Purpose: In this paper, we are going to consider assets and liabilities management (ALM) structure and instrument in Islamic banking. Since in Islamic banking depositors take partnership in benefits of the bank, so Islamic banking follows to maximizing benefits of beneficiaries and among them depositors. Therefore, there are dissimilarities between ALM approaches in Islamic banking and conventional banking. First, this dissimilarity comes from differences in the accounting system in Islamic banking in comparison to conventional banking. Secondly, usury illegalness and its related jurisprudence specifications indicate that time is not the solely the effective factor on increasing equity (deposited capital) return; but profit and loss sharing resulted from investment in the real economy sector is the essential base in monetary transactions. These two important factors are considerable factors in Islamic ALM. Design/methodology/approach: we consider influence specifications of these factors in two banking approaches for creating Economic Value Added (EVA). Findings: Comparison of financial indices for the two types of banking leads us that Islamic banking is more efficient than conventional banking.
Purpose This paper aims to define a new system for detecting money-laundering activities by comparing tax payments (especially value-added tax) data to banking transactions data. Design/methodology/approach A money laundering detection (MLD) system provides the necessary bases for detecting deception and fraud. Though MLD is a complementary system of the Rastin Banking system, it can also be installed and executed separately. Findings The underground economic activities can be detected and traced by comparing banking information and transaction information in MLD system. It needs to force the direct transactors or other related forms of transaction to perform their money operations through the banks. In the next step, the tax information of transactors (in a chain of transactions) can be compared with them, and the incompatibility of the two sets of data will explore money-laundering operations. Research limitations/implications This system is novel and needs to be more elaborate to remove further practical problems and specific cases. Practical implications MLD system provides necessary protection for those who perform legal economic activities by detecting financial criminals. Social implications Money laundering harms individual and public rights as well as economies. Financial crimes, tax evasion, smuggling, conspiracy, embezzlement and various other offences are included in the general definition of money laundering, so detecting them will lead to important economic improvements in the society as well as international community. Originality/value MLD system provides structural and electronic bases for computerized tax data and banking data comparison.
Mudarabah Financial Sharing (MFS) provides an opportunity for depositors to participate in commercial (buy and sell) projects. This method is a financial subsystem of Rastin Profit and Loss Sharing (PLS) banking system and in this connection, the instructions, organizations; working procedures, electronic bases, contracts and related forms are highly similar to Rastin PLS base system. The basis for determining rate of return in this kind of sharing is the yield rate in real sector economy and bank receives commission for providing capital management services for depositors as an agent or attorney, and works as an intermediary of funds to allocate depositor's funds into Mudarabah commercial activity of entrepreneur. Bank distributes the outcome of the project to depositors and agent/entrepreneur (Mudarib). MFS uses the financial innovations of "Mudarabah Certificate" and "Periodic Mudarabah Certificate". Depositor receives a Mudarabah Certificate when joins to a special Mudarabah project that can be transacted in Rastin Certificate Market. Profit or loss share is paid to the latest holder of certificate after the end of project. Profit share settlement between the Mudarabah Certificate holder and Mudarib (agent or entrepreneur of the project) will be based upon neoclassic theory of shares of factors of production, and specifically on the Euler theorem of income distribution.
Since conventional bonds include Riba (interest), they are not allowed to be used in the Central Banking under the Islamic economics system. By introducing various interest-free bonds for central bank, commercial banks, treasury and corporate entities in domestic and foreign currencies as substitutes for traditional bonds, this paper provides an Islamic financial innovations strategies which will be accomplishing the infrastructures for development of financial markets in both domestic as well as foreign financial markets. These asset-based papers have no pre-fixed interest coupons, and are based upon "loan equal to future debt" or, "debt equal to future loan" with "time-drawing right" which is handed to the other party and outlines the primary market. The secondary market has been designed based on information technology. Furthermore, these interest-free financial innovations include no-short pricing of the securities below its face value, and will substitute for traditional bonds and will stabilizing domestic and foreign exchange markets.Keywords: Bond, Islamic economy, Interest-free Central Banking IntroductionIn Islamic economics, the main functions of a central bank are to maintain price stability and prosperity of the whole humanity (Chapra, 1985). Although this system is indifferent from the conventional concept of central banking, the role of an Islamic central bank is to conduct its monetary operation by using Islamic monetary instruments that need to be free from interest, links with the business sector activities and giving value added into the economy (Mills and Presley, 1999).The main constraint of any instrument is that its operations must have a counterpart with the real project(s)/asset(s) in the real sector. From a conventional viewpoint, monetary contraction/expansion operations may not directly link with the real projects or business activities (Rabin, 2004). For instance, monetary contraction is done by selling central bank monetary instruments (securities) which do not need to have a counterpart or asset backed in the real www.ccsenet.org/ijef International Journal of Economics and Finance Vol. 3, No. 3; August 2011 Published by Canadian Center of Science and Education 235 sector. This contradiction is one of the main constraints of applying Islamic instruments in an interest-free central banking system.Islamic finance is gaining acceptance all over the world and is nowadays regarded as a serious competitor to "conventional finance". During the last three decades, Islamic banking matured into a viable alternative model of financial intermediation and gained credibility as witnessed by the establishment of a large number of Islamic financial institutions all over the world. A recent survey by Fadzlan (2007), states that more than 160 Islamic financial institutions exist around the world. Furthermore, several multinational banks started establishing Islamic branches and offering Islamic financial products all over the world.The Islamic financing activity is based on the Islamic...
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -International relations are involved in an undesirable order at the present time. It is emphatically necessary to propound firm principles to regulate the relationships among states and nations, and new laws and regulations are to be enacted at the international level. The purpose of this paper is to enumerate some of the main guide stones for development of Islamic thoughts in the fields of international humanities. Design/methodology/approach -The authors enumerate the principles of Sufi foundations of international relations in Islam by introducing the theosophical standpoints of Islamic Sufism. Findings -The paper introduces 95 principles in three categories of public international law, foreign policy, and diplomacy. Research limitations/implications -As long as the essence of all religions has a unique root which is their spiritual paths and understandings based on their mystical views. To popularize and internationalize this proposition, comparative researches in other religions' Gnosticism will be essential. Practical implications -Putting several principles forward, on the next phases, they can be used as the basis for many applied debates in the field and may be ended to a new international declaration/law. Social implications -Delicateness, truthfulness, and righteousness of Islamic Sufism, which is the gist of thoughts of humankind's elites who are divine messengers/guardians during millenaries, may turn the attentions of scholars and researchers to this viewpoint, and consequently a new set of thoughts/doctrines for regulating international relations to be defined and codified. Originality/value -International relations scholars have not touched the topic from a Sufi point of view. This paper brings this approach to a new challenging arena for those who are engaged in international relations related subjects of laws, politics, institutions, and organizations.
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