113 research outputs found

    Translating Islamic Law: the postcolonial quest for minority representation

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    This research sets out to investigate how culture-specific or signature concepts are rendered in English-language discourse on Islamic, or ‘shariʿa’ law, which has Arabic roots. A large body of literature has investigated Islamic law from a technical perspective. However, from the perspective of linguistics and translation studies, little attention has been paid to the lexicon that makes up this specialised discourse. Much of the commentary has so far been prescriptive, with limited empirical evidence. This thesis aims to bridge this gap by exploring how ‘culturalese’ (i.e., ostensive cultural discourse) travels through language, as evidenced in the self-built Islamic Law Corpus (ILC), a 9-million-word monolingual English corpus, covering diverse genres on Islamic finance and family law. Using a mixed methods design, the study first quantifies the different linguistic strategies used to render shariʿa-based concepts in English, in order to explore ‘translation’ norms based on linguistic frequency in the corpus. This quantitative analysis employs two models: profile-based correspondence analysis, which considers the probability of lexical variation in expressing a conceptual category, and logistic regression (using MATLAB programming software), which measures the influence of the explanatory variables ‘genre’, ‘legal function’ and ‘subject field’ on the choice between an Arabic loanword and an endogenous English lexeme, i.e., a close English equivalent. The findings are then interpreted qualitatively in the light of postcolonial translation agendas, which aim to preserve intangible cultural heritage and promote the representation of minoritised groups. The research finds that the English-language discourse on Islamic law is characterised by linguistic borrowing and glossing, implying an ideologically driven variety of English that can be usefully labelled as a kind of ‘Islamgish’ (blending ‘Islamic’ and ‘English’) aimed at retaining symbols of linguistic hybridity. The regression analysis confirms the influence of the above-mentioned contextual factors on the use of an Arabic loanword versus English alternatives

    Islamic Finance: Fit for Purpose or Mere Replication?

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    The form versus substance issue is not a new phenomenon in Islamic finance. Beyond question, one of the verses emphasising the superiority of substance over form is surah al-Baqarah: ‘Righteousness is not that you turn your faces toward the east or the west, but righteousness is one who believes in Allah, the last day, the angels, the Book, and the prophets and gives wealth, in spite of love for it, to relatives, orphans, the needy, the traveller, the who ask for help, and freeing slaves…’(2:177) In the verse, it is stated that the true goodness and respect for Allah is not to turn its face towards east or west during the worship. Put differently, the Qur’an idealises an understanding wider than a mere formalism that is not based on the virtues of faith, religion, and morality. In this article, it is discussed whether the understanding of the substance over form, which is adopted in the sources of Islam, is fully implemented or not. In this article, first, prohibitions against riba (as a guiding principle of Islamic finance) in the Quran and its historical roots are examined to understand what the purpose of these restrictions is by looking at Islamic finance philosophy. Second, various contract types which have been used to circumvent the prohibition of riba through hilah and their historical origins are also be criticised. Lastly, some Islamic finance contracts, which are frequently used in Islamic finance, and which are similar to the contracts in conventional finance in terms of economic outcome, are examined. It is also evaluated to what extent the Islamic finance sector, which is structured in line with the classical view on riba, is unique. Also, the criticism of Islamic finance being same as conventional finance both economically and legally is examined. Islamic finance contributes to the expansion of financial inclusion and the growth of the financial industry. Islamic finance may enhance financial access by broadening the scope of available financial products and promoting the inclusion of individuals who lack access to financial services. Islamic banking has a strong emphasis on partnership-style financing, which may be helpful in enhancing access to capital for small businesses. It also contributes to enhancing financial stability due to its relatively uncorrelated financial products operating in line with the risk-sharing and avoidance of leverage principles. However, the Islamic finance industry needs to develop new innovative products to differentiate itself from conventional banking and accommodate the concerns of investors regarding the authenticity of the system

    Basel III: Implications of Capital and Liquidity Regulations on Financial Stability during Economic Depression.

