True and Fair View - An Islamic Perspective

True and Fair View - An Islamic Perspective 
Doctoral thesis, University of Surrey
Bucheery, Raja Ali M (2001)

True and Fair View - An Islamic Perspective

Incoherence of Contract-Based Islamic Financial Jurisprudence in the Age of Financial Engineering

Incoherence of Contract-Based Islamic Financial Jurisprudence in the Age of Financial Engineering
Mahmoud A. El-Gamal
Rice University
Duke Islamic Studies Center

May 2007

Abstract: "Islamic financial jurisprudence has always had the stated aim of enhancing human welfare, and therefore prohibitions must be seen through the lens of welfare-enhancing regulation of financial practices. In today’s age of financial engineering, utilizing many of the legal and financial advances of the past two decades, it is quite easy to synthesize the contracts that classical and contemporary jurists forbade from the ones that they have permitted. This financial engineering approach was always possible to some extent, but recent advances have reduced transaction costs substantially. In premodern societies, when transaction costs of ruses to circumvent prohibitions were substantial, prohibitions could serve their intended regulatory purpose, albeit imperfectly. In today’s age of low-cost financial engineering, the regulatory substance of prohibitions, contract conditions, and other contract-based juristic rulings has been diluted to the point of rendering the contract-based jurisprudence incoherent".

Incoherence of Contract-Based Islamic Financial Jurisprudence in the Age of Financial Engineering

Concept Paper on Shariah Governance Framework for Islamic Financial Institutions

Concept Paper on Shariah Governance Framework for Islamic Financial Institutions
Bank Negara Malaysia, May 2010

This concept paper was released recently and its proposed framework is divided into six sections:

Section I - General Requirements of Shariah Governance Framework
General requirements of the Shariah governance structure that describes the essential key functional or key organs

Section II - Oversight, Accountability & Responsibility
Outlines the level of accountability and responsibility of the board of directors, Shariah committee and management of the IFI.

Section III - Independence
Aims at safeguarding the independence of the Shariah committee in ensuring sound Shariah decision, and emphasis on the role of the board of directors in recognizing the independence of the Shariah committee.

Section IV - Competency
Highlights requirements and expected competencies to ensure key functions are capable of implementing Shariah governance.

Section V - Confidentiality & Consistency
Minimum set of rules that emphasis on the importance of observing and preserving confidentiality and improving consistency by the Shariah committee.

Section VI - Shariah Compliance & Research Functions
Prescribe the functions of the internal Shariah review, Shariah audit, Shariah risk management process and the Shariah research functions.

Concept Paper on Shariah Governance Framework for Islamic Financial Institutions

An Analytical Review of Different Concepts of Riba (Interest) in the Sub-Continent

An Analytical Review of Different Concepts of Riba (Interest) in the Sub-Continent
Aziz, Farooq, Mahmud, Muhammad and Karim, Emadul (2008)
Federal Urdu University of Arts, Science and Technology,
Karachi Campus, Karachi, Pakistan, Khadam Ali Shah
Bukhari Institute of Technology (KASBIT)

Abstract: "The traditional concept of Riba (interest) is an excess amount on loan, which creditor receives from debtor on the repayment of loan. There is almost a consensus on the sprit of this concept that it is traditional thought or school; but along with that some other point of views also exist, which present Riba, in somewhat different ways, will be termed as non-traditional approach in this paper. Both of these schools are agreed on the point that, Riba is just restricted to debt, and the increment on it is Riba; but the main difference among these is that: former approach claims that, each and every addition on loan, regardless of purpose and time duration of loan is Riba; but, the later approach demand’s some room for that on different grounds. Actually both of them do not have any sound base. When the concept of unearned income (the income, which is not the result of human labor), is a recognized fact in Islamic economics in different forms, like: ijara (rent), Mudoraba and Mazara’a (Share Cropping); then definitely no logical reason is left to avoid excess income on loan. Both approaches are just unable to give a concrete concept of Riba."

An Analytical Review of Different Concepts of Riba (Interest) in the Sub-Continent

ISRA Journal - Volume 1

The inaugural issue of the ISRA International Journal of Islamic Finance (ISRA journal) has been available since December so we are unsure how we could miss it! The journal can be downloaded for free (no registration required) but it is the academic rigor and second-to-none peer review process that makes it really impressive. Take note that "the practitioner’s article discusses cases studies from the real life experience of the practitioner author. The Journal also highlights select currently ongoing research projects conducted by ISRA’s researchers under ‘Research Notes’. Though the research projects are not complete its introduction to the outside will engage those who may be doing parallel or similar research".

