La finance islamique : fondements, théorie et réalité

Martens, André

doi:10.7202/602361ar

Cited by 7 publications

(4 citation statements)

References 19 publications

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“…After their independence, countries with Moslem traditions discovered that Islamic finance allows them to distance themselves from the colonial period. The oil shocks represented the main technical element which enticed the concretization of the Shari'a compliant finance (Martens, 2001). Respect of the precepts of Islam was the slogan of this new branch of finance.…”

Section: The Malaysian Banking System Reformsmentioning

confidence: 99%

Does Islamic bank financing contribute to economic growth? The Malaysian case

Hachicha

Amar

2015

International Journal of Islamic and Middle Eastern Finance and Management

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Purpose – The purpose of this paper is to investigate empirically the impact of the Islamic Bank Financing on Malaysia’s economic growth over the period 2000Q1-2011Q4. Design/methodology/approach – A neoclassical production function augmented by some indicators of Islamic bank finance has been the theoretical framework for this paper’s empirical investigation. The unit root tests show that all the variables are integrated of order 1. The test of Johansen and Juselius (1990) has shown the existence of a single cointegrating relationship between the gross domestic product (GDP), the investment, the labor force and the indicator of Islamic bank finance. Hence, an error correction model has been constructed to estimate the economic growth elasticity with respect to the different Islamic bank finance indicators. Findings – The estimated elasticities show that, in the long run, the GDP in Malaysia is not sensitive to the Islamic financing. The estimation of an error correction model shows that the elasticity of the Malaysian output with respect to the different Islamic financing indicators in the short run turn around 0.35. Thus, the effect of the different Islamic finance indicators on the economic growth in the long run is less important than their effect in the short run. This economic result can be explained by the structure of the Islamic bank financing that marginalizes the profit-and-loss sharing (PLS)-based instruments. This turns out to be consistent with the economic reality in Malaysia, as the Islamic banks engage much more in non-participatory activities whose impact is, generally, of short term. Social implications – To improve the efficiency of the Malaysian Islamic banks as financial inter-mediaries that facilitate the capital accumulation and the economic growth, the paper suggests to strengthen the weight of the PLS-based instruments in the loan portfolios of the Malaysian Islamic banks. This may reduce inequalities and improve economic opportunities for people who have a high potential to contribute to the capital accumulation and the creation of the value-added. Originality/value – The contribution of this paper is two-fold. On the one hand, it provides a further contribution to the rare empirical literature relative to the impact of the Islamic finance on growth by determining the elasticity of economic growth with respect to Islamic bank financing in Malaysia. On the other hand, and to the best of the authors’ knowledge, this paper remains the first to correctly resort to the error correction model in determining this elasticity.

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Section: The Malaysian Banking System Reformsmentioning

confidence: 99%

Does Islamic bank financing contribute to economic growth? The Malaysian case

Hachicha

Amar

2015

International Journal of Islamic and Middle Eastern Finance and Management

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“…The Islamic Development Bank in Jeddah was established in 1975 and followed by the Dubai Islamic Bank (the first Islamic private bank) and the Arab Bank for Development in Africa. According to André Martens (), Islamic banks were developed because a renewed vitality of Islam beginning in the middle of the twentieth century created a strong demand for shari᾽a‐compliant financial instruments. In addition, Islamic banks were able to attract wealthy Muslim investors.…”

Section: Introductionmentioning

confidence: 99%

How Ethical is Islamic Banking in the Light of the Objectives of Islamic Law?

Mansour¹,

Jedidia²,

Majdoub³

2015

Journal of Religious Ethics

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Islamic banking is based on moral foundations that make it distinct from conventional banking. Some argue that because of its foundation in Islam, Islamic banking may represent a more morally appealing alternative. Yet, evidence shows that this is not the case. Indeed, the current practice of Islamic banking has not been able to achieve its goals which are based on Islam's moral values: to enhance justice, equitability, and social well‐being. This essay examines the extent to which Islamic banking is ethical and concludes that the practice of the industry does not seem to be de facto ethical from the Islamic perspective of ethical values. It only consists in trading the same instruments of conventional banks without genuinely enforcing Islam's ethical vision. The practice of Islamic banking misrepresents Islam and does not contribute to solving social problems. The interaction between maqasid al‐shari᾽a (objectives of Islamic law) and qiyās (deductive analogy) provides a supplementary tool for interpreting the failure of the prior in terms of the practical misuse of the latter by Islamic banks. This essay provides an interpretive approach to the current debate about why Islamic banking has failed and suggests ways to move cautiously in the future.

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“…The return of Shari'a does not only mean a return to Muslim penal law. It also means the implementation of Islamic finance (Martens, 2001). Islamic finance requires that lenders and borrowers of capital do not define interest (prohibition of usury or riba), share profits and losses, do not speculate (prohibition of incertitude, gharar), rely on real goods or adjacent assets, and do not finance illicit goods such as alcohol, tobacco, gambling, or arms (Martens, 2001, p. 10, Kuran 1997b, 2009, El Qorchi, 2005.…”

Section: Development Of Islamic Financementioning

confidence: 99%

Economic freedom in Muslim countries: an explanation using the theory of institutional path dependency

Facchini

2011

Eur J Law Econ

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International audienceThis article explains the level of economic freedom in Muslim countries through the theory of institutional path dependency. Islamic countries are generally not free and they have a poor record regarding property rights. To explain these realities we use the institutional history of Muslim countries. We define three steps: the Arab and Ottoman Empires when Islamic law was of great importance, European colonisation, and the contemporary era with its movement towards a revival of Islam. Islamic law is not liberal. This explain why in general Muslim countries are not free. Colonisation radically changed institutional life in the twentieth century. British colonisation proved to be better than did French or Soviet colonisation. This explains why the Persian Gulf countries are freer. The collapse of the Soviet model explains the speed of liberalisation in former socialist countries (such as Albania, Kyrgyz Republic, and Kazakhstan). Nevertheless, the twentieth century was not just the century of Westernisation. It was also the century of the revival of Islam. The article concludes that the history of the twentieth century does not explain the way in which Muslim countries are attracted by the ideal of the Muslim city. The revival of Islamic intellectual innovations and the evolution of Muslim opinion sustain this thesis. Therefore, there is a dependency on the past and on an imagined future. Islam acts, like yesterday, on the world of institutional possibilities

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La finance islamique : fondements, théorie et réalité

Cited by 7 publications

References 19 publications

Does Islamic bank financing contribute to economic growth? The Malaysian case

Does Islamic bank financing contribute to economic growth? The Malaysian case

How Ethical is Islamic Banking in the Light of the Objectives of Islamic Law?

Economic freedom in Muslim countries: an explanation using the theory of institutional path dependency

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