This book, Introduction to Islamic Banking and Finance: An Economic Analysis, covers the basic principles of Islamic economics and finance. It discusses both the theory of Islamic economics and finance as well as the applications in the design of instruments of finance as well as Islamic financial institutions. The book enables its readers to gain an understanding of the structures and operations of Islamic banking, Islamic capital market investments, risk management, and taxation for Islamic banking contracts.
The book sets forth the following objectives:
- An overview of the principles of Islamic economics and understand their contrast with mainstream economics.
- An overview of basic rules of commercial law in Islamic jurisprudence.
- An overview of basic principles, structures and operations of Islamic banking both in the liability side and asset side operations.
- An understanding of Islamic capital market instruments and investment management including some unique activities peculiar to Islamic investments, such as stock screening and income purification.
- An illustration of different Takaful structures, which are applied for risk management by individuals and corporates.
Supplementary materials are available to instructors who adopt this textbook for their courses. These include:
- Testbank
- PowerPoint Slides
- Self-Assessment Questions (SAQ) Answer Key
Sample Chapter(s)
Foreword
Chapter 1: Introduction to Islamic Finance
Contents:
- Foundations of Islamic Finance:
- Introduction to Islamic Finance
- Islamic View on Capital Allocation
- Theory and Application of Islamic Banking Products:
- Product Structures in Islamic Banking
- Economics of Islamic Banking Product Structures
- Islamic Capital and Money Markets:
- Islamic Equity Investments
- Sukuk in Islamic Capital Markets
- Islamic Money Market
- Risk Management in Islamic Finance:
- Takaful
- Risk Management in Islamic Banks
- Islamic Banking: The Way Forward:
- Islamic Social Finance
- Islamic Banking in the Digital Era
- Mainstreaming Islamic Finance: The Way Forward
Readership: University students and faculty members in the field of Islamic Banking and Finance, practitioners in the field of Islamic Banking and Islamic Finance.
Professor Dr M Kabir Hassan is Professor of Finance in the Department of Economics and Finance in the University of New Orleans. He currently holds three endowed Chairs-Hibernia Professor of Economics and Finance, Hancock Whitney Chair Professor in Business, and Bank One Professor in Business- in the University of New Orleans. Professor Hassan is the winner of the 2016 Islamic Development Bank (IDB) Prize in Islamic Banking and Finance. Professor Hassan received his BA in Economics and Mathematics from Gustavus Adolphus College, Minnesota, USA, and M.A. in Economics and PhD in Finance from the University of Nebraska-Lincoln, USA respectively.
Professor Hassan has done consulting work for the World Bank, International Monetary Fund, African Development Bank, Transparency International-Bangladesh (TIB), Islamic Development Bank, United Nations Development Program (UNDP), Government of Turkey and many private organizations. Professor Hassan has been elected a Board Member of Ethics and Governance Committee and Education Board of the Accounting and Auditing Organization for the Islamic Financial Institutions (AAOIFI).
Professor Hassan has over 350 papers published as book chapters and in refereed academic journals. Professor Hassan has been honored by the fellow members of Academy of Economics and Finance for life-long contribution to teaching and research in 2016 and 2018 respectively. Professor Hassan has an H-index of 63 from Google Scholar. For his outstanding research and scholarly work, Dr Hassan has been recognized with Lifetime Achievement Award by UNO Research Council in 2019. Professor Hassan has supervised 62 doctoral theses at the University of New Orleans and acted as External examiners for 49 dissertations. Professor Hassan has numerous teaching awards for his outstanding teaching from the University of New Orleans and outside academic organizations. He has also received 2018 University of New Orleans Gordon H "Nick" Mueller International Leadership Medallion, 2019 UNO Life-time Academic Achievement, and 2019 University of Louisiana System Outstanding Faculty Member Award.
Professor Hassan is the Editor-in-Chief of International Journal of Islamic and Middle Eastern Finance and Management and serves as Associate Editor or Senior Editor of several academic Journals. Professor Hassan has also edited and published seventeen books. Dr Hassan has provided academic leaderships to several organizations such as President of Southwest Finance Association (SWFA), Southwestern Society of Economist (SSE), Academy of International Business-US Southwest and Academy of Economic and Development Studies on Bangladesh (AEDSB).
Salman Ahmed Shaikh holds PhD in Economics from the National University of Malaysia. In Islamic Economics, he has published research papers in top international journals, presented researches in research conferences held in Malaysia, Turkey, Brunei, Indonesia and Pakistan and has also contributed several book chapters in book publications by Routledge, Springer, Palgrave, Edward Elgar and Gower Publishing. He is also on Editorial Advisory Board of several research journals. He also worked as Editor for the 2019 Global Islamic Finance Report for Cambridge Islamic Institute of Islamic Finance. Furthermore, Emerald editorial team selected two of his papers for two separate journals as Highly Commended Paper in the 2018 Emerald Literati Awards. He had also won paper prize in World Islamic Finance Forum 2018.
Selim Kayhan is a Professor of Economics at Necmettin Erbakan University, Turkey. He earned his PhD in Economics from Erciyes University, Turkey. He spent two years as Visiting Professor at Michigan State University and University of New Orleans. He specializes in monetary macroeconomics and publishes a good number of articles in highly reputed journals. He has also worked as a consultant to Turkish Government and presented paper in international conferences.
