Ayesha Bhatti, Saad Azmat

Rethinking Islamic Finance (eBook, PDF)

Markets, Regulations and Islamic Law

• Format: PDF

Produktbeschreibung

Islamic finance's phenomenal growth owes to the Shariah compliant nature of its financial instruments. Shariah forbids the charging of interest (Riba) and instead promulgates risk-sharing and trade-based modes of financing. The Islamic financial industry has been subject to both critique and admiration. Critics argue that Islamic instruments (bearing debt-based structures) differ from their conventional counterparts only in legal lexicon and not in economic impact. The admirers argue that such instruments, irrespective of wider economic implications, rigorously comply with 'juristically sound' Islamic principles.

This book aims to reconcile the above dispute. It argues that the financial impact of instruments is a consequence of the way they are priced and structured. The similarity in pricing and structures is an outcome not of the underlying Islamic financial modes but of the competitive environment in which Islamic instruments compete. Even risk-sharing and trade-based Islamic structures, if implemented in such an environment, would have a financial impact similar to that of conventional instruments.

This book has a wider appeal for both academic and non-academic audiences. It can complement undergraduate and graduate courses as an additional reading on the intricacies of Islamic financial instruments and markets. For PhD students, it would help identify future research areas. To non-academics, it offers a deeper understanding regarding the working of the Islamic finance industry.

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Produktdetails

• Verlag: Taylor & Francis eBooks
• Seitenzahl: 122
• Erscheinungstermin: 12. Dezember 2018
• Englisch
• ISBN-13: 9781317064091
• Artikelnr.: 54785402

Autorenporträt

Ayesha Bhatti is an Assistant Professor at the Lahore University of Management Sciences (LUMS), Lahore, Pakistan. She is a Fellow of the Institute of Chartered Accountants of England and Wales and completed her master's degree in Applied Statistics from the University of Oxford, UK. Ayesha has been associated with the LUMS Centre for Islamic Finance since its inception in 2015 and has served as the Director of Training and Chair of the Centre. She teaches in the area of Financial and Managerial Accounting at LUMS and has written and taught several case studies in this area as well as on Islamic finance.

Saad Azmat is an Associate Professor of Finance at the Lahore University of Management Sciences (LUMS), Lahore, Pakistan. He completed his PhD in Accounting and Finance at Monash University, Australia and a master's degree in Economics from University of British Columbia, Canada. At LUMS he has served as the Associate Dean of Research, Director of PhD Program, and the Founding Chair of the Centre for Islamic Finance. He teaches courses in the area of Islamic Banking and Finance to undergraduate, master's and PhD students at LUMS.

Inhaltsangabe

Acknowledgments
Preface
Chapter 1: Introduction
Chapter 2: The Paradox of Risk Sharing
2.1 Introduction
2.2 Islamic Instruments
2.3 The Dominance of Debt Based Contracts
2.4 Concluding Remarks
Chapter 3: Freedom From Interest
3.1 Introduction
3.2 Islamic Instrument Structures
3.3 Convergence of Conventional and Islamic Banking Rates
3.4 Concluding Remarks
Chapter 4: Financial Crisis and Islamic Finance
4.1 Introduction
4.2 Islamic Banking, Financial Intermediation, and Risk Sharing
4.3 Implications During Financial Crisis
4.4 Concluding Remarks
Chapter 5: The Little Difference Between Sukuk and Bonds
5.1 Introduction
5.2 Sukuk Structures
5.3 Determinants of Credit Ratings of Islamic Bonds
5.4 Concluding Remarks
Chapter 6: Issuer's Choice of Islamic Bond Type
6.1 Introduction
6.2 Islamic Bond Structures
6.3 Theories of Capital Structure
6.4 Implications for Islamic Financing Choices
6.5 Concluding Remarks
Chapter 7: Risk in Risk Sharing Sukuk
7.1 Introduction
7.2 Credit Risk in Risk Sharing Bonds
7.3 Structural Credit Risk Models
7.4 Concluding Remarks
Chapter 8: The Challenge of Shariah Compliance
8.1 Introduction
8.2 The Complexity of Shariah Compliant Structures
8.3 The Agency Problem in Islamic Banks
8.4 The Shariah Certification Dilemma
8.5 The Role of the Regulator and Shariah Conscious Investor
8.6 Concluding Remarks
Chapter 9: Replicating Conventional Finance
9.1 Introduction
9.2 Instrument Structures
9.3 Behavioral Explanations
9.4 Implications for Investor Preferences
9.5 Concluding Remarks
Chapter 10: Can Islamic Banks Have Their Own Benchmark?
10.1 Introduction
10.2 Islamic Interbank Benchmark Rate (IIBR)
10.3 IIBR-LIBOR Benchmark Rates and Convergence
10.4 Determinants of the 'Piety Premium'
10.5 Empirical Analysis
10.6 Conclusion
Chapter 11: Islamic Versus Conventional Equities
11.1 Introduction
11.2 The Structure of Islamic Equities
11.3 Diversification Benefits
11.4 The Performance of Islamic Equities
11.5 A Theoretical and Empirical Perspective
11.6 Concluding Remarks
Chapter 12: Charity in Islamic Banks - A Distinguishing Feature?
12.1 Introduction
12.2 Penalty Versus Charity
12.3 The Size of the Charity Pie
12.4 Charity Contribution Versus Asset Size
12.5 Social Distribution of Charity
12.6 Concluding Remarks
Chapter 13: Rethinking Islamic Finance: The Limits of Our Understanding
13.1 Introduction
13.2 Pillars of Islamic Economics
13.3 Barriers to Understanding Islamic Finance
13.4 Concluding Remarks
Chapter 14: Rethinking Islamic Finance: An Ethical Perspective
14.1 Introduction
14.2 Rethinking Islamic Finance - An Ethical Framework
14.3 Integrative Social Contract Theory
14.4 Rethinking Islamic Finance Through ISCT
14.5 Way Forward
14.6 Concluding Remarks
Chapter 15: Conclusion
Bibliography
Index