ISRA International Journal of Islamic Finance
Volume 1, Issue 1

December 2009

Academic Articles
Financial Crisis: Risks and Lessons for Islamic Finance
- Habib Ahmed
The Global Financial Crisis, Risk Management and Social Justice in Islamic Finance
- M. Kabir Hassan and Rasem N. Kayed
Shari'ah Governance for Islamic Financial Institutions
- Rodney Wilson
Shari'ah Parameters on the Islamic Foreign Exchange Swap as a Hedging Mechanism in Islamic Finance
- Asyraf Wajdi Dusuki

Practitioners' Articles
From “Asset-backed” to “Asset-light” Structures: The Intricate History of Sukuk
- Rafe Haneef

Research Notes
Islamic Pricing Benchmark
- Edib Smolo
Alternative Dispute Resolution in Islamic Finance: Legal Challenges and the Way Forward
- Hakimah Yaacob
A Synthesis of Shari'ah Issues and Market Challenges in the Application of Wa'ad in Equity-based Sukuk
- Shabnam Mokhtar
Shari'ah Parameters of Islamic Derivatives in Islamic Banking and Finance
- Sherin Kunhibava

ISRA Journal - Volume 1

Binding Wa'd - Is it Permissible?

Here is some background information on wa'd as part of our Linkedin discussion, the reason we are highlighting this item is the fact that a variety of products/solutions are based on wa'd and we are bound to see more products coming into the market using this type of contract. The issue is mainly whether or not you can pay for a promise (or more broadly whether you can provide some type of consideration for a promise), since the wa'd in its simple form is no more than a unilateral promise.

The Binding Unilateral Promise (wa’d) in Islamic Banking Operations: Is it Permissible for a Unilateral Promise (wa’d) to be Binding as an Alternative to a Proscribed Contract?
Rafic Yunus Al-Masri
Assistant Professor, Islamic Economics Research Centre
Faculty of Economics, King Abdulaziz University
Jeddah – Saudi Arabia

Binding Wa'd - Is it Permissible?

English Language Fatwa Databases

This is the culmination of our modest attempts to find available and free online resources for English speakers wanting to study Islamic Finance.

Many other sources are available only in hardcopy (e.g., Sh Yusuf Talal DeLorenzo's books from IIBI, Dr Wahbah al Zuhayli's two volumes on Islamic Finance, the AAOIFI Shariah Standards), but there are still some very good sources of fataawa available online and Insh'Allah this offers readers some benefit.

Fataawa Banks for Fiqh Al Mu'amalat

• Al Baraka Group Fatwa Bank (Product-Specific Fatawa)
• Assembly of Muslim Jurists of America
• Bank Negara Malaysia
• Fatwa Management System: World Fatwa Mgt and Rsrch Inst, Universiti Sains Islam Malaysia
• Harvard Islamic Finance Information Program (HIFIP) (Free Login Needed)
• International Shari'ah Research Academy for Islamic Finance (ISRA)
• IIBF Shariah Advisory Unit Fatwas
• IslamQA Principles of Fiqh-Transactions
• IslamWeb Fatwa Center (Transactions and Inheritance)
• Monzer Kahf Fatawa Listing
• Malaysia International Islamic Financial Centre (MIFC) (see The Shariah Resolution Book, for product-specific fataawa/resolutions)
• Securities Commission Shariah Advisory Council Resolutions

Fataawa Banks --General (i.e., Not Islamic Finance Specific)

• Fatwa Online
• Fatwa Islam
• IslamOnline

Lists of Links to Fataawa Banks (Many out of date)

• Fatwa Resources, Konsultasi Muamalat
• Fatwa Resources, Muslim Investor.com
• Rulings on Islamic Banking, IslamicBanking.com
• Mejelle (Ottoman Codification of Hanafi Fiqh)
• Risala (Maliki Fiqh)
  

Thanks as well to IslamicBanking.com, Konsultasi Muamalat, and MuslimInvestor.com, and to Kamal Abdelkarim Hassan Kamal Hassan and Siti Faridah from IBFnet.

Please send in comments and updates. The only way we can keep this "fresh" is if you help alert us of bad links and new developments! JAK!

English Language Fatwa Databases

The Concept of Promise and Bilateral Promise in Financial Contracts : A Fiqhi Perspective

The Concept of Promise and Bilateral Promise in Financial Contracts : A Fiqhi Perspective
Assoc. Prof. Dr. Mohamad Akram Laldin, Executive Director, ISRA
ISRA Research Paper (No. 4/2009)

"The topic of promises needs clarification and precise determination. It is vitally important because promises are relevant to a great number of contemporary issues. The paper thus reviews the types of promises in the Shari’ah and juristic opinion as to whether promises are legally binding. It concludes by highlighting nine (9) Shariah parameters that must be applied in allowing promises. It argues that if fulfilling promises is a binding obligation, then promises should be not be used indiscriminately; rather, parameters must be laid down to govern their use. Among the suggested parameters are that promises should not displace and impede the objectives of contracts. For example, partnership contracts are intended to make the contracting parties share in the profit and loss; therefore, promises should not be used to negate this essential feature. For the remaining 8 parameters, download the paper!"

The Concept of Promise and Bilateral Promise in Financial Contracts : A Fiqhi Perspective