Five essays in "Legal and Regulatory Issues in Islamic Banking and finance"

Five essays in "Legal and Regulatory Issues in Islamic Banking and finance" Essay example
Masters
Essay
Finance & Accounting
Pages 5 (1255 words)
Download 0
1- Discuss the key elements of a legal framework for efficient functioning of Islamic banking. Islamic banks can provide efficient banking services to the nation if they are supported with appropriate banking laws and regulations. This will aid them to introduce PLS and other Islamic modes of operation, which are very conducive to economic development…

Introduction

However, in some cases Islamic banks can operate with a relatively limited efficiency facing a variety of regulatory challenges, but still they wouldn’t be operating as ideally efficient banks. This decrease in efficiency is not due to mechanical deficiencies inherent within Islamic banking, but to the inefficient operation of the conventional banking system, which obstructs the operation of Islamic banks as the symptoms of a conventional banking system pervades to Islamic banks likewise the conventional banks. This does not mean that the survival of Islamic banks operating within the conventional banking framework is threatened. Some regulators try to overcome this by adopting a separate Islamic banking regulatory framework parallel to that of the conventional banks. Ahmed stated that the challenge for Islamic law was to create financial contracts from traditional nominate contracts to meet the modern day needs of financial markets and intermediaries. Recent history of the growth of the Islamic financial sector is an indicator of the adaptability of Islamic law to changed situations. Given the principle of permissibility, Islamic commercial law can evolve as long as the limits imposed by Shariah are not traversed. ...
Download paper
Not exactly what you need?

Related papers

Islamic Finance
Their guiding principles and rules state that Allah owns everything in this world and that man has only been rendered permission to use it. In the United Kingdom, London has emerged itself to be the core ad centre of Islamic banking. In the United Kingdom, a decade ago, the business was perceived to be in its infancy this being the reason as to why its extent is limited (Rodney, 2000). A decade…
Current Issues in Islamic and Finance: Resilience and Stability in the Present System
An exploration of financial research methodology from a comprehensive perspective is necessary in order to develop the most advantageous context by which conclusions can be reached pertaining to this subject. Qualitative case research has a role in the financial fields, qualitative studies as well as quantitative can be understood in terms of a larger framework of research methodology spanning a…
Islamic Banking Operations and Instruments
Indeed, culture has been traditionally related to society and its intervention in economic life has been rather unexpected. Islamic banks follow specific rules. These rules mostly reflect the Islamic law, also known as Sharia law. Following these rules is considered as obligatory for the Islamic financial institutions. However, it is possible for additions to be made, according to the needs of the…
Mudarabah in Islamic Banking
It is the means by which bonding is done between two participants such that one of them is the financer and the other is the manager or the mudharib. While the investor or the RabbulMal is responsible for any losses made in the transaction the Mudharib suffers only the loss of the efforts put by him. The bank often acts as the Rabbul Mal or the capital provider who provides capital to the…
Islamic Banking
Islamic Banking is a type of banking that is constantly based on the Islamic or Shariah law and its implementation is through the growth of Islamic economics. This type of banking system prohibits the fixed payment interest on loaned money and it also shuns the investment in the business that cater goods and services that are considered unlawful in Islam. Today more than 200 Islamic financial…
Regulatory and Compliance Issues
This might include insurance policies (Corporations Act 2001, Section 763C). Non-cash payments refers generally to alternatives to cash payments such as cheques, credit cards, debit cards, travellers cheques and so on (Corporations Act 2001, Section 763D). B. Plain English Definition A plain English definition of financial advice is guidance and recommendations from an individual who is qualified…
Islamic Finance
In capitalism individuals have more choices where individuals are free to make decisions about their life, family, political involvement and business. In socialism individuals are not in control of their own decisions. In contrast to capitalism and communism; Islamic system also allows free decision making to individual until Islamic teachings and principles are not violated. In Islamic economic…