An Introduction to Islamic Finance: Theory and Practice

151 CHAPTER 8 Islamic Financial Intermediation and Banking and Banking F inancial intermediaries are different from other econom ...

152 AN INTRODUCTION TO ISLAMIC FINANCE which have changed the function of traditional fi nancial intermediation. However, the co ...

Islamic Financial Intermediation and Banking 153 principal amount in full and a predetermined return, an Islamic bank would not ...

154 AN INTRODUCTION TO ISLAMIC FINANCE to a predetermined ratio (typically 80:20 but may vary considerably from bank to bank). A ...

Islamic Financial Intermediation and Banking 155 level of risk. The bank considers these securities highly attractive and gives ...

156 AN INTRODUCTION TO ISLAMIC FINANCE through special investment accounts. For longer - term maturity investments, an Islamic b ...

Islamic Financial Intermediation and Banking 157 TABLE 8.4 Sources and application of funds Sources (liabilities and equity) App ...

158 AN INTRODUCTION TO ISLAMIC FINANCE a securitized market. First, as “originator” of the assets, they can become the main and ...

Islamic Financial Intermediation and Banking 159 Applying the agency theory to profi t/loss - sharing instruments such as mudara ...

160 AN INTRODUCTION TO ISLAMIC FINANCE creates an explicit mapping between the input and remuneration of capital, so that the ma ...

Islamic Financial Intermediation and Banking 161 TABLE 8.6 Contractual roles of an IFI and a conventional bank compared Contract ...

162 AN INTRODUCTION TO ISLAMIC FINANCE area of risk management, because the payment the entrepreneur has to make to the creditor ...

Islamic Financial Intermediation and Banking 163 savers and entrepreneurs, eliminating the risks faced by their conventional cou ...

164 AN INTRODUCTION TO ISLAMIC FINANCE versed in both Shari’ah matters and modern banking, means that many of these scholars sit ...

Islamic Financial Intermediation and Banking 165 THE ROLES AND FUNCTIONS OF THE FINANCIAL INTERMEDIARY ARE SUMMARIZED BELOW. ■ ( ...

166 AN INTRODUCTION TO ISLAMIC FINANCE Receivables and other assets 1,464,071 Property, plant and equipment 657,795 Goodwill 34, ...

Islamic Financial Intermediation and Banking 167 In fact, private Islamic banks as a group are becoming some of the largest priv ...

168 AN INTRODUCTION TO ISLAMIC FINANCE information and moral hazard. The banks are not willing to allocate their limited resourc ...

Islamic Financial Intermediation and Banking 169 and more akin to a universal bank. However, unlike conventional universal banks ...

170 AN INTRODUCTION TO ISLAMIC FINANCE and its benefi ts. Although this practice is conservative in its nature as assets are col ...