Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes

Islamic banks in general employ murabahah-based structures to finance local and foreign trade transactions, albeit with a considerable level of inconvenience. Practical involvement in the field of Islamic banking would reveal that current equity structures, where implemented, comprise various areas...

Full description

Bibliographic Details
Main Author:	Sadique, Muhammad Abdurrahman
Format:	Conference or Workshop Item
Language:	English
Published:	2015
Subjects:	HG Finance HG1501 Banking KBP173.25 Islamic law and other disciplines or subjects KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. KBP639 Muʻāmalāt
Online Access:	http://irep.iium.edu.my/45295/ http://irep.iium.edu.my/45295/ http://irep.iium.edu.my/45295/1/45295.pdf

id	iium-45295
recordtype	eprints
spelling	iium-452952018-03-05T07:04:12Z http://irep.iium.edu.my/45295/ Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes Sadique, Muhammad Abdurrahman HG Finance HG1501 Banking KBP173.25 Islamic law and other disciplines or subjects KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. KBP639 Muʻāmalāt Islamic banks in general employ murabahah-based structures to finance local and foreign trade transactions, albeit with a considerable level of inconvenience. Practical involvement in the field of Islamic banking would reveal that current equity structures, where implemented, comprise various areas that call for a reassessment in the light of shari‘ah principles. Many equity formats in vogue embody features that inhibit them from optimum performance. Profit and loss distribution in equity ventures is a fundamental issue that determines the outcome of Islamic equity financing modes and the extent of influence they could exert on directing the flow of wealth. In some variations of equity investment adopted by Islamic banks, the profit loss sharing mechanism is found to be correlated to the period of the facility in some manner, through ensuring an association between the profit ratio and the duration of investment. The mechanism employed by Islamic banks in deciding the ratio of profit sharing may require further refinement. Structures employed for project financing through equity participation could be further enhanced to reflect the essential aspects that differentiate them from interest-based modes. 2015-08-16 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/45295/1/45295.pdf Sadique, Muhammad Abdurrahman (2015) Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes. In: Kuala Lumpur International Business, Economics and Law Conference 7 (KLIBEL 2015), 18th-19th April 2015, Kuala Lumpur. http://klibel.com/wp-content/uploads/2015/08/KLIBEL7_Law__42-formatted.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance HG1501 Banking KBP173.25 Islamic law and other disciplines or subjects KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. KBP639 Muʻāmalāt
spellingShingle	HG Finance HG1501 Banking KBP173.25 Islamic law and other disciplines or subjects KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. KBP639 Muʻāmalāt Sadique, Muhammad Abdurrahman Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
description	Islamic banks in general employ murabahah-based structures to finance local and foreign trade transactions, albeit with a considerable level of inconvenience. Practical involvement in the field of Islamic banking would reveal that current equity structures, where implemented, comprise various areas that call for a reassessment in the light of shari‘ah principles. Many equity formats in vogue embody features that inhibit them from optimum performance. Profit and loss distribution in equity ventures is a fundamental issue that determines the outcome of Islamic equity financing modes and the extent of influence they could exert on directing the flow of wealth. In some variations of equity investment adopted by Islamic banks, the profit loss sharing mechanism is found to be correlated to the period of the facility in some manner, through ensuring an association between the profit ratio and the duration of investment. The mechanism employed by Islamic banks in deciding the ratio of profit sharing may require further refinement. Structures employed for project financing through equity participation could be further enhanced to reflect the essential aspects that differentiate them from interest-based modes.
format	Conference or Workshop Item
author	Sadique, Muhammad Abdurrahman
author_facet	Sadique, Muhammad Abdurrahman
author_sort	Sadique, Muhammad Abdurrahman
title	Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
title_short	Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
title_full	Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
title_fullStr	Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
title_full_unstemmed	Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes
title_sort	bringing islamic banks closer to the ideal: from debt-based financing to equity-based modes
publishDate	2015
url	http://irep.iium.edu.my/45295/ http://irep.iium.edu.my/45295/ http://irep.iium.edu.my/45295/1/45295.pdf
first_indexed	2023-09-18T21:04:29Z
last_indexed	2023-09-18T21:04:29Z
_version_	1777410841806635008

Bringing Islamic banks closer to the ideal: from debt-based financing to equity-based modes

Similar Items