Research in Corporate and Shari'ah Governance in the Muslim World


Book Description

Research in Corporate and Shari'ah Governance in the Muslim World: Theory and Practice aims to address a critical disciplinary gap between Islamic theory and the practice of the corporate sector in the Muslim World. Adopting a critical approach, the book sheds light on the impact of corporate governance on the economies of the Muslim world.










The Future of Economics


Book Description

This profound book is a powerful yet balanced critique of mainstream economics that makes a forceful plea for taking economics out of its secular and occident-centred cocoon. It presents an innovative and formidable case to re-link economics with moral and egalitarian concerns so as to harness the discipline in the service of humanity. M. Umer Chapra is ranked amongst the Top 50 Global Leaders in Islamic economics (ISLAMICA 500, 2015) and has been awarded with two prestigious awards for his contributions to the field: Islamic Development Bank Award for Islamic Economics (1989) and the King Faisal International Prize for Islamic Studies (1989).




Islamic Banking Regulation and Supervision


Book Description

The growing presence of Islamic banking needs to be accompanied by the development of effective regulation and supervision. This paper examines the results of the survey conducted by the International Monetary Fund to document international experiences and country practices related to legal and prudential frameworks governing Islamic banking activities. Although a number of countries have made considerable progress in creating legal, regulatory, and supervisory frameworks that accommodate Islamic banking, there are substantial differences. This paper also identifies a number of challenges faced by regulatory and supervisory agencies regarding Islamic banking.




Foundations of Shari'ah Governance of Islamic Banks


Book Description

A practical guide for robust sharī'ah governance of the Islamic banking industry Debate in the market on the extent of sharī'ah compliance of Islamic banks, their products, and activities has piqued stakeholders' interest. In Foundations of Sharī'ah Governance of Islamic Banks, Karim Ginena and Azhar Hamid explore the depths of sharī'ah governance to unravel its mysterious dimensions, and equip academics and practitioners with a solid understanding of the subject, which has become a serious challenge and thus deserves dedicated attention. The authors make a strong case for the need to contain the sharī'ah risk that Islamic banks experience, and present a compelling argument for how this should be done. Ginena and Hamid propose a robust sharī'ah governance model that comprehensively tackles thisrisk, and helps improve the extent of sharī'ah compliance of market players. The authors detail the internal, external, and institutional arrangements needed to promote responsible sharī'ah governance, and critically analyze current laws, regulations, and industry practices on the topic. The chapters of the book do the following: Examine the roots, characteristics and objectives of sharī'ah and its relation to financial dealings; Probe the role of regulators in sharī'ah governance, explore the different approaches adopted by banking supervisors, and provide examples of relevant legal and regulatory measures; Explain to bank directors and management the fiduciary duty they assume with respect to sharī'ah compliance, and detail how they could discharge this responsibility in line with best practices; Elaborate on the purpose of the Sharī'ah Supervisory Board (SSB), its responsibilities, competence criteria, internal regulations, and key governance guidelines; additionally, they explore different SSB models; Describe the internal sharī'ah control system including its six components, and examine the internal sharī'ah audit function as well as different stages of conducting a sharī'ah audit; Clarify the role of a sharī'ah auditor, with guidance on reporting lines, scope of duties, authority, and practical ways on fulfilling tasks, such as a sample sharī'ah risk assessment grid and audit checklists; Discuss the newly emerging external sharī'ah advisory firms that are expected to play a key role in the coming years and the services they provide. Through an effective treatment of each of these elements, and the way that they interact with one another, the book offers a fresh take on how robust sharī'ah governance of Islamic banks can be successfully accomplished. It is a comprehensive resource for academics, regulators, directors, lawyers, auditors, consultants, employees, and customers of Islamic banks interested in learning more about these challenges. This essential reading persuasively extends the discourse on the subject and addresses critical sharī'ah issues that have policy implications for decision makers in jurisdictions aiming to attract the fast-growing Islamic finance industry or increase their market share.




Corporate Governance in Institutions Offering Islamic Financial Services


Book Description

This paper reviews institutions offering Islamic financial services (IIFS) corporate governance challenges and suggests options to address them. It first points out the importance of corporate governance for IIFS, where it would require a distinct treatment from conventional corporate governance and highlights three cases of distress of IIFS. It then dwells on prevailing corporate governance arrangements addressing IIFS' needs to ensure the consistency of their operations with Islamic finance principles and the protection of the financial interests of a stakeholders' category, namely depositors holding unrestricted investment accounts. It raises the issues of independence, confidentiality, competence, consistency, and disclosure that may bear on pronouncements of consistency with Islamic finance principles. It also discusses the agency problem of depositors holding unrestricted investment accounts. The paper argues for a governance framework that combines internal and external arrangements and relies significantly on transparency and disclosure of market relevant information.




