Books : Islamic Capital Markets & Introduction to Islamic Banking & Finance

Author : Brian Kettell

ISBN: 978-0-9558351-1-7, 296 pages




Author : Brian Kettell

ISBN: 978-0-9558351-0-0, 251 pages











Islamic Capital Markets

All you ever need to know about Islamic capital markets. This is the world’s first ever book covering the fundamental principles underlying one of the most exciting financial markets.

Reading this book you will learn about capital markets where:

1.       Instruments traded are asset backed.

2.       Defaults are virtually unknown.

3.       A variety of new asset classes are emerging.

Contents of Islamic Capital Markets

Chapter 1. Muslim beliefs

Chapter 2. Sharia’a law and Sharia’a Boards: roles, responsibility and membership

Chapter 3. Conventional and Islamic financial intermediation

Chapter 4. Islamic capital markets and Islamic securitisation

Chapter 5. Islamic investment principles

Chapter 6. Sharia’a compliant wholesale markets

Chapter 7. Islamic funds, equities, indices and ETFs

Chapter 8. Derivatives and hedge funds in Islamic finance

–  Why are derivatives forbidden under Sharia’a law ?

–  Total returns swap and Sharia’a conversion technology

Chapter 9. Sukuk (Islamic bonds)

Chapter 10. Islamic real estate investment trusts

World’s 100 largest Islamic banks

Top 500 Islamic Financial Institutions
Introduction to Islamic Banking & Finance

An essential first read for anyone interested in Islamic banking, this book covers the principles of the world’s fastest growing financial sector. Reading this book you will learn about a banking system where: 

1.       Interest is forbidden.

2.       Derivatives are forbidden.

3.       Sub-prime mortgages are forbidden.

Contents of Introduction to Islamic Banking & Finance

Chapter 1. Muslim beliefs

Chapter 2. Sources of Sharia’a law: legal basis for Islamic banking

Chapter 3. Definition of Islamic banking 

Chapter 4. Murabaha as a mode of Islamic finance

Chapter 5. Mudaraba as a mode of Islamic finance

Chapter 6. Musharaka as a mode of Islamic finance

Chapter 7. Ijara as a mode of Islamic finance

Chapter 8. Istisna’a as a mode of Islamic finance

Chapter 9. Salam as a mode of Islamic finance

Chapter 10. Takaful: Islamic insurance

Chapter 11. Sharia’a law and Sharia’a boards: roles, responsibility and membership

Appendix 1. World’s 100 largest Islamic banks

Appendix 2. Top 500 Islamic Financial Institutions

Amana wins top global award for Islamic Finance in Sri Lanka

Amana Investments won the award for the category Best Islamic Bank in Sri Lanka in the 2009 Islamic Finance News Poll conducted by the Malaysian-based REDmoney Group, the company said. Though Amana Investments is not a bank (it has received provisional approval from the Central Bank), the award it has won in the category of the Best Islamic Bank by country confirms its clear leadership position in the field of Islamic Finance in Sri Lanka.

An Amana press release said the REDmoney Group publishes the leading and widely circulated Islamic Finance industry journal in the global finance sector that captures all the significant events and activities that take place in the field of Islamic financial services, including banking, insurance, stockbroking, fund management etc worldwide.

The Islamic Finance News Awards Polls are the most transparent, definitive and competitive awards in Islamic finance today and are based on a unique poll which is a true reflector of the global Islamic financial markets. Winners of the Islamic Finance News Poll received the prestigious awards at two special Awards Ceremonies, the first on February 25 in Kuala Lumpur, followed by another on March 8 in Dubai.

Commenting on the win, Mr. Faizal Salieh, Managing Director & CEO of Amana Investments, said, “We are honoured to be recognised internationally as the best Islamic Finance provider in Sri Lanka. This award acknowledges our present market leadership position and stature and the contribution we have made in the field of Islamic Finance in the country. It also puts Sri Lanka on the World map of Islamic finance and banking.” Amana Investments Ltd has pioneered Islamic Finance in the country since 1997.

source : sundaytime lk

Misys Sees Growth in Islamic Banking’s Global Market Drive Demand for Specialised Software Solutions

The rapid growth of the global Islamic banking market over the last five years has boosted the demand for specialised Islamic banking and finance software solutions, reports Misys plc (LSE: MSY), the global application software and services company. With the influx of mainstream banking institutions, particularly leading Western brands, into Islamic banking throughout the world, the support from specialist solution vendors has become a necessity to ensure a smooth transition to Shariah-based banking.

“Banks embarking on Islamic banking operations in key markets around the world are searching for partners with a thorough understanding of the sector and a proven track record in delivery,” states Samir Safa, Business Development Manager, Islamic Banking at Misys. “Islamic banking has opened new and exciting growth possibilities, but it remains a challenge for banking institutions to work within the Shariah-based banking system and adopt its distinct practices. The core banking technology used by financial institutions that operate in this market is essential for meeting local customers’ needs, regulatory reporting, operational requirements and Shariah boards’ approvals.”

Research from the analyst community estimates that the global Islamic banking market is now worth over USD 500 billion, with growth forecast of between 10 and 15 per cent during 2010. Samir Safa continues: “Misys has provided specialised services and software solutions for over two decades that have enabled banking institutions to maintain their competitive edge in this burgeoning market. Although the Middle East has in the past been the primary market for Islamic banking, we have been expanding our presence in other regions as the market grows globally. The experience and knowledge we have built from more than 25 years of delivering integrated, comprehensive solutions to customers puts us at the forefront of the marketplace.”

