scholarly journals Time for Paradigm Shift in Islamic Finance Industry and Economy: Concepts of Profit, Loss, Enterprise Performance-Measure

2017 ◽  
pp. 1-9
Author(s):  
M Shamsul Haque
Keyword(s):  
Wealth Distribution ◽  
Performance Measure ◽  
Bank Loans ◽  
Islamic Finance ◽  
Sources Of Information ◽  
Return On Equity ◽  
Secondary Sources ◽  
Finance Industry ◽  
Efficiency And Effectiveness ◽  
Income And Wealth Distribution

The growth of Islamic Finance (IF) is hindered by non-conducive environment globally despite acceptability, efficiency and effectiveness of its products and services. The elements of non-conduciveness are bedded in the accounting methodology, tax- deductibility of interest expenses on bank loans, over-helming use of credit by households, businesses and governments, excessive use of leverage in banks, yielding disproportionately higher ROE (Return on Equity), resulting in global debt trap and extreme inequality in income and wealth distribution. Islamic finance if used properly by reforming the existing financial architecture and regularity environment can provide a sustainable basis for higher economic growth by encouraging private enterprises in Muslim and other countries by reducing deceit and corruption and increasing social capital through building trust. This will make the world a better place for humanity and avoid the impending threats from environmental and manmade disasters. This paper is based on secondary sources of information collected from publications of papers, research monograph, books and author’s own works done at Manchester Business School (MBS), Manchester, UK, 1974-77.Journal of Business and Technology (Dhaka) Vol.11(1-2) 2016; 1-9

The Fourth Market theory and interest rate benchmarking in the Islamic finance industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Tahiri Jouti
Keyword(s):  
Interest Rate ◽  
Business Model ◽  
Wealth Distribution ◽  
Islamic Finance ◽  
Economic Perspective ◽  
Profit Rate ◽  
Market Theory ◽  
Content Type ◽  
Finance Industry ◽  
The Impact

Purpose This paper aims to understand the issue of interest rate benchmarking in Islamic financial institutions (IFIs) from a macro-economic perspective and assessing the relevance of creating a Sharīʿah-compliant profit rate benchmark to solve this issue. This paper also aims at suggesting an Islamic alternative that will handle both the negative economic impact on IFIs as well as on their financial performance. Design/methodology/approach The paper is based on literature review of conventional finance and Islamic finance theories to construct a theoretical model to assess the impact of interest rate benchmarking on the ability of IFIs to achieve the objectives of the Islamic economy. Findings The macro-economic perspective concludes that conceiving a profit rate benchmark for the Islamic finance industry is not relevant to raising the Sharīʿah credibility of the industry. Indeed, several adjustments need to be introduced in terms of the business model. Research limitations/implications The recommendations of this paper require the involvement of financial authorities and governments for their implementation. Indeed, the adjustments require a macro-economic review. Practical implications The paper considers a profit rate benchmark irrelevant and inefficient. Instead, it suggests the necessary adjustments in terms of business model and economic approach for IFIs to achieve their objectives. Social implications The paper considers zakat implementation and the adjustment of IFIs as the real path to implement a fair wealth distribution in the society. Originality/value The creation of a profit rate benchmark has always been the only solution for the pricing issue in IFIs. This paper challenges this idea and tries to give a deeper understanding of the situation.

General Takaful claims: An experience of Takaful operator in Malaysia

2017 ◽  
Vol 5 (4) ◽  
pp. 18
Author(s):  
Amirul Afif Muhamat ◽  
Mohamad Nizam Jaafar ◽  
Sharifah Faigah Syed Alwi
Keyword(s):  
Life Insurance ◽  
Islamic Finance ◽  
Rigorous Analysis ◽  
Finance Industry ◽  
General Insurance ◽  
Bright Side ◽  
Main Components ◽  
Islamic Insurance ◽  
Gathering Data ◽  
Observation Period

Takaful is interchangeably referred as Islamic insurance. In Malaysia, the takaful sector is part of the main components for Islamic finance industry. The business can be divided into two: general and family takaful. To ease understanding on this niche sector; general takaful is comparable to general insurance while family takaful is akin to life insurance with special reference needs to be given on the requirement of the business to adhere to the Islamic precepts. The main business in general takaful is motor takaful and this line of business is faced with high takaful claims. This study appraised the factors which affect the general takaful claims based on the experience of one takaful operator in Malaysia (the name of takaful operator is not disclosed due to confidentiality). The factors are: number of claims; fraud; and coverage for protection. The limitation of this study is that the observation period is only 10 years which limits rigorous analysis to be done. Nevertheless, previous studies in this area depict the same limitation – constraint in gathering data that has long observation period. On the bright side, the data in this study is still capable to produce meaningful results to be referred with regards to this issue – general takaful claims.

