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Promising discernibility of tawarruq deposit product

Promising discernibility of tawarruq deposit product By Dr Hanudin Amin Tawarruq is a two sale and purchase contracts. The first sale consists of the sale of an article by a seller to a buyer on a deferred basis. The second sale occurs as the buyer of the first sale resells the same article to a third party for liquidity purposes.        One of the significant products emanated from tawarruq is deposit product. The deposit product is of two types. One is a transaction that involves a transfer of funds to another party for safekeeping while...

Dr Hanudin Amin | September 27, 2017

Promising discernibility of tawarruq deposit product

Promising discernibility of tawarruq deposit product

Promising discernibility of tawarruq deposit product By Dr Hanudin Amin Tawarruq is a two sale and purchase contracts. The first sale consists of the sale of an article by a seller to a buyer on a deferred basis. The second sale occurs as the buyer of the first sale resells the same article to a third party for liquidity purposes.        One of the significant products emanated from tawarruq is deposit product. The deposit product is of two types. One is a transaction that involves a transfer of funds to another party for safekeeping while...

Dr Hanudin Amin | September 27, 2017

So You Want to Change the World?

  So did I, 25 years ago. I still do. A few years after graduating, I was fortunate to find myself in a discipline where I genuinely could make a difference. Islamic finance – or more precisely the Islamic economic model - has the power to revolutionise the way people do business, to democratise capital in a way that can restructure society, and reduce the gap between rich and poor.When people ask me in a professional context what’s my motivation, I tell them it’s to change the industry so that its ideals can be achieved. And although that’s an easy thing to s...

Harris Irfan | September 18, 2017

So You Want to Change the World?

So You Want to Change the World?

  So did I, 25 years ago. I still do. A few years after graduating, I was fortunate to find myself in a discipline where I genuinely could make a difference. Islamic finance – or more precisely the Islamic economic model - has the power to revolutionise the way people do business, to democratise capital in a way that can restructure society, and reduce the gap between rich and poor.When people ask me in a professional context what’s my motivation, I tell them it’s to change the industry so that its ideals can be achieved. And although that’s an easy thing to s...

Harris Irfan | September 18, 2017

Duty of Care in Islamic Finance

Once again, I would like to thank you all for returning to this page. Your continuing feedback and support is a great blessing and is always appreciated. I would also like to thank all those of you who have followed me in the last couple of months in this media. It appears that retirement does have its attractions!This month I wanted to focus our attention on the responsibility of “A Duty of Care.” This Duty, which first attracted me to Islam and Islamic Finance more than a quarter of a century ago, remains a top priority for me. The major part of what I am doing in my retireme...

Daud Vicary | September 04, 2017

Duty of Care in Islamic Finance

Duty of Care in Islamic Finance

Once again, I would like to thank you all for returning to this page. Your continuing feedback and support is a great blessing and is always appreciated. I would also like to thank all those of you who have followed me in the last couple of months in this media. It appears that retirement does have its attractions!This month I wanted to focus our attention on the responsibility of “A Duty of Care.” This Duty, which first attracted me to Islam and Islamic Finance more than a quarter of a century ago, remains a top priority for me. The major part of what I am doing in my retireme...

Daud Vicary | September 04, 2017

Credit Risks in Islamic Banking - Part 1

There is no doubt that the concept of risk was well known to ancient societies. Even in financial decisions, there is no doubt that people knew very well that lending to someone who is bankrupt has a high probability of losing your money as compared to a good standing debtor. Nevertheless, risk became an important tool of decision making when it becomes possible to measure risk and to assign values to different situations I select the best possible one. Therefore, I didn’t claim in this article that our forefathers didn’t know the concept of risk. Nor that they didn’t...

Mohamed Elgari | August 26, 2017

Credit Risks in Islamic Banking - Part 1

Credit Risks in Islamic Banking - Part 1

There is no doubt that the concept of risk was well known to ancient societies. Even in financial decisions, there is no doubt that people knew very well that lending to someone who is bankrupt has a high probability of losing your money as compared to a good standing debtor. Nevertheless, risk became an important tool of decision making when it becomes possible to measure risk and to assign values to different situations I select the best possible one. Therefore, I didn’t claim in this article that our forefathers didn’t know the concept of risk. Nor that they didn’t...

Mohamed Elgari | August 26, 2017

Ethical and Responsible Finance - Moving Forward

Once again, I would like to thank you all for returning to this page. Your continuing feedback and support is a great blessing and is much appreciated. I would also like to thank all those of you who reached out to me on my retirement from INCEIF at the end of June, your messages of support mean a great deal to me.And so, it goes. Well the first few weeks of retirement have been interesting. Busy, varied and on occasions not entirely what I had expected. The challenge, for me, is getting into a new routine that allows me to be as productive and effective as when I was working full time. So...

Daud Vicary | July 29, 2017

Ethical and Responsible Finance - Moving Forward

Ethical and Responsible Finance - Moving Forward

Once again, I would like to thank you all for returning to this page. Your continuing feedback and support is a great blessing and is much appreciated. I would also like to thank all those of you who reached out to me on my retirement from INCEIF at the end of June, your messages of support mean a great deal to me.And so, it goes. Well the first few weeks of retirement have been interesting. Busy, varied and on occasions not entirely what I had expected. The challenge, for me, is getting into a new routine that allows me to be as productive and effective as when I was working full time. So...

