A Basic Guide to Contemporary Islamic Banking and Finance

I was invited by ISNA to produce a quick guide Islamic Banking and Finance …. The abuse of the Islamic banking and financial services in a number of Islamic finance is emerging ….

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Preface
Why Islamic Finance?

  • 1 Prohibitions of Riba and Gharar
  • 1.1 The prohibition of Riba … 2
  • 1.1.1 Debt re-sale … 5
  • 1.2 The Prohibition of Gharar … 6
  • 1.3 Obeying the Law … 8
  • 2 Permissible Financing Methods
  • 2.1 Cost-plus sales (murabaha) … 10
  • 2.2 Credit sales (bay bithaman ajil) … 11
  • 2.3 Leasing (’ijarah or ıjar) … 13
  • 2.4 Partnerships (musharaka and mudharaba) … 15
  • 2.5 Islamic forwards (salam and ’istisna\’) … 17
  • 3 Permissible Investment Vehicles
  • 3.1 Investing in equities … 18
  • 3.2 Fixed income funds … 21
  • 4 Permissible Insurance Alternatives
  • 4.1 Prohibition of financial insurance … 24
  • 4.2 Cooperative insurance … 26
  • 5 Answers to Commonly Asked Questions
  • 5.1 Trading in stocks … 27
  • 5.2 Interest on bank deposits … 29
  • 5.3 Lending … 31
  • 5.4 What is the difference? … 34
  • A Translation & transliteration
  • A.1 Abbreviations … 37
  • A.2 Transliteration table: … 38
  • A.3 Glossary of used Arabic terms … 39

 

Download A Basic Guide to Contemporary Islamic Banking and Finance pdf from www.ruf.rice.edu, 49 pages, -KB.