Rate of profit as a pricing benchmark in Islamic banking as a substitution of interest rate to create financial stability

Supriyanto, Trisiladi

doi:10.1201/9781315165417-11

Cited by 2 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They list 15 interest-free monetary policy tools found in Malaysia. In a more recent study, Supriyanto (2017) suggests Shari’ah reference rate depending on the rate of profit as a substitute for the central bank of Indonesia. The study finds that such a suggestion would enhance the stability of the Islamic financial market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The following works, such as by Zangeneh and Salam (1993), concentrated on the suitability of the existing interest-free tools without developing a new model. Some recent studies attempting to develop a new model, such as by Supriyanto (2017), do not depend on an expert view, and also, shariah concerns are not explicitly discussed. Compared to all these studies, this paper develops an expert-based new interest-free monetary policy tool by evaluating the existing tools from shariah perspective.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Evaluating the current interest-free monetary policy tools and suggesting a new one: case of Turkey via examples of Malaysia, Pakistan, and Bahrain

Orhan

Zaheer²,

KAZANCI

2023

QRFM

View full text Add to dashboard Cite

Purpose This paper aims to achieve two goals: first, to evaluate the existing interest-free monetary policy tools in the major Islamic financial hubs of Malaysia, Pakistan and Bahrain and; second, to suggest how monetary policy tools in Turkey can be used in other countries. Design/methodology/approach This study follows a qualitative research method based on literature review, comparison, evaluation and design. Findings The policy rate cannot be used due to Shariah concerns. The reserve requirement depends on qard, and the reserves should be kept separately in the central bank. In terms of ijarah sukuk, Shariah concerns should be taken into account and a new structure, as displayed in Figure 3, should be followed. Government investment certificates can be used as an interest-free monetary policy tool. A genuine mudarabah interbank investments can also be used. Wadiah acceptance with no habitual gift can be used as well, and Tawarruq and central bank notes are not preferable due to Shariah concerns as well. Having said that, a Turkey-based tawarruq platform can be structured for others to use instead of applying to London. Originality/value This paper’s unique suggestion is to develop an interbank taqaruz market and a taqaruz method with the central bank. It is also unique for Turkey in the subject.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Evaluating the current interest-free monetary policy tools and suggesting a new one: case of Turkey via examples of Malaysia, Pakistan, and Bahrain

Orhan

Zaheer²,

KAZANCI

2023

QRFM

View full text Add to dashboard Cite

show abstract

“…Central Bank of Indonesia [25] proposes the development of a micro model of a commodity market equilibrium analysis. There are several basic principles of this model, namely:…”

Section: Index Of Real Sector Returnsmentioning

confidence: 99%

A Review: Product Pricing of Islamic Banking in Indonesia

Purbayati

Afgani

Rivanda

2021

EJBMR

View full text Add to dashboard Cite

Indonesia is a country with the largest Muslim population in the world with a Muslim population reaching 87% of the total population. This is an opportunity for Islamic Banks to be able to grow and develop as a bank with the concept of a profit-sharing bank. It is appropriate for all operational activities, including pricing stipulations for Islamic banking products, to be free from the element of interest (interest rate free). However, in practice, there are still pricing stipulations in Islamic banking products that benchmark interest rates. This study aims to review the pricing determination of Islamic banking products in Indonesia. The method used in this research proposal is a literature review. The literature review produced several alternative purposed for the Islamic Pricing Benchmarking method as a benchmark that can be used by Islamic banking in determining the pricing of its products.

show abstract

Rate of profit as a pricing benchmark in Islamic banking as a substitution of interest rate to create financial stability

Cited by 2 publications

References 0 publications

Evaluating the current interest-free monetary policy tools and suggesting a new one: case of Turkey via examples of Malaysia, Pakistan, and Bahrain

Evaluating the current interest-free monetary policy tools and suggesting a new one: case of Turkey via examples of Malaysia, Pakistan, and Bahrain

A Review: Product Pricing of Islamic Banking in Indonesia

Contact Info

Product

Resources

About