Islamic Banking and Finance in Asia

Islamic Banking and Finance in Asia : Windows of Opportunity

  • Hardback

Currently unavailable

Add to wishlist

AbeBooks may have this title (opens in new window).

Try AbeBooks

Description

This book continues to track the Islamic banking and finance developments in South East Asia, paying particular attention to new market developments, new products, new government interest/initiatives. The initial wait-and-see attitude has given way to applying banking and financial tools as countries realize the advantages and functionality of an Islamic banking system. This book will reveal the growing interest from predominantly non-Muslim countries as they embark on developing an Islamic banking system, which will prove to be more than a worthy competitor to established conventional banking system.The book will provide an update to the author's first book - "Islamic Banking and Finance in Southeast Asia - Its Development and Future" which was just an introduction on Islamic banking and finance with interest coming mostly from countries which are mostly inhabited by Muslims. As well as adding new chapters on Thailand, Pakistan with possible reference to India, China and Japan will be added while, this book will also include hard statistics proving the fast-growing trend of Islamic banking and finance to be more than a passing interest. Countries and regions with an established Islamic banking structure such as Malaysia and the Middle East are drawing investors from all kinds of faith.show more

Product details

  • Hardback | 350 pages
  • 153 x 229mm | 1,000g
  • John Wiley and Sons Ltd
  • Wiley-Blackwell
  • Hoboken, United States
  • 0470823488
  • 9780470823484

