Development of Islamic Finance Jubril Salaudeen

Transcript:Development of Islamic Finance Jubril Salaudeen:
Development of Islamic Finance Jubril Salaudeen Abdullahi PhD Outline Pre Islamic Arab Finance Islamic Finance among Muslims Arabs Various efforts at Attaining modern Islamic Finance Islamic Banking across the world Takaful Around the world Islamic capital Market Islamic Micro Finance Islamic Fintech Pre-Islamic Arab Arabic Financial and economic system pre-Islam Trading based arrangements were common Bay’ al-musawamah (bargaining) Bay’ al-muzayadah (auctioning) Bay’ al-amanah (trust sale) Al-murabahah (resale with profit) Al-tawliyyah (resale at cost) Al-wadiah (resale at loss or below cost) Islamic Focus on Finance Eradication of riba institutions and practices Eradication of gharar transactions Institutionalization of fair and equitable markets No monopoly, fraud Standardization of money and commodity exchanges Islamization of many business organizations and institutions Mudaraba, musharaka, salam, muzara’ah (sharecropping or partnership in agriculture), musaqah irrigation) New organizations and institutions were introduced Zakah, waqf and manihah Baitul-mal Various Attempts at Islamic Finance Egypt : 25th July 1963 – February 1967 - Mit ghamr Islamic Savings Bank started in Egypt by El Naggar - Based on German saving bank. Purpose to mobilize the idle savings of the majority of - Muslim within the Shari’ah and to provide halal returns on their saving as well. Pakistan: 1950’s – in the rural area of Pakistan : Pious landowners deposits their funds without interest rewards Credit was advanced to other poorer landowners for agricultural improvements Nigeria: Muslim Bank (West Africa) Limited. [1967]: The bank operated from William street Lagos and license was revoked Snap shot on Islamic asset 2018/2019 Brake-down of Global Islamic finance by sector/Region Sectorial Composition of Global Islamic Finance 2019 Islamic Banking: Share in total Banking Asset (a) The countries in dark red coloured bars indicate those that satisfy the criterion of having a more than 15% share of Islamic banking assets in its total domestic banking sector assets and, hence, are categorised as systemically important (see footnotes 9, 10 and 11). (b) A recognition of systemic importance is considered for a jurisdiction that is within one percentage point of the 15% benchmark, provided it has active involvement (is among the top 10 jurisdictions) in the other two sectors of the IFSI – Islamic capital markets and takāful. Such jurisdiction, for instance Bahrain is shaded in grey bar. (c) Palestine, though within one percentage point of the 15% benchmark is not considered systemically important due to having no active involvement in the other two sectors of the IFSI. (d) Yemen,