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    The dynamic global financial system has made it necessary to implement adequate regulatory measures that can effectively guarantee financial stability at the national and international levels. This thesis consists of three self-contained analytical chapters that focus on the effectiveness of evolving financial regulations in addressing systemic risk within the financial system. Despite numerous regulatory reforms introduced following the 2008 GFC, they are still concerns over the role of these regulations in mitigating complex issues related to systemic risk. The first study focuses on international and national regulatory frameworks in the context of conventional, hybrid, and Islamic banking. It analyses the guidance provided by the Basel Committee on Banking Supervision (BCBS) and the Islamic Financial Services Board (IFSB) and examines the differences in the treatment of credit, liquidity, and systemic risk across four countries. The IFSB converts BCBS guidance to ensure compliance with Sharia principles for Islamic banks. Further insights show variations in liquidity and capital requirements imposed on banks in different countries, highlighting the need for countryspecific regulations to address the unique risks. The second study uses data from emerging market economies to investigate the relationship between capital and liquidity regulations under Basel III and their impact on default risk and systemic risk. The study addresses whether the new liquidity and capital requirements, such as the net stable funding ratio and higher capital adequacy ratio, contribute to alleviating the default risk and systemic risk in emerging market economies. The third study focuses on the relationship between credit and liquidity risks and their impact on bank default risk. It also addresses the effect of bank liquidity creation on systemic risk across different types of banks. The findings suggest that while credit and liquidity risks are positively related, no significant relationship exists. The impact of credit and liquidity risks on bank default risk is significant for conventional and hybrid banks, while bank size and capital adequacy ratio play a greater role in the stability of Islamic banks. The joint interaction between credit and liquidity risk negatively influences banking stability. The key findings demonstrate that Basel III's liquidity requirements, such as the Net Stable Funding Ratio (NSFR), play an important role in forecasting banks' default probability and mitigating systemic risk. The insights gathered emphasise the importance of incorporating new mitigating measures, including NSFR, leveraging requirements, countercyclical buffers, and globally systemically important institution surcharges to promote financial stability. Additionally, it demonstrates the relevance of liquidity creation in determining bank stability and its implications for systemic risk. This study offers substantial contributions to the growing body of literature by highlighting the differences in regulatory frameworks, the importance of this approach in developing bank risk profiles, and how they are adequately addressed. The study also contributes to understanding how financial stability can be enhanced while reducing systemic liquidity risk. The study shows that banks, regulators, and policymakers must collaborate adequately across all levels to align risk management and improve regulations and guidelines. This includes sharing information and fostering coordination at the international level

    Feasibility of Zakat-based Crowdfunding for Marginalized Farmers in Bangladesh

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    The arrangement of funds and financing for the agriculture sector in Bangladesh is still considered in crisis that is coupled with concurrent uncertain situations like population growth and natural disasters. Therefore, specific financial terms such as Zakat that are based on and practiced in Islam, the religious origination of the major-ity of Bangladeshi, at the same time highly appreciated and carried out by other countries are found well complementary to agricultural project financing. The pur-pose of this study is to explore the feasibility of using zakat-based crowdfunding as a means of supporting marginalized farmers in Bangladesh. This study employs a case study approach, using secondary data sources to conduct a thematic analysis of za-kat-based crowdfunding for marginalized farmers. The findings of the study indicate that zakat-based crowdfunding can be a viable solution to support marginalized farmers in Bangladesh. The relevance of the study is in place due to the urgency to solve the problems of agricultural financing in Bangladesh. The study recommends the establishment of a zakat-based crowdfunding platform that caters specifically to the needs of marginalized farmers in Bangladesh. However, the study also identifies some limitations, such as the lack of primary data and the context of generalizability. Despite these limitations, the study concludes that zakat-based crowdfunding can effectively support marginalized farmers in Bangladesh, and further research in this area is warranted

    The extent of Kuwaiti Islamic banks restrict the use of Islamic financing tools in their financial operations: a field study

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    This research aims to identify the extent to of Kuwaiti Islamic banks adhere to the use of Islamic financing tools in their financial operations. The study population consists of all (5) banks listed on the Kuwait Stock Exchange. As for the study sample, (100) respondents were selected from Financial managers, accountants, and workers in finance and investment departments work in these banks. The questionnaire was used as a tool for collecting primary data. The results showed that Kuwaiti Islamic banks adhere to the use of Islamic financing tools represented in Murabaha, Musharaka and Mudaraba in their financial operations to a high degree. The study recommended that Kuwaiti Islamic banks should be encouraged to play a more role in Murabaha operations and find appropriate solutions to technical obstacles and culture-related procedures that prevent the provision of Islamic financing through Murabaha

    Shariah: An efficiency analysis

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    The oil shock of 1973 brought newfound wealth to a group of ultraconservative Muslims. This wealth coincided with the growing demand for shariah compliant products. The prohibition against interest is not new but has been around for millennia. This dissertation attempted to ascertain if Shariah compliance came at a cost to investors and if it was possible to be both just and efficient. We illustrate using Stiglitz and Cheung's sharecropping models that a profit and loss sharing contract can be as efficient as its alternatives (or more so), so there is no implicit tax on lenders who prefer a share of profit rather than a fixed return on a loan. The growth in Islamic finance has improved consumer awareness not only amongst Islamic investors, but also among ethical investors. Investors are now offered a chance to gain returns, without having to sacrifice their beliefs. Islamic finance may suffer from learning effects, portfolio managers certainly ‘learn by doing'. But once they have learned it seems that their portfolios need not underperform the market. However, it must be recognized that a lack of standardization and diverse scholar opinions can adversely affect the growth of the industry

