Purpose -The purpose of this paper is to initially contribute the literature linking the global financial crisis and the Islamic finance model which is competent of playing down the severity and frequency of financial crises, by introducing the financial system based on sharing in the risk. It links credit expansion to the growth of the real economy by allowing credit primarily for the purchase of real goods and services which the seller owns and possesses, and the buyer wishes to take delivery. It also requires the creditor to bear the risk of default by prohibiting the sale of debt, thereby ensuring that he evaluates the risk more carefully. It is important for everyone's future that we study the current crisis in order to develop sustainable financial practices and in quest of a new business model based on sharing the profit and loss. Design/methodology/approach -The divergence approach is used for exploring possibilities and constraints of inherited situations by applying critical thinking and analysis through the published literature in Islamic finance. This is to create new understandings of international finance and using new banking business model towards better design solutions for the current global financial crisis and preventing more collapse in the future. Findings -A new business model for the banking system based on non-interest-based transactions but profit and loss sharing should be in practice at the financial system. The financial institutions should encourage business and trade activities that generate fair and legitimate profit. In Islamic finance, there is always a close link between financial flow and productivity. This intrinsic property of Islamic finance contributes towards insulating it from the potential risks resulting from excess leverage and speculative financial activities which are part of the root causes of the current financial crisis. Research limitations/implications -This paper is based on published research papers but does not include empirical investigation. Practical implications -The new business model based on Islamic finance principles will help in financing businesses by using alternative methods to the banking systems or as a different way to run our banking system. The Islamic finance system with proper checks and controls introduces greater discipline into the economy and links credit expansion to the growth of the real economy. Originality/value -The paper sheds new light on the relationship between the Islamic finance model and a new business model for the financial institutions to be used in order to think through how to prevent future financial collapses and make capital markets work more effectively.
Accountants and the accounting profession have always been users of information technology and the claim for enlarging levels of Information Technology/Information Systems (IT/IS) skills/knowledge in practitioners and accounting graduates is more powerful than ever. The use of Information Technology in support of business is widespread and becoming more so. Indeed, it is no longer possible to meet the expectations of users of financial and other business performance information without using Information Technology tools. Both academics and practitioners have recognised the value and importance of IT/IS in the achievement of success in the competitive business world and IT/IS skills/knowledge as being essential to longterm success for accountants. The challenges facing organisations now require the skills of a special kind of accountant, this research called the “Hybrid Accountant” (combining IT/IS competencies and mainstream accounting capabilities). A “hybrid” accountant blends different skills and knowledge of business management and information management. It is generally felt that today’s accounting education process fails to develop accountants who are able to serve in this type of demanding accountant.
Corporate Governance is a complex process through which the companies are directed and controlled. The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company. Moreover the overall success and failure of the banking system depends upon the corporate governance principles and procedures applied in the banks. There are various guidelines which together make up the combine code for the corporate governance policies in the bank. The fact that the corporate governance is different in financial sectors than that of the non-financial sectors is because that the financial firms pose greater risk to the economy than that of the non-financial firms. This study aims to present the corporate governance principles and policies in the banking organisations in UK with special emphasis on the role of the board in these banks. For this purpose the two banks selected as a case study are the Lloyd's bank and the Cooperative bank. The role and responsibilities of the board and the committees are explored and discussed in this research.
Events are highly resource intensive, and can have negative environmental consequences such as waste of water, energy and materials. Sustainable finance is critically important to ensure sustainable development by making responsible decisions during the planning, organisation and implementation of an event. Events should be hosted in an environmentally, socially and economically responsible way. Many international companies are making sustainable events an integral part of their tender process. Greening any event should reduce the negative environmental impact, but should also leave a positive and lasting legacy for the local community.
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