Purpose
The aim of this paper is to argue analytically that interest and riba are not exactly the same and not an interchangeable terminology. There are similarities and differences between the two at the conceptual level.
Design/methodology/approach
To support the argument, the paper shows that it is possible to prove cases where the riba is involved but the interest is not. Hence, there is a situation of the presence of riba without interest. Furthermore, it is also possible to prove cases where the interest is involved but the riba is not. Hence, there is a situation of the presence of interest without riba. The notion and concept of interest in finance are analysed critically in comparison with riba in Islamic jurisprudence (fiqh Islami). So a comparative conceptual analysis is the main methodology of the paper.
Findings
The paper finally suggests that the correct expression should be that Islamic banking and finance is “a ribawi free of banking and finance” instead of “interest free of banking and finance” as it is popularised.
Research limitations/implications
The paper is conceptual in nature. No empirical analysis is pursued.
Practical implications
Islamic finance should not claim it self as interest-free finance, rather riba-free finance.
Social implications
It is more truthful to the society to say that Islamic finance is riba-free finance.
Originality/value
The paper is expected to contribute in the conceptual level of Islamic banking and finance’s understanding by clearing up the basic confusion and misconception about riba and interest. This would consequently minimise or even eliminate the taken-for-granted tendency of denoting the semantic of riba and interest as an interchangeable term, especially when writing in English and addressing the finance’s students and scholars. The semantic clarification between interest and riba hopefully becomes the main contribution of this paper.
The main subject of this paper is to discuss some issues in Minsky’s Financial Instability Hypothesis (FIH) and relate them with Islamic finance position in enhancing the stability of financial system. The methodology used in the paper is descriptive analysis. It describes a particular concept, namely the financial instability hypothesis and then analyses, applies and compares that concept with other concept, i.e. the Islamic finance concept. It is shown in the paper that Islamic finance, both in its commercial and social aspect, can play its role in stabilizing financial system. The significant contribution of the paper is by bringing together the hypothesis of Minsky with Islamic finance theory and practice. It should be stated here, however, that among the limitations of the paper is that the reference on Minsky’s point of view is mostly based on his brief article entitled “The Financial Instability Hypothesis” without referring to his vast writings on various topics directly or indirectly related to his notion of Financial Instability Hypothesis. Keywords: Financial stability, Islamic finance, Financial crisis, Deregulation, Riba, GhararJEL Classification: A12, E44, E58, G18, G21
Purpose
The purpose of this paper is to examine the level of web-based Online Financial Reporting Disclosure (OFRD) in Islamic banking in Oman.
Design/methodology/approach
A checklist was developed to measure the level of Web-based Online Financial Reporting Disclosure in Islamic banking consist of 70 items (Appendix). The sample of the study consists of Islamic banking in Oman.
Findings
The findings of the descriptive analysis indicated that the overall level of web-based online financial reporting disclosure was 69%.
Practical implications
The practical implication of the results are helping the authorities to put more efforts toward the quality of web-based online information to satisfy all parties.
Originality/value
To the best of the author’s knowledge, there is no similar research done to explore the level of web-based online financial reporting Disclosure (OFRD) in Islamic banking in Oman
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.