This book provides comprehensive analysis in the areas Islamic financial institutions and society. It starts off with the integration of the Islamic socio-economic and socio-political systems with the Islamic financial sector; with a view to help in removing some of the stereotype views that people have on the Islamic society and religion. In doing this, it provides the readers with an understanding of the Islamic society, characteristics of an Islamic society, and Islamic economics thoughts and theories. It goes further to make the readers to understand the sources, evolution, and guiding principles and practices of the Islamic finance and commercial jurisprudence. Although the book acknowledges the innovative no-interest financing framework; but in the absence of zero cost of lending, it develops an Islamic interest rate theoretical framework structure based on the profit-margin concept of the Islamic financial system. It goes on further to cover the structures, roles, functions, and monetary policies of the Islamic central banks in the absence of interest rate as well as proposes that organizational structures for the Islamic central banking system should include an Islamic finance division to oversee and monitor the Islamic financial institutions squarely. Flow charts are used to explain the structure, operations, models, products, instruments, and services of the Islamic commercial banks, financial institutions, insurance, and capital markets. This helps the readers to understand the dichotomies between the Islamic and conventional financial systems. It provides detailed systematic, logical steps, and processes involved in the Islamic financial transactions with the use of flow chart graphs which will help the readers in grasping the essentials of the Islamic financial sector; which will help the readers to understand the step-by-step processes and facilitate the conceptual clarities involved in the product deliveries and processes of the Islamic financial institutions. The book's concluding chapters were devoted to the performance, achievements, governance, challenges, and future expectations of the Islamic banking, finance, and capital markets. The book concludes with some suggestions on how to make the Islamic finance and its products more acceptable to the entire world; especially to the non-Muslim community of the world.
John O. Kuforiji is associate professor of economics and finance at Prince Mohammad Bin Fahd University.
Part I: The Evolution of the Islamic Banking and Finance Chapter 1: Islamic Social-Political System Chapter 2: Islamic Economic System: Evolution and Theoretical Framework Chapter 3: Islamic Legal System Chapter 4: Islamic Banking, Finance, and Commercial Jurisprudence Part II: Islamic Banking Chapter 5: Non-Interest Banking Framework Chapter 6: Islamic Central Banks and Monetary Policies In The Interest-Free Countries Chapter 7: The Structure and Operations of the Islamic Banking System Chapter 8: The Products and Services of the Islamic Commercial Banks Part III: Islamic Financial Institutions Chapter 09: The Structure and Operations of the Islamic Financial Institutions Chapter 11: Islamic Financial Money Markets and Instruments Chapter 12: Practice, Techniques, and Theories of Islamic Insurance (Takaful) Part IV: Islamic Capital Markets Chapter 13: The Products and Services of the Islamic Insurance Industry Chapter 14: Structure and Operations of the Islamic Capital Markets Chapter 15: The Instruments, Products and Services of the Islamic Capital Markets Part V: The Performance, Corporate Governance, Challenges, and Future Outlook of the Islamic Finance Chapter 16: The Performance of Islamic Finance Industry Chapter 17: The Corporate Governance Issues for the Islamic Financial Institutions. Chapter 18: The Challenges and Future Outlook for the Islamic Finance
This book provides the readers with all basic principles of Islamic banking which are necessary for them to differentiate Islamic banking from conventional banking. I recommend the book to be used as the textbook for Principles of Islamic Banking course at the university level. -- Sutan Emir Hidayat, University College of Bahrain The Essentials of Islamic Banking, Finance, and Capital Markets simplifies banking, finance and capital market issues through an in-depth analysis organized into 18 chapters. The evolution of Islamic economic and legal system was traced as a framework for understanding the subject matter. The five-part book dexterously dissects practices and institutions of Islamic banking, insurance, and capital market. In addition it examines issues relating to performance, governance and challenges to chart a pathway for the future for Islamic financial system. A unique feature of the book is illustrations tables, figures and examples. It is a good book for students and practioners and more importantly for those who are interested in comparative banking and financial system. -- E. Olawale Ogunkola, University of Ibadan
