 15–36.
• Nadeem Ul Haque, Abbas Mirakhor (1987a). Saving Behavior in an Economy Without Fixed Interest. Theoretical Studies in Islamic Banking and Finance. The Institute for Research and Islamic Studies, Houston, Texas: 125–140.
• Nadeem Ul Haque and Abbas, Mirakhor.( 1987b). Optimal Profit-Sharing Contracts and Investment in an Interest-Free Economy. Theoretical Studies in Islamic Banking and Finance. The Institute for Research and Islamic Studies. Houston, Texas.
• Optimal Profit-Sharing Contracts and Investment in an Interest-Free Economy (1987). Theoretical Studies in Islamic Banking and Finance. The Institute for Research and Islamic Studies, Houston, Texas: 141–162.
• Siddiqui, S.H. (2002). Islamic banking: true modes of financing. Journal of Islamic Banking & Finance, 19(1): 11–24.
• Waqar, M.K. (1987). Towards an Interest-Free Islamic Economic System. Theoretical Studies in Islamic Banking and Finance. The Institute for Research and Islamic Studies, Houston, Texas: 75–106.
• Ahmad Khorshid (1995). Studies in Islamic economics (transl. by Mohammad Javad Mahdavi, Mashhad). Islamic Research Foundation, Astan Quds Razavi, the Holy Shrine of Imam Reza (A.S.).
• Bojnourdi (1998). Collection of essays, ninth seminar on Islamic banking. Higher Institute for banking.
• Eyvazloo, Hossein, Meysami, Hossein (2008). Theoretical study of stability and efficiency of Islamic banking in comparison with conventional banking. Quarterly Journal of Islamic Economics, 31: 161–189.
• Ghaninejad, Musa (1996). The difference between usury and interest, the sixth conference on monetary policy and the currency. Tehran: Institute for Monetary and Banking.
• Kashani, Seyed Mahmoud (1997). Proceedings of the Eighth Seminar on Islamic Banking. Tehran: Higher Institute for Banking.
• Mohammad Hosse (2009). In: Moshref Javadi and Hamzeh Ghoochi Fard, Risk in Islamic banks and financial institutions; with an approach to legal risk, Commercial investigations of December and January, New Course, 7(38): 94–107.
• Mousavian, Seyed Abbas, Nazarpour, Mohammad Naghi, Kafshgare Jelodar, Hossein (2010). The role of the council of Islamic jurisprudence specialized in promoting the legitimacy and efficiency of Islamic banks (studying the experience of several countries). Quarterly Journal of Islamic Economics, 36: 59–88.
• Sanei, Yusof (2004). Jurisprudence and life, usury loans for productive purposes, Qom, Meysame Tammar publication.
• Soheyli, K. (2008). Theoretical comparison of efficiency of interest based and interest free banking in mobilization and allocation of resources. Journal of Islamic Economics, 1.
• Statistical reports by central bank of I.R. Iran in various years, http://www.cbi.ir.
• Abu Zeid and Mohamed Abdel Moneim (1981). Mudarabah and Its practical applications in Islamic banks. Cairo.
• Al Sadr and Mohammed Baqir (1401). Interest-free banking in Islam. Beirut.
• Hadi, Mohammed (1985). Usury and loan in Islamic jurisprudence. Cairo, Darul E'tessam.
• Mesri, Rafic Younes (2006). Totality in Islamic economics, Dar Al Maktabi.
• Rashid Rida, Seyed Mohamed (1406). Usury and transactions in Islam, Cairo, Dar al Ibne Zeydoun.
• Shaltout, Mahmoud (1995). Al Fatwa. Beirut, Dar Al Shargh.
• Siddiqui, Mohammad Nejatollah ( 2003). Al- Ghazaya Al- Moaserah fi al-Nogod va al-Bonok va Al-mosahemah fi Al-Sherakat ( Contemporary issues in money, banks and shareholding in companies ). Bank al islami al-tanmiah.
• Siddiqui, Mohammad Nejatollah, Contemporary issues in money, banks and shareholding in companies.
• Zarqa, Mustafa (1388 A.H.) Modern problems of Balance in Sharia. Journal of the Baath, Beirut.