Topical Issues Related to the Formation of the Islamic Finance System: At the Intersection of Philosophy and Practice

2011 ◽  
Author(s):  
Magomet Yandiev
Keyword(s):  
Islamic Finance ◽  
Finance System

scholarly journals A study on Islamic finance as an approach for financial inclusion in India

Accounting ◽  
2021 ◽  
pp. 487-496 ◽  
Author(s):  
Taufeeque Ahmad Siddiqui ◽  
Mohammad Naushad ◽  
M.K. Ummer Farooque
Keyword(s):  
Discriminant Analysis ◽  
Financial System ◽  
The State ◽  
Financial Inclusion ◽  
Descriptive Statistics ◽  
Islamic Finance ◽  
Finance System ◽  
Financial Exclusion ◽  
And Gender

This paper endeavors to investigate whether the Islamic financial system can tackle the issue of financial exclusion in India or not. The present study has made an earnest attempt to explore the discriminating factors behind choosing of the institutes (conventional or Islamic), in decreasing order of their importance. Data for the study are collected from 635 respondents, who are customers of Islamic and traditional financial institutes. The area selected for the survey is the state of Kerala, which is considered as the Islamic finance hub in India. The data collected are analyzed by employing the discriminant analysis along with drawing inferences from descriptive statistics. The study finds various factors in descending order of their importance. The factors are type of employment, religion (Muslim/Non-Muslim), income and gender. These are discriminating factors for choosing particular institutes (conventional or Islamic). The study shows that Islamic finance system was chosen by those, particularly Muslims, who did not have good employment and sufficient income. Hence, it is recommended that extensive formal beginning of Islamic finance in India, will lead to higher financial inclusion, since generally the financially excluded individuals belong to the said segments of the society, furthermore, Islamic finance is highly fascinated by the mentioned groups, the planners should think accordingly. The study is novel in its’ approach as it evidently illustrates that Islamic financial system is chosen by those, who do not have good employment, Muslims and those who earn less. Thus, there should be extensive formal commencement of Islamic finance in India to kick off higher financial inclusion.

Islamic Financial Development and Economic Growth-- Empirical Evidence from United Arab Emirates

2014 ◽  
Vol 2 (3) ◽  
pp. 15 ◽  
Author(s):  
Mosab I. Tabash ◽  
Raj S. Dhankar
Keyword(s):  
Economic Growth ◽  
United Arab Emirates ◽  
Time Series Data ◽  
High Growth ◽  
Series Data ◽  
Islamic Finance ◽  
Growth Time ◽  
Islamic Banks ◽  
Finance System ◽  
The Relationship

This paper analyzes empirically the relationship between the development of Islamic finance system and growth of the economy in the United Arab Emirates (UAE). To document the relationship between development of Islamic finance and economic growth, time series data from 1990 to 2010 were used. We use Islamic banks’ financing credited to private sector through modes of financing as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), as proxies for real economic growth. For the analysis, the unit root test, cointegration test and Granger Causality tests were done. Our empirical results show that there is a strong positive association between Islamic banks’ financing and economic growth in the UAE, which reinforces the idea that a well-functioning banking system promotes economic growth. However, our results indicate that a causal relationship happens only in one direction, i.e., from Islamic banks’ financing to economic growth, which supports Schumpeter’s supply-leading theory. In this case, the development in the Islamic financial sector acts as supply, leading to transfer of resources from the traditional, low-growth sectors to the modern high-growth sectors, and to promote and stimulate an entrepreneurial response in these modern sectors. Furthermore, the results show that Islamic Banks’ financing has contributed to the increase of investment in UAE in the long term and in a positive way.

Financial inclusion and FinTech

2019 ◽  
Vol 12 (1) ◽  
pp. 24-42 ◽  
Author(s):  
Hasnan Baber
Keyword(s):  
World Bank ◽  
Design Methodology ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Financial Systems ◽  
Content Type ◽  
Future Studies ◽  
Finance System ◽  
The Difference ◽  
Using Data

Purpose Using data from World Bank and Global Islamic Finance Report, this paper aims to compare the performance of countries following Islamic and conventional finance system in terms of financial inclusion and FinTech. Design/methodology/approach Ten countries from both financial systems have been selected based on the presence of Islamic finance and conventional finance in the country. Data was analyzed from year 2011 to 2017 and keeping the former as base year to measure the change in the population fraction. Findings The findings found that Islamic finance countries are more inclusive in terms of financial inclusion and women are financially more empowered as compared to the counterpart. On the contrary, countries with conventional finance have a higher number of FinTech users. Research limitations/implications The difference between the performances of two systems in terms of financial inclusion is relatively small; therefore, future studies should incorporate more indicators for financial inclusion. Originality/value This study will be useful for understanding the nature of both financial systems, and the further research can be done to find the determinants of financial inclusion.

MENCIPTAKAN BANK SYARIAH YANG BERPIHAK

ALQALAM ◽  
2013 ◽  
Vol 30 (3) ◽  
pp. 473
Author(s):  
Efi Syarifudin
Keyword(s):  
Profit Sharing ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Competitive Condition ◽  
Financial Access ◽  
Finance System ◽  
Islamic Bank ◽  
Legal Contract ◽  
The People ◽  
National Constitution

Islamic banking has problems in determining its identities which are perceived variedly by the people. The profit sharing system and Islamic legal contract developed in Islamic finance are no longer perceived distinctively because they have been modified adjusting to the trends in common finance system. However, aspects that should have been the spirits (ruh) of Islamic finance can be systematically ruined in the merely profit-oriented infrastructure and business vision.             Muslim societies' problems should have been solved by the presence of Islamic banking. One of which is the problem of financial access far the have-nots. This can be constructed as a farm of support which acts as identities and cores of Islamic finance. A number of strategic steps offered in this paper are: 1. The purity of akad (contract) and the creation of togetherness; 2. Making humanity problems as the ultimate orientation, not the accumulation of capital- 3. Making use social modal, creating the environment of support through the development of norms and communal awareness in distributing risk as well as conducting continuous guidance.             Through those approaches and steps, Islamic banking is expected to have different identities from those of other finance systems. Therefore, togetherness and familyness (jama'ah wal ukhuwah) can constantly become the ultimate spirits in creating nation's welfare as written in article 33 of the National Constitution (UUD 194 5), and not through the individualistic competitive condition. Keyword: Islamic Bank, Partnership, Intermediation, Empowerment

scholarly journals Deteksi Dini Krisis Lewat Profit And Loss Sharing (PLS)

2020 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Khairul Umam Khudhori ◽  
Loni Hendri
Keyword(s):  
Financial Crisis ◽  
Early Warning ◽  
Financial Stability ◽  
Financial System ◽  
Islamic Finance ◽  
Finance System ◽  
Library Research

Abstract: Financial crisis is a danger that always haunts financial stability of every country. Islamic finance as the new comer also gets into this trouble. Fortunately, Islamic finance system is stronger than conventional facing the crisis. This strong may come from its principles that support it. This paper uses a library research to examine the PLS system and it benefits to financial stability. The finds of this paper are Islamic financial system is more stable than conventional one, and  PLS system can be used as the early warning of financial crisis. 

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