The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

E1BINDEX 10/28/2009 13:23:43 Page 395

Social responsibility

banking and investment banking,

147–149

and breakdown of U.S. financial system,

133–135

business ethics, 144–150

and change, 151, 152

civility, 137–140

and elements of riba-free economic

system, 142–144, 251

ethical behavior, 135–137, 199

and founding of LARIBA, 152

ideal faith-based society, 140, 141

and impact of teachings of Prophet

Muhammad (pp), 141, 142

Judeo-Christian-Islamic value system,

137–142, 197, 199, 200, 376–378

justice for all, 132, 138, 146

morality, 137–140

poor and needy, helping, 32–39, 143

Ten Golden Rules for an RF Banker,

150, 151

South Asian diminishing musharaka

Shari’aa-compliant banking model,

215–221, 268

S&P Islamic index, 366

Special purpose vehicles (SPVs), 56,

209–212, 218–220, 222, 238, 257,

263, 267, 268

Speculation, 105, 117, 118, 122, 145, 200,

371–373

Spending, excessive, 144

Staff

building, 305–307, 328, 329

training, 161, 166, 167, 172, 301, 308,

330, 335–337, 379

State banks, 156–159, 161

Stock and credit market collapse of

2008–2009, 98

Stock market investments

and bubbles, 103, 104, 110, 148

day trading, 134, 148

guidelines for, 364–366

margin financing, 104

normalization of stock market indexes,

366–368

risk calculation, 378

Student loans, 375, 378

Subprime lending, 3, 5, 336, 337

Success, 138, 201

Sukuk (bonds), 2, 207, 246, 359–363

T-accounts, 93, 94

Tarahum (fairness/kindness/mercy), 206,

259, 271, 276

Tax consequences

cost-plus transactions, 55, 56, 205, 206,

208, 209, 253

interest deduction, 268

Taylor rule, 99–101

Ten Golden Rules for an RF Banker, 150,

151

Time certificate of deposit (TCD), 315,

337–338, 340, 344, 349–352, 358

Title to property

milk ul raqabah (right to own title to

property), 215, 260, 261

Shari’aa-based finance model, 230, 253,

260–262, 268, 275

Torah, 13, 16–18, 21–23, 29, 31, 32

Training

Bank of Whittier Open University, 304,

307, 331–337

board members, 161, 166

conventional bankers, training on Is-

lamic banking, 242, 243, 254

fair lending laws, 172

HMDA, 174

importance of, 343

in-house, 304

on the job, 301

lending laws and regulations, 172

loan officers, 174

by Shari’aa scholars, 241

staff, 161, 166, 167, 172, 301, 308, 330,

335–337, 379

Transparency, 201, 257, 319

Trusts (waqf), 360–363

Truth in Lending Act, 178, 179, 210

Truth in Savings Act, 180

United Bank of Kuwait, 195, 196, 240,

255

University Bank, 196

USA Patriot Act, 181, 311, 334, 335

USA Today,239, 240

Index 395