CW: Socially Responsible Investments: Methodology, Risk Exposure and Performance

Socially Responsible Investments: Methodology, Risk Exposure and Performance
Jenke Ter Horst, Chendi Zhang, Luc Renneboog
June 2007

CW: Socially Responsible Investments: Methodology, Risk Exposure and Performance

Can Bursa Malaysia’s Suq al-Sila’ (Commodity Murabahah House) Resolve the Controversy over Tawarruq?

Can Bursa Malaysia’s Suq al-Sila’ (Commodity Murabahah House) Resolve the Controversy over Tawarruq?
Assoc. Prof. Dr. Asyraf Wajdi Dusuki, Head of Research Affairs Department, ISRA
ISRA Research Paper (No. 10/2010)

"In 2009, Bursa Malaysia launched a new trading platform called Suq al-Sila’ or Commodity Murabahah House. It was introduced to facilitate certain Islamic financial transactions, particularly commodity murabahah based on tawarruq. This platform is claimed to provide genuine commodity transactions where possession and delivery of the commodity can take place without any hindrance, as opposed to the controversial widespread form of tawarruq that uses platforms like the London Metal Exchange (LME). This paper discusses the practice of tawarruq using Bursa Malaysia’s Commodity Murabahah House. In particular the paper comprehensively examines the debates over tawarruq which eventually lead to the OIC Fiqh Academy’s declaration that organized tawarruq is impermissible. This paper concludes that despite the criticisms and some unresolved Shari‘ah matters entangling the practice of tawarruq, the effort made by Bursa Malaysia to introduce a platform such as Commodity Murabahah House is commendable. Furthermore, since the nature of modern organized tawarruq may not strictly comply with Shari‘ah principles, the reasons behind using this facility should be carefully taken into consideration, especially situations of real urgency and cases of need."

Can Bursa Malaysia’s Suq al-Sila’ (Commodity Murabahah House) Resolve the Controversy over Tawarruq?

Financial Stability: The Significance and Distinctiveness of Islamic Banking in Malaysia

Financial Stability: The Significance and Distinctiveness of Islamic Banking in Malaysia

Ewa Karwowski

University of London - Levy Economics Institute Working Paper

January 2009

Abstract: "This paper explores the significance of Islamic banking in Malaysia for stability in the country's economy as a whole. Neither conventional theory nor Islamic economics puts forward a systematic explanation of financial intermediation; consequently, neither is capable of identifying destabilizing elements in the system. Instead, a flow-of-funds approach similar to Minsky's own is applied to the (post-) modern consumption-led) business cycle and financial (and asset) market.

Malaysia's structural current account surplus contributes to the overcapitalization of domestic firms. This in turn finances a financial (as opposed to an industrial), consumption-led (instead of investment-led) business cycle, where banking favors destabilizing asset price inflation. Islamic banks operating interdependently with conventional ones contribute to economic destabilization channeling surplus funds from the corporate to the household sector."

Financial Stability: The Significance and Distinctiveness of Islamic Banking in Malaysia

The New Mainstream: Islamic Private Equity and Competitiveness

Is Islamic private equity under-rated or over-sold? Untapped or ill-deployed? There is very little data available on the viability, success (or for that matter failure) of current and previous efforts in this space. While advertorial in nature, this piece suggests a variety of opportunities are available due to three key factors: Demand, Means and Support. However it suggests that in order to activate this there are four challenges faced by the industry: Standardization, Engineering, Education and Human Capital.

The New Mainstream: Islamic Private Equity and Competitiveness
Seera Investment Bank
November 2008

The New Mainstream: Islamic Private Equity and Competitiveness

CW: Socially Responsible Investments in Germany, Switzerland and the United States : An Analysis of Investment Funds and Indices

Socially Responsible Investments in Germany, Switzerland and the United States : An Analysis of Investment Funds and Indices
Michael Schroder
September 2003

CW: Socially Responsible Investments in Germany, Switzerland and the United States : An Analysis of Investment Funds and Indices

Adopting and Measuring Customer Service Quality in Islamic Banks

Adopting and Measuring Customer Service Quality in Islamic Banks: A Case Study of Bank Islam Malaysia Berhad

by Shahril Shafie, Dr Wan Nursofiza Wan Azmi and Professor Sudin Haron

KLBS - Working Paper Series 001

2004

Adopting and Measuring Customer Service Quality in Islamic Banks

3rd IFSB Public Lecture on Financial Policy and Stability

3rd IFSB Public Lecture on Financial Policy and Stability

In conjunction with the 15th Meeting of its Council, the Islamic Financial Services Board (IFSB) is organising its 3rd Public Lecture on Financial Policy and Stability on 23 November 2009 in Kuala Lumpur, Malaysia. Bank Negara Malayia (BNM) is kindly hosting both the Meeting of the Council and the Public Lecture.

