Islamic Finance, Risk-Sharing and Macroeconomic Stability

1. Front Matter

   Pages i-xvi

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2. Introduction

   • Muhamed Zulkhibri, Turkhan Ali Abdul Manap

   Pages 1-8

3. The Nature of Islamic Economics and Macroeconomic Stability

   1. Front Matter

      Pages 9-9

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   2. Islamic Economics: “New Paradigm” or “Old Capitalism”?

      • Necati Aydin

      Pages 11-40

   3. The Theological Foundations of Islamic Banking: A Critical Review

      • Md. Thowhidul Islam

      Pages 41-59

4. Risk-Sharing, Islamic Bank Capital and Financial Regulation

   1. Front Matter

      Pages 61-61

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   2. Capital Structure and Shari’ah Compliance Firms: Malaysian Evidence

      • Asyraf Abdul Halim, Mohd Edil Abd Sukor, Obiyathulla Ismath Bacha

      Pages 63-79

   3. Capital Regulatory Requirements for Islamic Banks in the UAE: A Comparative Analysis

      • Abdussalam Ismail Onagun

      Pages 81-94

   4. Monetary Management in a Dual Banking System: A Nominal-GDP Targeting Approach

      • Mehdi Hadian

      Pages 95-118

5. Financial Leverage and Risk-Sharing in Islamic Banking

   1. Front Matter

      Pages 119-119

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   2. Determinants of Financial Leverage in Islamic Banks

      • M. A. Rehman Shah, A. Rashid, M. Khaleequzzaman

      Pages 121-149

   3. Measuring Systemic Risk in Dual Banking System: The Case of Malaysia

      • Turkhan Ali Abdul Manap

      Pages 151-170

   4. Credit Risk, Bank Performance and Islamic Banking: Evidence from Pakistan

      • Azam Ali, Muhamed Zulkhibri, Tanveer Kishwar

      Pages 171-189

6. Islamic Finance for Socioeconomic Development

   1. Front Matter

      Pages 191-191

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   2. Resource Mobilisation and Islamic Charity-Giving in Indonesia: Evidence from Low-Income Households

      • Laily Dwi Arsyianti, Salina Kassim, Adewale Abideen Adeyemi

      Pages 193-221

   3. Islamic Finance and Financial Exclusion in Minority Muslim Countries: The Case of India

      • Ummer Farooque Musliyar Kurunkatil

      Pages 223-235

   4. Fintech and Risk-Sharing: A Catalyst for Islamic Finance

      • Siti Muawanah Lajis

      Pages 237-254

7. Back Matter

   Pages 255-268

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The concept of risk-sharing in financial and social contracts is one of the unique features of Islamic finance. Many theoretical studies generally claim superiority of an Islamic financial system based on pure equity and participatory modes of financing, while empirical studies provide mixed results. Studies and discussions are needed to fully understand how Islamic finance could contribute to the ongoing discussion of financial stability. Against this background, this book addresses various aspects of Islamic finance and the risk-sharing mechanism contributions to the overall macroeconomic and financial stability. Undoubtedly, the findings and recommendation from this book should be of great interest not only to future academic researchers in the field of macroeconomic stability and Islamic finance, but also to policy makers and regulators who are keen on drawing lessons from Islamic finance experiences to prevent similar crisis in the future.  

• islamic finance
• Islamic economics
• macroeconomic stability
• Islamic banking
• Monetary Policy
• Corporate Finance
• Financial Resilience
• Risk-Sharing

• Islamic Research and Training Institute, Islamic Development Bank, Jeddah, Saudi Arabia

  Muhamed Zulkhibri, Turkhan Ali Abdul Manap

Muhamed Zulkhibri is a Senior Economist at Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB), Kingdom of Saudi Arabia, with years of experience in the Central Bank of Malaysia and policy-oriented institutions. He has written extensively on monetary economics, financial institutions and markets, finance and economic development as well as Islamic economics and finance. He has published in leading academic journals, industry reports, and the financial press. He has also lectured for under- and post-graduate programs at the University of Nottingham, UK and University Putra, Malaysia. He earned a PhD in economics from University of Nottingham, UK.

Turkhan Ali Abdul Manap is a Senior Research Economist at Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB), Kingdom of Saudi Arabia. Prior to joining IRTI, he was an Associate Professor of Economics in the Faculty of Economics and Management Sciences, International Islamic University Malaysia (IIUM), where he taught various courses for Bachelor, Master and PhD levels. His research interests include macroeconomics, (Islamic) capital markets, financial stability, and stress testing for Islamic financial institutions. He has spoken and attended various national and international conferences on economics and finance issues and his research papers have appeared in numerous academic journals. He obtained his PhD in economics from IIUM, Malaysia.

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