Table of contents

Chapter 1 Shari'ah and Islamic Banking - Explain that the presence of Shari'ah demands for Islamic Banking as it is not halah to use conventional banking due to interest. Rationale of prohibiting interest [see chapter 3.4 ] - Shari'ah is reflected in the Muslim way of life and the way Islamic banking is conducted (e.g. No undue concentration of wealth in a few hands, wealth should not be hoarded by used productively, no gambling or liquor businesses, etc) [see chapter 3.2, 3.3, 3.7] - Short history of Islamic banking starting from Egypt [see chapter 4.1] Chapter 2 Islamic Banking Products - Islamic banking works mostly based on the profit-sharing model [see chapter 3.8] - Islamic equity-financing and debt-financing [see chapter 4.6-4.8] - Islamic debt-securities [see chapter 4.9] - Islamic leasing [see chapter 4.10] - Islamic takaful [see chapter 4.12-4.14] {Chapter 2 borrows from chapter 4 of the old book as this is the part of the book which lays down the Islamic financial instruments available to fulfil similar financial transactions conducted in conventional banking.} Chapter 3 Malaysia - Short history of Islamic banking in M'sia, with mention of Bank Negara, shari'ah supervisory council [see chapter 8.1-8.3] - Highlight successful Islamic banking instruments available in M'sia, such as debt securities in the KLSE, Islamic accepted bills (IAB), takaful [see chapter 8.8-8.10] - Future expansion plans of Islamic banking in M'sia, such as joint-projects with a foreign bank (from Middle East), government initiatives - Provide updated figures on the growth of Islamic banking in M'sia. Chapter 4 Labuan - Short history of Islamic banking in Labuan, with mention of its offshore status, the involvement of the Labuan Financial Services Authority (LOFSA) in the International Islamic Financial Market (IIFM) [see chapter 10.1, 10.6] - Co-operation between the Labuan International Financial Exchange (LFX) and the Bahrain Stock Exchange (BSE) [see chapter 10.5, 10.7] - Highlight successful Islamic banking instruments available in Labuan, such as Islamic debt certificates (sukuk) [see chapter 10.7] - Future expansion plans of Islamic banking in Labuan, such as joint-projects with a foreign bank (from Middle East), government initiatives - Provide updated figures on the growth of Islamic banking in Labuan. Chapter 5 Brunei - Short history of Islamic banking in Brunei, with mention of the merge between Islamic Bank of Brunei (IBB) and Islamic Development Bank of Brunei (IDBB) to form Bank Islam Brunei Darussalam (BIBD), [see chapter 11.5, 11.7] - Highlight successful Islamic banking instruments available in Brunei, such as takaful, sale of commercial paper [see chapter 11.6, 11.7] - Future expansion plans of Islamic banking in Brunei, such as joint-projects with a foreign bank (from Middle East), government initiatives - Provide updated figures on the growth of Islamic banking in Brunei. Chapter 6 Indonesia - Short history of Islamic banking in Indonesia, with mention of the banking act No. 23 of 1999 giving authority to Bank Indonesia to conduct Islamic banking, the Islamic Banking Development Committee [see chapter 9.3-9.4] - Highlight successful Islamic banking instruments available in Indonesia, such as murabaha, mudharabah [see chapter 9.6] - Future expansion plans of Islamic banking in Indonesia, such as joint-projects with a foreign bank (from Middle East), government initiatives - Provide updated figures on the growth of Islamic banking in Indonesia. Chapter 7 Pakistan - History of Islamic banking in Pakistan. As this is a new country not mentioned in the earlier book, information justifying its inclusion in the book is essential. Not just mere increase interest/demand by the people in Pakistan, but possibly established Islamic banks seeking to have their presence in Pakistan or Pakistan having talks and conferences with countries with established Islamic banking industry (e.g. Bahrain), or government initiatives. Also include mention of the untapped market if Islamic banking is fairly new in the country. Chapter 8 Thailand - History of Islamic banking in Thailand. As this is a new country not mentioned in the earlier book, information justifying its inclusion in the book is essential. Not just mere increased interest/demand by the people in Thailand, but possibly established Islamic banks seeking to have their presence in Thailand or Thailand having talks and conferences with countries with established Islamic banking industry (e.g. Bahrain), or government initiatives. Also include mention of the untapped market if Islamic banking is fairly new in the country. Chapter 9 Emerging Markets: China, Indian and Japan - Brief information regarding the Muslim population in the 3 countries. As these countries were not mentioned in the earlier book, information justifying the inclusion in the book is essential. As these are only emerging markets, it could be the government showing interest through talks/conferences, or external banks seeking to provide Islamic banking in the countries. Also include mention of the untapped market if Islamic banking is fairly new in the countries. Chapter 10 Singapore, staying ahead of the banking industry - Short history of Islamic banking in Singapore, with mention of the MAS initiatives, OCBC appointed a full-time shari'ah advisory council, the FTSE SGX Asia Shari'ah 100 index [see chapter 12.7] - Highlight successful Islamic banking instruments available in Singapore, such as takaful, Islamic savings and checking accounts, Islamic equity fund [see chapter 12.7] - Highlight the large pool of established bank wanting to be involved in Islamic banking & finance in Singapore, such as OCBC, HSBC Insurance, Maybank, NTUC Income, CIMB Bhd. This shows the companies' trust in Singapore's banking fundamentals and not at all influenced by the small local market demand. - Highlight joint projects or future plans which Singapore has with established Islamic banks and institutions, such as Abu Dhabi Commercial Bank (ADBC), Gulf Finance House (GFH). [see chapter 12.7] - Future expansion plans of Islamic banking in Singapore, such as joint-projects with a foreign bank (from Middle East), government initiatives - Provide updated figures on the growth of Islamic banking in Singapore. Chapter 11 Issues and Challenges - Different school of thoughts (4 schools) guiding how strict the shari'ah should be applied in crafting Islamic banking & finance instruments. Without standardised rules, one Islamic banking instrument permitted in M'sia may not be permitted in Saudi Arabia. [see chapter 5.3, 5.4] - Conventional banking rules are very much guided by European legal systems, but the latter does not take into account of the Qu'ran or the shari'ah. [see chapter 5.5] - Absence of standardised and recognised guidelines on corporate regulatory practices of Islamic banking and finance [see chapter 5.6] - Regulators' concerns on the capital adequacy ration (CAR) [see chapter 5.8] - Islamic banking does away with interest (riba) and adopts the profit and loss sharing (PLS) model. This changes the depositor and regulator roles and special requirements are needed to provide for the model. [see chapter 5.7, 5.11] {Chapter 11 borrows from chapter 5 of the old book as this is the part of the book which lays down the issues and challenges which Islamic banking & finance are facing. } Chapter 12 Windows of Opportunity - This chapter does a comparison between Islamic banking industry in the Middle East which is recognised as the leading player, and that of South-east Asia (or Asia?). However, due to 9/11, prudent investors may decide to channel their funds to Islamic banking & finance institutions to SEA. Also, Singapore has established itself to be an international financial centre, with fundamentals firmly in place. Its stable and non-Islamic guided government is another safe card which foreign investors look for. Can co-operation between the Middle East and the SEA countries promise a boom to the Islamic banking & finance? A large, mostly untapped market is still evident in SEA and no banking institution (Islamic or otherwise) would be foolish to dispute that. Established conventional banks, such as Citibank were quick to act and provide Islamic banking instruments. Non-Muslims are equally drawn to Islamic banking as by conventional banking, only being influenced by the strength of the instruments and profit-driven business decisions. Chapter 13 Conclusion - Highlight the difficulties facing Islamic banking (such as different school of thought, absence of corporate regulatory guidelines), but with the silver lining that with increased co-operation between countries, banking institutions, shari'ah supervisory councils, the Islamic banking industry is only in the infant stages, with countless opportunities of growth. - Provide updated figures on the growth of Islamic banking worldwide, possibly including a prediction on the growth (e.g. 7% per year?) and which countries can emerge to be the big players of the industry. This will support our stand that there is no better time to join the Islamic banking & finance bandwagon than now, as it is not a mere passing phase, but a burgeoning industry waiting to happen.show more