Foreign Labour Migration, Economic Growth and Remittances in Nepal

Patan Pragya ◽  
2019 ◽  
Vol 5 (1) ◽  
pp. 122-132
Author(s):  
Laxman Singh Kunwer
Keyword(s):  
Working Environment ◽  
Labour Migration ◽  
Sources Of Information ◽  
Pull Factors ◽  
Push And Pull Factors ◽  
Secondary Sources ◽  
Foreign Labour ◽  
Increasing Trend ◽  
Push And Pull

This paper examines the history and current situation of foreign labour migration in Nepal, which is in increasing trend. This paper highlights on some major push and pull factors, impacts of labour migration and remittances. The role and impacts of remittances in Nepal are also another key issue of this paper. The objective of paper is to discuss historical aspects and highlights the role of remittances in Nepal. The paper is developed with the help of secondary sources of information and discussed only on Nepalese foreign labours. The existing exploitative working environment in destinations of Nepalese migrations labpurs, lack of skills and trainings among labour migrants including government to government agreement between labour sending (Nepal) and labour receiving countries to protect rights of labour migrants also has been discussed. This paper also highlights the need of effective foreign labour policies based on scientific research. There is need of reliable and proper environment of investment of remittances in productive sectors as well as use of migrant's skills and knowledge to achieve prosperity of nation.

Pentecostalism and African diaspora : a case study of the Redeemed Christian Church of God (RCCG), in North America

2020 ◽  
Vol 1 (2) ◽  
pp. 77-92
Author(s):  
Rotimi Williams Omotoye
Keyword(s):  
United States ◽  
North America ◽  
United States Of America ◽  
The United States ◽  
Church Of God ◽  
Sources Of Information ◽  
Christian Church ◽  
Secondary Sources ◽  
The Impact ◽  
The Church

Pentecostalism as a new wave of Christianity became more pronounced in 1970's and beyond in Nigeria. Since then scholars of Religion, History, Sociology and Political Science have shown keen interest in the study of the Churches known as Pentecostals because of the impact they have made on the society. The Redeemed Christian Church of God (RCCG) was established by Pastor Josiah Akindayomi in Lagos,Nigeria in 1952. After his demise, he was succeeded by Pastor Adeboye Adejare Enock. The problem of study of this research was an examination of the expansion of the Redeemed Christian Church of God to North America, Caribbean and Canada. The missionary activities of the church could be regarded as a reversed mission in the propagation of Christianity by Africans in the Diaspora. The methodology adopted was historical. The primary and secondary sources of information were also germane in the research. The findings of the research indicated that the Redeemed Christian Church of God was founded in North America by Immigrants from Nigeria. Pastor Adeboye Enock Adejare had much influence on the Church within and outside the country because of his charisma. The Church has become a place of refuge for many immigrants. They are also contributing to the economy of the United States of America. However, the members of the Church were faced with some challenges, such as security scrutiny by the security agencies. In conclusion, the RCCGNA was a denomination that had been accepted and embraced by Nigerians and African immigrants in the United States of America.

Religiosity, Neglected Risk and Asset Returns: Theory and Evidence from Islamic Finance Industry

2019 ◽  
Author(s):  
Saad Azmat ◽  
Haiqa Ali ◽  
A. S. M. Sohel Azad ◽  
M. Kabir Hassan
Keyword(s):  
Asset Returns ◽  
Islamic Finance ◽  
Finance Industry

scholarly journals Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach

2021 ◽  
Author(s):  
Yves Achdou ◽  
Jiequn Han ◽  
Jean-Michel Lasry ◽  
Pierre-Louis Lions ◽  
Benjamin Moll
Keyword(s):  
Continuous Time ◽  
Wealth Distribution ◽  
Closed Form Solution ◽  
Form Solution ◽  
Heterogeneous Agent ◽  
Saving Behavior ◽  
Income And Wealth Distribution ◽  
Heterogeneous Agent Models ◽  
Special Case

Abstract We recast the Aiyagari-Bewley-Huggett model of income and wealth distribution in continuous time. This workhorse model – as well as heterogeneous agent models more generally – then boils down to a system of partial differential equations, a fact we take advantage of to make two types of contributions. First, a number of new theoretical results: (i) an analytic characterization of the consumption and saving behavior of the poor, particularly their marginal propensities to consume; (ii) a closed-form solution for the wealth distribution in a special case with two income types; (iii) a proof that there is a unique stationary equilibrium if the intertemporal elasticity of substitution is weakly greater than one. Second, we develop a simple, efficient and portable algorithm for numerically solving for equilibria in a wide class of heterogeneous agent models, including – but not limited to – the Aiyagari-Bewley-Huggett model.

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