Mr. Paul Koster, Chief Executive of Dubai Financial Services Authority, and Mr. Jean Pierre Sabourin, Chief Executive Officer, Malaysia Deposit Insurance Corporation will speak in the Public Lecture, which is scheduled to be held at 1:30pm – 5.15pm.

You can view the downloadable programme at the IFSB website. Should you wish to attend the both the Public Lecture and the High Level Conference, or either one of these events, please fill up the online registration form, or email/fax in your details to the IFSB Secretariat.

For more information contact:
Ms. Puteri Bahrun
Email: puteri@ifsb.org
Tel: + 603 2698 4248 ext: 114

3rd IFSB Public Lecture on Financial Policy and Stability

Islamic Finance - Podcasts & Webcasts

Here we feature a collection of educational multimedia materials (both video webcasts as well as audio podcasts) offered by the CFA Institute. This provides an opportunity to learn about various concepts of Islamic finance, topics include structuring sukuk, corporate governance, and the role of standard setting bodies in Islamic finance (this is also complemented by various introductory pieces as well). The list of experts includes Professor Rodney Wilson, Shaykh Yusuf Talal DeLorenzo, Rushdi Siddiqui, Professor Simon Archer, Professor Rifaat Karim, Richard de Belder, and Mohammed Amin (among others).

This list will expand in the near future as they plan to add new webcasts periodically. Similarly we plan to highlight much more multimedia content in the near future.

These webcasts are available for free but a registration is required for non-members of CFA Institute (creating an account to login will be created instantly).

With thanks to Usman Hayat for his assistance with the materials.

Islamic Finance - Podcasts & Webcasts

DFSA - Enhancing Clarity and Accessibility of Islamic Finance Rules

Consultation Paper No. 66 Enhancing Clarity and Accessibility of Islamic Finance Rules

The DFSA is proposing to restructure the rules relating to Islamic finance to better promote the visibility and accessibility of the DFSA's regulatory regime (as it applies to Islamic financial activities conducted within the DIFC).

Comments and feedback can be sent to (note deadline is December 4th):
Dhammika Amukotuwa
Associate Director, Policy and Legal Services, DFSA
Email: DAmukotuwa@dfsa.ae

The relevant files are as follows:
Consultation Paper in PDF Format
Appendix 1 — Proposed New IFR Module
Appendix 2 — Sample of a Virtual Handbook

DFSA - Enhancing Clarity and Accessibility of Islamic Finance Rules

The Future of Takaful: Potholes in the Streets of Gold?

The Future of Takaful: Potholes in the Streets of Gold

by Peter Hodgins and Caroline Jaffer

Clyde & Co

August 2009

The Future of Takaful: Potholes in the Streets of Gold?

CW: Socially Responsible Investment Screening: Strong Evidence of No Significant Cost for Actively Managed Portfolios

Socially Responsible Investment Screening: Strong Evidence of No Significant Cost for Actively Managed Portfolios
Bernell K. Stone, John B. Guerard, Jr., Mustafa N. Gultekin, Greg Adams
June 2001

CW: Socially Responsible Investment Screening: Strong Evidence of No Significant Cost for Actively Managed Portfolios

Islamic Banks and Wealth Creation

Islamic Banks and Wealth Creation
Prof. Dr. Abdul Ghafar Ismail
ISRA Research Paper (No. 9/2010)

"This paper aims to examine how Islamic banks create wealth: how customers as depositors invest their money through the banks; how the banks invest the funds at their disposal; and how economic agents such as individuals, firms and government use these funds. It also examines how this money generates profit, which is then distributed to Islamic banks and depositors, and hence preserves and develops the wealth (mal) of economic agents. It also raises the larger question of whether Islamic banks contribute to the well-being of society by focusing on return to depositors and to shareholders."

Islamic Banks and Wealth Creation