An Introduction to Islamic Finance Theory and Practice

by Iqbal, Zamir; Mirakhor, Abbas

• ISBN13: 9780470828083
• ISBN10: 0470828080
• Edition: 2nd
• Format: Hardcover
• Copyright: 2011-08-09
• Publisher: Wiley

Summary

This timely book offers comprehensive coverage on the fundamental theory of Islamic finance and banking, according to the core concepts of Shariah' law. The authors explain clearly the distinct features of an Islamic financial system and how it compares with conventional systems. There have been a number of interesting developments in recent years and the authors discuss these fully, along with emerging issues that will influence future developments in Islamic finance. The recent financial crisis has reignited the debate on development of a risk-sharing financial system such as that required in Shariah Law. The book highlights the underlying principles of risk-sharing of Islam and how it advocates for risk-sharing in the financial transactions. The book also argues that a risk-sharing financial system will also promote greater financial stability.

Author Biography

DR. ZAMIR IQBAL works as Lead Investment Officer in the Treasury of the World Bank in Washington, D.C. He earned his Ph.D. in International Finance from the George Washington University. He has extensive experience with capital markets, structured products, risk management, financial sector development, and financial modeling. His research interests include Islamic finance, financial engineering, structured finance and risk management. He is co-author of several books on Islamic banking and finance. He also serves as Professional Faculty at the Johns Hopkins Carey Business School where he teaches graduate level courses on investment and portfolio management and risk of financial institutions.

DR. ABBAS MIRAKHOR received his Ph.D. in Economics from Kansas State University in 1969. After teaching at various universities in the USA and in Iran he joined the staff of the Research Department of the IMF in 1984. He became an Executive Director of the IMF from 1990 until his retirement in 2008. He is the author of a number of articles and books on Islamic economics and finance. He is now the first holder of the INCEIF Chair in Islamic Finance.

Table of Contents

Glossary	p. ix
Introduction	p. 1
The Economic System	p. 28
Riba vs. Rate of Return	p. 57
Financial Instruments	p. 75
Risk Sharing as an Alternative to Debt	p. 99
The Islamic Financial System	p. 113
The Stability of the Islamic financial System	p. 137
Islamic Financial Intermediation and Banking	p. 151
Capital Markets	p. 173
Non-bank Financial Intermediation	p. 207
Performance of Islamic Financial Services	p. 225
Financial Engineering	p. 245
Risk Management	p. 275
Regulation of Islamic Financial Institutions	p. 299
Corporate Governance	p. 323
Globalization and its Challenges	p. 351
Issues and Challenges	p. 365
Bibliography	p. 393
Index	p. 399
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