Daud Vicary | July 29, 2017

World Bank Survey: Islamic Finance and Infrastructure Funding

OverviewIslamic finance and infrastructure funding are, in principle, highly compatible. In numerous ways, infrastructure finance – with its focus on social benefit, grounding in the “real economy’, and linkages to tangible assets – captures the core spirit of Islamic finance. Take the World Bank survey to help us understand how practitioners view the application of Islamic finance to infrastructure funding The conceptual match between Islamic finance and infrastructure funding is clear. In practice, important breakthroughs and milestones have been achieved in...

Aamir A. Rehman | July 29, 2017

World Bank Survey: Islamic Finance and Infrastructure Funding

World Bank Survey: Islamic Finance and Infrastructure Funding

OverviewIslamic finance and infrastructure funding are, in principle, highly compatible. In numerous ways, infrastructure finance – with its focus on social benefit, grounding in the “real economy’, and linkages to tangible assets – captures the core spirit of Islamic finance. Take the World Bank survey to help us understand how practitioners view the application of Islamic finance to infrastructure funding The conceptual match between Islamic finance and infrastructure funding is clear. In practice, important breakthroughs and milestones have been achieved in...

Aamir A. Rehman | July 29, 2017

Thomas Jefferson’s “Life, Liberty, and the Pursuit of Happiness” based on the Maqasid al Sharia (Goals of Sharia).

As I have begun working on the creation of a Central Islamic Finance Council for the United States Islamic finance industry, some of my professional colleagues have been critical, sending me messages including the following:“My initial reaction is that this is not a good fit for us. We are not in the midst of an environment in which Islamic finance would be a draw for us.”“I note that the goal is to establish a world without interest, and you must realize that not everyone is going to buy into that ideal or value proposition.”I chose to include these responses in...

Obeid Ruff | July 20, 2017

Thomas Jefferson’s “Life, Liberty, and the Pursuit of Happiness” based on the Maqasid al Sharia (Goals of Sharia).

Thomas Jefferson’s “Life, Liberty, and the Pursuit of Happiness” based on the Maqasid al Sharia (Goals of Sharia).

As I have begun working on the creation of a Central Islamic Finance Council for the United States Islamic finance industry, some of my professional colleagues have been critical, sending me messages including the following:“My initial reaction is that this is not a good fit for us. We are not in the midst of an environment in which Islamic finance would be a draw for us.”“I note that the goal is to establish a world without interest, and you must realize that not everyone is going to buy into that ideal or value proposition.”I chose to include these responses in...

Obeid Ruff | July 20, 2017

Shariah-Compliant Instruments of Microfinance

 Prohibition of riba, gharar, jahl, darar and other constraining norms in Islamic finance does not constitute an obstacle in building sound microfinance products. On the contrary, the need for Shariah compliance has led to considerable research into product development. While the conventional system provides for simple interest-based deposits, donations and loans, the Islamic financial system comprises an array of instruments for mobilization of funds, financing and for risk management. Instruments for Mobilization of FundsInstruments for mobilization of funds may be broadly divid...

Tariqullah Khan | June 30, 2017

Shariah-Compliant Instruments of Microfinance

Shariah-Compliant Instruments of Microfinance

 Prohibition of riba, gharar, jahl, darar and other constraining norms in Islamic finance does not constitute an obstacle in building sound microfinance products. On the contrary, the need for Shariah compliance has led to considerable research into product development. While the conventional system provides for simple interest-based deposits, donations and loans, the Islamic financial system comprises an array of instruments for mobilization of funds, financing and for risk management. Instruments for Mobilization of FundsInstruments for mobilization of funds may be broadly divid...

Tariqullah Khan | June 30, 2017

Will the Circle be Unbroken?

Once again, I would like to thank you all for returning to this page. Your continuing feedback is a great blessing and is much appreciated.As many of you will have heard, I shall be retiring from INCEIF shortly. This does not mean that I am retiring from Islamic Finance and Life in general. It does mean I shall be able to spend some more time with family and to reflect and act on some key focus areas with which I will still continue to be engaged. Make no mistake, I shall remain involved at INCEIF, but just in a different role.In many ways I am looking forward to the next phase of my life...

Daud Vicary | June 22, 2017

Will the Circle be Unbroken?

Will the Circle be Unbroken?

Once again, I would like to thank you all for returning to this page. Your continuing feedback is a great blessing and is much appreciated.As many of you will have heard, I shall be retiring from INCEIF shortly. This does not mean that I am retiring from Islamic Finance and Life in general. It does mean I shall be able to spend some more time with family and to reflect and act on some key focus areas with which I will still continue to be engaged. Make no mistake, I shall remain involved at INCEIF, but just in a different role.In many ways I am looking forward to the next phase of my life...

Daud Vicary | June 22, 2017

Islamic Finance Swimming Against the Tide

Can we consider the word "bank" a suitable name and therefore model before considering its application into Islamic finance?A little bit of a philosophical and historical question. The deficiencies that face Islamic finance nowadays are not a simple cyclical problem which impedes any economic phenomena but rather a structural problem coming from the origin of the practice.The practice of banking began from around 2000 years BC as simple tools to provide working capital for traders who carried goods between cities. Etymologically speaking, the word bank came from Old Italian "banca" wh...

Abdessamad Raghibi | June 05, 2017

Islamic Finance Swimming Against the Tide

Islamic Finance Swimming Against the Tide

Can we consider the word "bank" a suitable name and therefore model before considering its application into Islamic finance?A little bit of a philosophical and historical question. The deficiencies that face Islamic finance nowadays are not a simple cyclical problem which impedes any economic phenomena but rather a structural problem coming from the origin of the practice.The practice of banking began from around 2000 years BC as simple tools to provide working capital for traders who carried goods between cities. Etymologically speaking, the word bank came from Old Italian "banca" wh...

Abdessamad Raghibi | June 05, 2017