Purpose This paper aims to provide an essential framework for establishing Shariah-compliant deposit insurance scheme, by reviewing the Shariah provisions concerning the available approaches for deposit guarantee, types of deposits in Islamic financial institutions and the permissible party to incur the cost of this guarantee. Design/methodology/approach This paper reviews the Fiqh rules and principles approved by the well-known Islamic Fiqh references, as well as the resolutions of International Islamic Fiqh Academy (IIFA) and Shariah standards issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and presents these resolutions and judgments in a modern applicable way. Findings This paper recommends that the Islamic scheme for deposit insurance should be established based on Takaful insurance principle, and this scheme must adopt fund segregation principle to comply with Shariah provisions for guarantee permissibility. Research limitations/implications The paper bridges the gap between theory and practice by highlighting how the proposed model can be initiated in practice, thus, it can influence public policy in countries with Islamic banking system. Originality/value This paper represents a significant contribution toward the establishment of a consensual Shariah-compliant Islamic deposit insurance model.
Purpose This paper aims to investigate the economic substance of Islamic banks’ transaction as perceived by the employees and regulators of banks and the effect of such substance on the need for special accounting standards for Islamic banks. If there is a distinctive “Islamic economic substance”, then special accounting practices may be necessary such as the standards of the Accounting and Auditing Organization for Islamic Financial Institutions. Design/methodology/approach A qualitative inquiry on one of the leading Islamic banks in the Middle East was conducted to investigate the economic substance of the bank’s main two transactions; the deposit system and Murabaha financing, as perceived by informants within one of the earliest Islamic banks and its regulators. Findings It is found that despite the belief that the transactions under examination were different from equivalents within conventional banking, practice within the bank was not consistent with such a belief. Informants largely perceived the economic reality of the investigated transaction as being not different from conventional banks’ transactions, and this would affect the need for special accounting and regulatory frameworks. Research limitations/implications This investigation is confined to informants working within one Islamic bank; their views and perceptions may not coincide with those working in other Islamic banks in the world. Practical implications The results of this investigation provide policy implications for Islamic banks, regulators and standards setters in regard to the need for special accounting standards for Islamic banks. Originality/value The paper is one of the first papers that uses a qualitative inquiry on the main transactions of Islamic banks and the related need for special accounting practices. The paper provides a new perspective on the debate over whether Islamic banking is genuinely innovative or is merely a replicate for conventional banking.
Bitcoin is an online communication system that facilitates the use of virtual currency, including electronic payments. This paper aims at analyzing the behavior of Bitcoin returns as a proposal for future currencies while making a comparison between Bitcoin and other conventional currencies.This paper uses quantitative approach to analyze the time series of Bitcoin and that of other conventional currencies during the period 2010-2018. It uses 1) a descriptive statistics for the weekly returns for Bitcoin which includes the mean, standard deviation, maximum value, minimum value, skewness, kurtosis, and Jarque-Bera normal distribution test statistics, and 2) duration dependence test on Bitcoin weekly returns by extracting the weekly returns for the Bitcoin that behave in irregular way of the general Bitcoin return level through autocorrelation regression, and taking the residuals for this regression as a time series for irregular returns. This paper has confirmed no empirical evidence for the existence of a speculative bubble in the Bitcoin values and returns. In addressing the question of whether Bitcoin can act as a reliable substitute for conventional currencies, the returns based analysis shows a huge difference between the behavior of Bitcoin returns from conventional currency returns when comparing both aspects of level and stability. The paper concluded that bitcoin is more an investment than a currency. This paper represents a significant contribution in the path of financial economics and financial risk management, and represents a contribution to the stability of the financial system around the world and mitigating financial crises.
An organization’s image and reputation are assets that are built up over time. Organizations seek to develop and maintain positive images in the minds of publics. The image of an organization can be threatened by crises, and this impacts the trust it has with its employees and customers. Trust declines when employees feel they are not informed properly, especially in times of crises when it is imperative to respond to the threat and where promptness is necessary. Communications help build or restore some level of trust. The case is also applicable on a social level where governments and the public should communicate effectively especially during crises. Two main issues will be discussed in this paper: First, the influence of culture on the practice of Crisis Communications (CC); and second, the factors that underpin the role of culture in CC. These issues are significant since they represent the characteristics and influence of the Arab culture in particular. This article contributes to the understanding of the significance of culture in CC for organizations operating in the Arab World. Keywords: Culture, reputation, standardization, crisis communications, organizations, crisis messages, Arab World.
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