Misys provides its BankFusion Equation Islamic Banking and Finance solution for retail and corporate banking clients that helps them deliver robust and efficient products and services to their customers. The solution supports a wide range of Islamic Finance products, including Murabaha, Ijarah, Istisna, Musharaka and Al Tawarruq, together with fully automated Islamic Profit calculation and distribution. BankFusion Equation uses our revolutionary BankFusion platform to deliver re-usable components. This brings customers state-of-the art technology and unique flexibility, re-architecting Equation into a service-oriented environment.

Misys also offers a world-class Islamic treasury solution in Misys Opics Plus, a service-oriented, treasury and capital markets solution with unsurpassed STP and back-office capabilities. Misys Opics Plus is a comprehensive solution for front-to-back office, cross-asset processing of a wide range of financial instruments. The solution provides support for Commodity Murabaha (including Contributor Trades), Reverse Murabaha, Wakala Investment and Financing, Deposit Exchange, Sukuk, Al Tawarruq and FX spot.

The two systems are fully integrated for financial institutions that require total Islamic coverage (including operational window) to satisfy all the needs of their customers.

About Misys plc

Misys plc (LSE: MSY), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries. We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success.

In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world’s top 50 banks. In healthcare, Misys plc owns a controlling stake in NASDAQ-listed Allscripts-Misys Healthcare Solutions, Inc, a clear leader in the provision of healthcare technology, serving more than 150,000 physicians, 700 hospitals and nearly 7,000 post-acute and homecare organisations. Misys employs around 6,000 people who serve customers in more than 120 countries

source : Misys

Islamic finance rises on ruins of conventional banks

The Islamic finance industry, which refers to the banking activity conducted in accordance with the principles of Sharia (Islamic law), gained the limelight over the past two months during the global financial turmoil as one of the relatively safe havens for investments. Executives of Islamic banks and financial institutions have been arguing from the very beginning of the crisis that their businesses were relatively immune to the repercussions of the world financial turmoil because Islamic financial products were different from those inherent in the conventional banking system.

Islamic equities also turned out to be the least affected in the meltdown that swept global as well as Arab stock markets.

As a matter of principle, Islamic teachings reject taking interest on money loaned or deposited at banks and consider it as “Reba” (usury).

“There is no information so far indicating that any of the Islamic financial institutions has been exposed to the fallout of the world financial crisis,” former governor of the Central Bank of Jordan, Mohammad Nabulsi, told Deutsche Presse-Agentur dpa.

“However we believe that any Islamic financial institution will not be completely immune to the spillovers of the turmoil, because Islamic banks usually do have money deposited at foreign banks.

“At the same time, Islamic finances enjoy a type of immunity because they operate under strict legal restrictions and consequently barred from dealing with the conventional credit tools such as the real estate mortgage instruments,” he added, referring to the factors which sparked the financial crisis in the United States.

Nabulsi believed that several banking and other business institutions throughout the world could now be interested in exploiting these characteristics of the Islamic banking system particularly in their operations in Arab and Islamic countries.

“However, the credit crunch which currently grips the world financial system could limit the opportunities provided by Islamic institutions,” he said.

The Islamic finance system recorded a rapid growth over the past decade that has been fueled not only by surging demand for Sharia- compliant products from Muslim financiers but also by investors around the world, who have been moved by the system’s profitable prospects.

According to reliable sources in the Islamic financial industry, there are currently over 800 billion dollars’ worth of deposits and investments lodged in Islamic banks, mutual funds and insurance schemes known as “takaful,” more than five times the volume compared with 150 billion dollars in the mid-1990s.

Islamic financial institutions are reportedly expanding their balance sheets as demand continues to grow in Europe for financial products that avoid paying interest, in line with strict religious rules.

These products instead pay profits from an underlying business or rent from a building used as collateral to raise money. The expansion of Islamic finances rests on a lack of exposure to toxic assets and derivatives, often related to mortgages that prompted the collapses in the United States and elsewhere in October.

“This is why we believe that Islamic banks are so far immune to the offshoots of the global financial crisis because they are run in accordance with Sharia principles,” said Saleh Kamel, President of the General Council for Islamic Banks and Financial Institutions.

However the Saudi tycoon, who also chairs the Dallah al Baraka Group, did not rule out Islamic banks coming under pressure in future “if the crisis unfolds further to create currency and central bank problems.”

Adnan Yousuf, Chairman of the Arab Banks Federation, shared this viewpoint saying the impact of the world financial crisis on Islamic banks had been “minimal” due to the nature of their operations.

“This is mainly because Islamic banks are not involved in debt buying and most of their operations are inside the Arab world,” he said.

Besides its wide geographical scope, the expansion of the Islamic finance has been also taking place across the whole spectrum of financial activities, ranging from retail banking to insurance and capital market instruments.

The most striking phase could be the growth of Sukuk, the most popular form of securitized credit finance within Islamic finance. Sukuk commoditize capital gains from bilateral risk sharing between borrowers and lenders in sharia-oriented finance contracts into marketable securities without interest rate charges.

The rise of the Sukuk market as an alternative investment activity, is attracting the attention of an increasing number of private sector and official circles across the globe including the British government which is reportedly mulling to become the first Western government to buy this kind of Islamic bond.

According to a new study by the International Financial Services London (IFSL), an independent organization representing Britain’s financial services industry, Islamic finance will emerge largely “unscathed” from the current world crisis.

It attributed its findings mainly to the fact that Islamic financial institutions make little use of many of the complicated instruments blamed for the current problems in conventional banks such derivatives and short-selling.

source : et