Islamic Finance: Law, Economics, and Practice
Cambridge University Press
Edition: Illustrated, 10/26/2011
EAN 9780521741262, ISBN10: 0521741262
Paperback, 240 pages, 22.9 x 15.2 x 1.4 cm
Language: English
This book provides an overview of the practice of Islamic finance and the historical roots that define its modes of operation. The focus of the book is analytical and forward-looking. It shows that Islamic finance exists mainly as a form of rent-seeking legal-arbitrage. In every aspect of finance - from personal loans to investment banking, and from market structure to corporate governance - Islamic finance aims to replicate in Islamic forms the substantive functions of contemporary financial instruments, markets, and institutions. By attempting to replicate the substance of contemporary financial practice using pre-modern contract forms, Islamic finance has arguably failed to serve the objectives of Islamic law. This book proposes refocusing Islamic finance on substance rather than form. This approach would entail abandoning the paradigm of 'Islamization' of every financial practice. It would also entail reorienting the brand-name of Islamic finance to emphasize issues of community banking, micro-finance, and socially responsible investment.
1. Introduction
2. Jurisprudence and arbitrage
3. Two major prohibitions
Riba and Gharar
4. Sale-based Islamic finance
5. Derivative-like sales
Salam, Istisma' and 'Urbun
6. Leasing, securitization and Sukuk
7. Partnerships and equity investment
8. Islamic financial institutions
9. Governance and regulatory solutions in mutuality
10. Beyond Shari'a arbitrage
Conclusion.
'This book is by far one of the best that has been published on the topic of Islamic finance and banking.' Choice Magazine, Outstanding Academic Title, 2007