Islam and Secularism


Book Description

Written 40 years ago, Islam and Secularism is one of the most creative and original works of a Muslim thinker in the contemporary Muslim world. The author deals with fundamental problems faced by contemporary Muslims and provides real solutions, beginning with a discussion on 'The Contemporary Western Christian Background' in Chapter (I), followed by his analysis of the concepts (which he newly defines) of 'secular', 'secularization', and 'secularism' in Chapter (II). All this is then contrasted in Chapter (IV) of the book entitled 'Islam: The Concept of Religion and the Foundation of Ethics and Morality'. Based on all the preceding explanation, the author proceeds to analyze the Muslim 'dilemma' by declaring that it should be resolved primarily through what he calls the "dewesternization of knowledge" or, conversely, the "islamization of contemporary knowledge", an original concept conceived and elucidated by the author for the past five decades. Numerous original and profound ideas are contained in this book-arrived at chiefly through critical study of the Muslim tradition-such as the concepts of dīn, 'adl, ḥikmah, adab, ma'nā, and ta'dīb, and their significance in the development of an Islamic system of education. The rationale for the Islamization of contemporary knowledge and the establishment of a truly Islamic university was in fact provided for the first time in contemporary Muslim thought by this author long before the appearance of the present book, which explains these interconnected subjects more concisely. Further, the appendix entitled, 'On Islamization: The Case of the Malay-Indonesian Archipelago' is an actual explanation and application of the seminal ideas discussed in the book. This is a must-read for all Muslims and those concerned with the problems and effects of secularization in our world today. Islam and Secularism is a development of ideas contained in the many paragraphs of another book in Malay entitled: Risalah Untuk Kaum Muslimin, which the author wrote and completed during the first few months of 1974. Due to many circumstances which demanded the author's attention at home and ahmad, however, the Risalah has not yet been sent to the press. In this book, what is contained in Chapter III was composed and completed during the month of Ramaḍān of 1395 (1975), and delivered as a Lecture under the same title to the International Islamic Conference held in April 1976 at the Royal Commonwealth Society, London, in conjunction with the World of Islam Festival celebrated there that year. It was published as a monograph in the same year by the Muslim Youth Movement of Malaysia (ABIM), Kuala Lumpur, and in 1978 it appeared, together with other Lectures delivered on the same occasion by various Muslim scholars, in a book of one volume entitled: The Challenge of Islam, edited by Altaf Gauhar and published by the Islamic Council of Europe, London. All the other Chapters of the book were begun in March 1977 and completed in April of the same year, during my appointment as Visiting Scholar and Professor of Islamics at the Department of Religion, Temple University, Philadelphia, U.S.A., in the Winter and Spring of 1976-1977. What is contained in Chapter V was presented as a Paper entitled: "Preliminary Thoughts on the Nature of Knowledge and the Definition and Aims of Education", addressed to the First World Conference on Muslim Education held at Mecca in April 1977. It will appear, together with other selected Papers of the Conference, in a book entitled: Aims and Objectives of Islamic Education, edited with an introduction by the author and published by King Abdulaziz University and Hodder & Stoughton, London, 1979, as one of a series of seven books.




Multi-Country Report


Book Description

This background paper, which is a supplement to the board paper on “Ensuring Financial Stability in Countries with Islamic Banking (IB) Sectors”, presents country experiences with reforms to strengthen regulatory oversight of the IB sector. It reviews experiences with and the progress made in adapting prudential, safety nets and resolution frameworks to the specifics of IB. The selection of several countries from a range of regions with different levels of development and approaches to IB was designed to provide a representative sample of country experiences so as to enrich the policy conclusions. Such a multiplicity of experiences can help to identify common challenges that countries face in reforming their regulatory frameworks and to distill best practices. The countries, for which detailed case studies have been undertaken, are: Bahrain, Djibouti, Indonesia, Kenya, Kuwait, Malaysia, Nigeria, Pakistan, Sudan, Turkey and the United Kingdom.




Risk Analysis for Islamic Banks


Book Description

Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic world and is not restricted to Islamic countries, but is spreading wherever there is a sizable Muslim community. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past several years. The market's current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and is projected to hit the $100 billion mark by the turn of the century. Since the emergence of Islamic banks in the early 1970s, considerable research has been conducted, mainly focusing on the viability, design and operations of a deposit-accepting financial institution, which operates primarily on the basis of profit and loss partnerships rather than interest. This publication provides a comprehensive overview of topics related to the assessment, analysis, and management of various types of risks in the field of Islamic banking. It is an attempt to provide a high-level framework (aimed at non-specialist executives) attuned to the current realities of changing economies and Islamic financial markets. This approach emphasizes the accountability of key players in the corporate governance process in relation to the management of different dimensions of Islamic financial risk.