Islamic Banking and Friedman's Rule

Yousefi, Mahmood; McCormick, Ken; Abizadeh, Sohrab

doi:10.1080/00346769500000003

Cited by 9 publications

(10 citation statements)

References 11 publications

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“…15. Yousefi et al (1995) have illustrated this relationship. If monetary policy creates a positive rate of inflation, there cannot simultaneously be zero nominal and real interest rates.…”

Section: This Bookmentioning

confidence: 91%

Introduction

Hossain¹

2015

Central Banking and Monetary Policy in Muslim-Majority Countries

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“…15. Yousefi et al (1995) have illustrated this relationship. If monetary policy creates a positive rate of inflation, there cannot simultaneously be zero nominal and real interest rates.…”

Section: This Bookmentioning

confidence: 91%

Introduction

Hossain¹

2015

Central Banking and Monetary Policy in Muslim-Majority Countries

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“…On the other hand, a Musharakah contract is a type of partnership where all partners jointly contribute capital and manage the business venture (ElGindi et al, 2009;Abdouli, 1991). Profits are shared based on a pre-negotiated ratio, while losses are borne in proportion to the capital contributions by the partners (Aggarwal and Yousef, 2000;Hearn et al, 2012;Yousefi et al, 1995;Kayed, 2012). Musharakah contracts are considered optimal in the development of Islamic private equity and venture capital markets, which require capital provision with some control and influence over their management (Al-Suwailem, 1998;Hearn et al, 2012;Khan and BenDjilali, 2003).…”

Section: Participatory Finance and Its Philosophical Underpinningsmentioning

confidence: 99%

Nexus between higher ethical objectives (Maqasid Al Shari’ah) and participatory finance

Nouman

Siddiqi

Ullah

et al. 2021

QRFM

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Purpose This paper aims to conceptualize the nexus between the participatory finance and the higher ethical objectives within the Islamic moral economy, also termed as Maqasid al Shari’ah. Design/methodology/approach Insights from the extant Islamic economics and finance literature are integrated through an interpretative systematic review using the principles from critical interpretative synthesis (CIS). Findings A coherent framework is synthesized comprising the typology of the Maqasid al Shari’ah, the axioms of participatory finance and their nexus which is formulated by theorizing the common thread of meaning through the axioms of participatory finance and Maqasid al Shari’ah at the interpretative level. This framework postulates that the participatory finance fits well in the ethos and the value system of Islam. Moreover, “social well-being” invariably provides the nexus between the Maqasid al Shari’ah and participatory finance. Originality/value This study contributes to the Islamic economics and finance literature by integrating the dissenting views from the divergent literature related to the basic philosophy of Shari’ah and participatory finance and provides grounds for policy implications, particularly, for designing the financial products. Moreover, it demonstrates an application of interpretative systematic review in Islamic banking and finance research.

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“…On the other hand, Musharakah is a type of partnership where all partners jointly contribute capital and manage the business venture (Abdouli, 1991;ElGindi et al, 2009). Profits are shared based on a pre-negotiated ratio, while losses are borne in proportion to the capital contributions by the partners (Aggarwal & Yousef, 2000;Hearn et al, 2012;Kayed, 2012;Yousefi, McCormick, & Abizadeh, 1995). Musharakah contracts are considered optimal in the development of Islamic private equity and venture capital markets, which require capital provision with some control and influence over their management (Al-Suwailem, 1998;Hearn et al, 2012;Khan & BenDjilali, 2003).…”

Section: Partici Patory Financing In the Theory And Practice Of Islammentioning

confidence: 99%

Why Islamic Banks Tend to Avoid Participatory Financing? A Demand, Regulation, and Uncertainty Framework

Nouman¹,

Ullah²,

Gul³

2018

BER

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Partici patory financing arrangements including Musharakah and Mudarabah are the essence of Islamic banking and represent the true spirit of Islamic banking and finance. Therefore, Islamic banks are expected to allow and promote partici patory financing. In practice, they do not adopt partici patory financing on the assets side due to several constraints. By far, the non-partici patory financing arrangements, particularly Murabahah and Ijarah, are the most dominant modes of financing around the globe. Many authors have provided different explanations for the tendency of Islamic banks to avoid partici patory financing. However, literature is divergent and the typology of the constraints to partici patory financing is missing. Therefore, there is no unified understanding of the constraints to partici patory financing. The present study employs insights form the extant literature using a systematic literature review and synthesizes a coherent partici patory financing constraints framework using the thematic synthesis method to name and make sense of what makes partici patory financing a less attractive option for Islamic banks. This study adds to the Islamic banking and finance literature by synthesizing the divergent literature, and conceptualizing a partici patory financing constraints framework which can be used as a dependable framework for assessment in any related case study and policy implications. Moreover, it demonstrates an application of systematic review in Islamic banking research.

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Islamic Banking and Friedman's Rule

Cited by 9 publications

References 11 publications

Introduction

Introduction

Nexus between higher ethical objectives (Maqasid Al Shari’ah) and participatory finance

Why Islamic Banks Tend to Avoid Participatory Financing? A Demand, Regulation, and Uncertainty Framework

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