    Risk and regulation of Islamic banks : the Indonesian experience

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    This thesis focuses on Islamic banking in Indonesia. It considers the related challenges of sharia compliance by Islamic banks and their regulation and supervision in Indonesia’s dual banking system. Crucial to the prudent regulation and supervision of banking is the control and monitoring of risks that could jeopardise a nation’s financial stability. Since compliance with sharia principles is the raison d’etre of Islamic banks, all their instruments and activities must be based on Islamic law. Unfortunately, sharia compliance gives rise to unique risks for Islamic banks not faced by conventional banks in Indonesia’s dual banking system. These include inconsistencies between fatwas, unique reputational risks which can cascade into liquid risks, and inefficiencies in the manifold regulatory framework governing Islamic banks. This thesis analyses the tension between classical Islamic principles required of bank contracts and the modern needs of businesses and the community. It also critically examines the less studied issue of developing an Islamic banking regulatory and supervisory framework that considers the risk pressures faced by Islamic banks operating in a financial sector dominated by conventional banking. This thesis argues that a middle way is possible for contemporary Islamic banks, which encourages prudent risk management whilst adhering to the evolving pluralistic form of Islamic law in Indonesia. The thesis critically assesses the extent to which global financial standards of the Basel Accords have been followed by Islamic banks in Indonesia with respect to their regulation, supervision, and risk management, in order to highlight the unresolved tensions in the multiple regulatory and supervisory institutions, viz. the state’s Financial Service Authority and the private agency of Sharia Supervisory Boards operating under the auspices of the National Sharia Board of the Majelis Ulama Indonesia. In this regard, one of the major challenges for Islamic banks is the potentially difficult institutional and Islamic legal reforms required to fully apply the international standards set down in the Basel Accords. Again, this thesis proposes a middle ground approach that accommodates modification of the existing financial regulatory and supervisory system in line with international best practice to provide more comprehensive guidelines for prudential regulation transparency

    Notes on banking activity from islamic law perspective

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    : A indústria islâmica de serviços financeiros, onde o sector bancário assume maior relevo, tem conhecido um crescimento exponencial, suscitando um crescendo de interesse pelo seu estudo. Tal interesse começa por assentar no facto de a respectiva actividade ser exercida segundo os ditames da Xaria, que se afastam, em larga medida, dos princípios enformadores do exercício da actividade bancária na forma convencional. A actividade financeira islâmica dispensa um maior relevo, nomeadamente, a instrumentos financeiros que enfatizam a partilha de risco, facto que se revelou de grande importância por ter ajudado a evitar muitas das mais severas consequências das recentes crises financeiras, por exemplo, evitando que os bancos islâmicos fossem expostos ao subprime ou a activos tóxicos. O aprofundamento da informação, sobre as regras e princípios estruturantes que enformam as finanças islâmicas, revela-se de grande relevância e actualidade, com vista ao realce das suas diferenças fundamentais relativamente à actividade financeira convencional e à averiguação da sua eventual alternatividade, ou complementaridade, relativamente aos sistemas convencionais. A escassez de textos escritos em língua portuguesa, sobre a matéria, também justifica a apresentação do presente texto, em singelo e preliminar contributo, através do qual se pretende proporcionar: i) uma nota sobre a evolução histórica da banca islâmica; ii) o enunciado do seu quadro principiológico estruturante; iii) a análise sumária de alguns dos principais produtos e serviços bancários disponibilizados pelos bancos islâmicos; iv) uma nota especial sobre a específica actividade de recepção de depósitos e a concessão de crédito, bem como sobre os contratos de garantia; v) a categorização dos principais contratos islâmicos e suas utilizações mais comuns; e vi) a referenciação das principais diferenças entre a banca islâmica e a banca convencional, após o que será formulada uma síntese conclusiva._____________________________________________________________________________________________The Islamic financial services industry, where the banking sector is most important, has experienced exponential growth, arousing a growing interest in its study. Such interest lies on the fact that the respective activity is carried out in accordance with the dictates of Shariah, which largely depart from the principles underlying the exercise of banking activity in the conventional way. Islamic financial activity emphasizes the use of risk-sharing financial instruments, a fact that has proved to be of great importance as it has helped to avert many of the most severe consequences of recent financial crises, for example by preventing Islamic banks exposure to subprime or toxic assets. The deepening of information on the structuring rules and principles that shape Islamic finance is a relevant and current subject, with a view to highlighting its fundamental differences in relation to conventional financial activity and to investigating the possibility of that approach being alternative, or complementary, with respect to conventional systems. 41 REVISTA ELECTRÓNICA DE DIREITO – FEVEREIRO 2022 – N.º 1 (VOL. 27) – WWW.CIJE.UP.PT/REVISTARED The scarcity of Portuguese written texts on the subject also justifies the presentation of this text, in a simple and preliminary contribution, which intends to provide: i) a note on the Islamic banking historical evolution; ii) the statement of its structuring principles framework; iii) a summary analysis of some of the main banking products and services provided by Islamic banks; iv) a special note on the specific activity of receiving deposits and granting credit, as well as on guarantee contracts; v) the categorization of the main Islamic contracts and their most common uses; and vi) a reference to the main differences between Islamic and conventional banking, after which a conclusive synthesis will be formulated
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