Islamic Banking: An Introduction and Overview

Hassan, M. Kabir; Lewis, Mervyn K.

doi:10.4337/9781847205414.00008

Cited by 25 publications

(25 citation statements)

References 14 publications

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“…Price of the acquired asset is an important determinant in murabahah contract agreement for the bank. The explanation for the notion comes from the existing literature where majority stated that the price of acquired asset are the fixed reference for setting margin, tenor, and the risk associated with the payment mode (Hassan & Lewis, 2007).…”

Section: Finding and Discussionmentioning

confidence: 99%

Contract agreement model for murabahah financing in Indonesia Islamic banking

Wulandari¹,

Putri²,

Kassim

et al. 2016

IMEFM

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Purpose The purpose of this paper is to measure the pattern of contract agreement process to map various banks’ position in perceiving Sharia conduct. This is done by incorporating the dynamics of culture, market demand and Sharia literacy in different banks. Finding of this research will serve as the formula to map the latent degree of Islamic bank’s commitment to their strategic vision and identity as an Islamic-based financial institution. Design/methodology/approach This research develops its theoretical background in classical and contemporary literature review on murabahah contract in Islamic perspective. Focus group discussion (FGD) and in-depth interview are conducted on 32 bankers (in 14 Islamic banks), two National Sharia Council, five academicians and three central bank representatives as an input for qualitative analysis. Content analysis is utilized in this paper to emphasize the process of discovering the relationship between dynamic factors affecting contract agreement process in murabahah scheme in Indonesian banking. Findings There are four dimensions affecting the contract agreement: fairness to customer, country regulation, perceived business practicality and product characteristic. The four dimensions are assumed to be influenced with categories proposed, as the category item is mostly repeated and is perceived to be significant in the participant’s perspective. Originality/value This research will be beneficial in mapping the determinant of degree of Sharia compliance in Sharia banking in Indonesia, focusing on the contract agreement process.

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Section: Finding and Discussionmentioning

confidence: 99%

Contract agreement model for murabahah financing in Indonesia Islamic banking

Wulandari¹,

Putri²,

Kassim

et al. 2016

IMEFM

View full text Add to dashboard Cite

show abstract

“…Islamic banking differs from conventional banking because financial systems based in Islamic tenets are dedicated to the elimination of the payment and a receipt of interest (Hassan and Lewis, 2007). Islamic banking activities first started in the 1970s, and since then, have expanded to become a distinctive and fast growing segment of international banking and capital markets.…”

Section: Bank Orientationmentioning

confidence: 99%

“…Islamic banking activities first started in the 1970s, and since then, have expanded to become a distinctive and fast growing segment of international banking and capital markets. There are currently over 200 Islamic banks operating in more than 70 countries worldwide (Hassan and Lewis, 2007).…”

Section: Bank Orientationmentioning

confidence: 99%

Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey

Ongena

Şendeniz-Yüncü

2011

Journal of Banking & Finance

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“…As such, the premise of Islamic banks' risks as opposed to conventional risks has been widely discussed in the Islamic finance literature. The philosophy and operations of Islamic financial institutions has been explained by Ahmed (2011), Hassan and Mahlknecht (2011), Hassan and Lewis (2007), El-Gamal (2000) among others. While other studies such as Hanif (2011) and Beck, Demirgüç-Kunt, and Merrouche (2013) have discussed in detail the different philosophies and operations of Islamic banks as opposed to conventional banks, some analyses have focused on risks in Islamic banking system operations (see How, Karim, & Verhoeven, 2005;Said, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Islamic Banks’ Risks: It’s Rating Methodology and Shariah Assessment Solutions

Radzi¹,

Lonik²

2016

JIBF

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The remarkable worldwide development of the Islamic finance industry and Islamic capital market has resulted in industry players demanding that Islamic banks be rated. Ratings will help them to assess whether a firm is utilizing the funds entrusted to it with due care, by providing indications of good performance so that informed decisions can be made. Since Islamic finance is recognized as being fundamentally different from conventional finance, a rating methodology is needed; one that can capture the unique dimensions of Islamic banks, in particular Shariah (Islamic law) risk. Therefore, this study will examine to what extent credit rating agencies, in particular standard and poor's, Fitch and Moody's differ in evaluating the creditworthiness of conventional and Islamic banks. Owing to Islamic banks' operations needing to comply with Shariah law, this study will further investigate the way to assess Shariah compliance from the perspective of Shariah scholars and practitioners. The research on ratings not only helps boost investor confidence in the Islamic finance industry, but also leads to a better understanding of the concept. This is despite the different methods adopted by the agencies concerned.

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Islamic Banking: An Introduction and Overview

Cited by 25 publications

References 14 publications

Contract agreement model for murabahah financing in Indonesia Islamic banking

Contract agreement model for murabahah financing in Indonesia Islamic banking

Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey

Islamic Banks’ Risks: It’s Rating Methodology and Shariah Assessment Solutions

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