An Introduction to Islamic Finance: Theory and Practice

130 AN INTRODUCTION TO ISLAMIC FINANCE by Shari’ah scholars, fi nancial derivatives as independent fi nancial contracts that can ...

The Islamic Financial System 131 the probability is high that primary securities in the Islamic system would be tied to the proj ...

132 AN INTRODUCTION TO ISLAMIC FINANCE a situation where money becomes more important as a repository of wealth than would be th ...

The Islamic Financial System 133 circumstances, the rate of return on an investment must, generally, be higher than the rate of ...

134 AN INTRODUCTION TO ISLAMIC FINANCE is not compensated by higher returns — savings will be adversely affected. This conclusio ...

The Islamic Financial System 135 STATEWIDE IMPLEMENTATION: LESSONS LEARNT The process of making the economic and fi nancial syst ...

136 AN INTRODUCTION TO ISLAMIC FINANCE perhaps, be far more important in the mobilization of savings in an Islamic system than i ...

137 CHAPTER 7 The Stability of the Islamic Financial System Financial Engineering 1 T he fi nancial crisis that began in August ...

138 AN INTRODUCTION TO ISLAMIC FINANCE that period fought to establish a banking system capable of preserving long- term fi nanc ...

The Stability of the Islamic Financial System 139 With the advent of the banking and credit system, the literature had noted dur ...

140 AN INTRODUCTION TO ISLAMIC FINANCE as a deposit in Bank 2. The process of money creation through the credit multiplier conti ...

The Stability of the Islamic Financial System 141 economy. The central bank plays a role as the lender of last resort. It will a ...

142 AN INTRODUCTION TO ISLAMIC FINANCE Proponents of the Islamic system claim that a fi nancial system based on the Islamic fram ...

The Stability of the Islamic Financial System 143 of an asset constitutes a portion of returns on that asset, the tendency is to ...

144 AN INTRODUCTION TO ISLAMIC FINANCE Inherent Matching of Assets and Liabilities A bank in a conventional interest - based sys ...

The Stability of the Islamic Financial System 145 the “two - windows” model discussed earlier. In the model, the banks accept de ...

146 AN INTRODUCTION TO ISLAMIC FINANCE stable and the rate of return to the fi nancial sector will be fully aligned with the pro ...

The Stability of the Islamic Financial System 147 cycles. Moderate and brief expansions and recession may be generated by good o ...

148 AN INTRODUCTION TO ISLAMIC FINANCE on a risk/profi t - sharing basis, with an overall rate of return which is positive and d ...

The Stability of the Islamic Financial System 149 effects. The unfair redistribution of wealth, at the expense of individuals on ...