Books

Islam proposes that the banking systems that operate on the basis of an ex ante fixed rate of interest to replaced by a profit-sharing system in which the rate of return to the financial resources is not known and is not fixed prior to the undertaking of the transaction.

While in Islam interest is forbidden, trade and profits are permissible and in fact encouraged. The papers in this volume all address one or more of the basic questions at the theoretical level.

They represent a start in the attempt to introduce rigor into the analysis of Islamic banking and finance, thereby clarifying the nature of the basic relationships underlying the system.

Written by A.L.M. Abdul Gafoor, this is the second of a series of three books which, taken together, are expected to provide a comprehensive banking system that addresses the concerns and needs of Muslims today. The other titles are: Interest-free Commercial Banking and Commercial Banking in the presence of Inflation. In that system time and savings deposits will not bear any interest but the capital will be guaranteed.

The salient features of the proposed system are:1) There is no interest on deposits, but capital is guaranteed.2) Lending and investing are treated differently; loans are interest-free but carry a service charge, while investing is on a profit-and-loss-sharing (mudaraba) basis.Commercial banks will grant loans but they will not engage in investment-financing. Investment-financing will be done through investment banks and investment companies.3) Value erosion of capital due to inflation is compensated.

Written by A.L.M. Abdul Gafoor, this book studies the problem of eliminating riba (interest) from the banking system from basic principles. Using a general model of the commercial bank lending process, it shows that riba can be eliminated from modern commercial banking without resort to drastic measures. It presents a commercial banking system that is free of riba, and yet is fully viable and compatible with current practices in the conventional system.

A discussion of the monetary policy and banking in Islam.

Umer Chapra: Towards a Just Monetary System: A Discussion of Money, Banking, and Monetary Policy in the Light of Islamic Teachings.

This collection of papers deals with the distinguishing characteristics of an Islamic economy which have a bearing on monetary and fiscal policies and the objectives and instruments of monetary policy in an Islamic economy.

A unique subject-wise collection of 'Fatwas' (legal opinions), relating to the operations of Islamic banks.

The Compendium is based on Fatwas issued by the religious boards of Islamic banks.

It took two years to collect, classify and translate the Fatwas from Arabic to English. The Arabic and English texts appear in the Compendium side by side.

Tries to make the case that Islamic economics is not a genuine answer to the world's economic problems, and that it is a political movement by Islamists.

Timur Kuran: Islam and Mammon: The Economic Predicaments of Islamism.

"Valuable reading for anyone who wants to understand Islamic banking and its formal and informal societal and political relationships."

"This timely book demonstrates how in-depth academic scholarship can make a signal contribution to a major topical issue of public policy."

A comprehensive survey of Islamic banking. . . . Recommended for anyone interested in the theory and practice of Islamic banking. Outstanding in contextualizing the evolution of and demand for Islamic banking on its path through our common history.

This important book critically examines the traditional interpretation of "riba (translated as usury of interest) and the attempts of modern Islamic banks to put that interpretation into practice.

In the past decade, Islamic finance has grown at rates exceeding 20% a year. It is now a $200 billion industry, with operations in over 70 countries.

This book explains the paradox of a system rooted in the medieval era thriving in the global economy.

Mirroring the expansion of wealth in the Middle East and Asia and a surge in Islamic self-identity, Islamic banking practices have either become the law of the land or coexist and compete with Western practices in at least six countries.

Although the principles of Shari'ah require banks and financial institutions to be structured on an interest-free basis, this does not mean that such institutions are charitable concerns. As long as a person advancing money expects to share in the profits earned (or losses incurred) by the other party, a stipulated proportion of profit is legitimate.

The philosophy is enshrined in the traditional Islamic concepts of musharakah and mudarabah, along with their specialized modern variants murabahah, ijarah, salam, and istisna'. This guide to Islamic finance clearly delineates the all-important distinctions between Islamic practices and conventional procedures based on interest.

Why are people continually surprised to discover that money is "just" meaning? Mutual Life, Limited spends time among those who, in acknowledging the fictions of finance, are making money anew. It documents ongoing efforts to remake money and finance by Islamic bankers who seek to avoid interest and local currency proponents who would stand outside of national economies. It asks how alternative moneys both escape and reenact dominant forms of money and finance, and reflects critically on their broader implications for scholarship.

This book provides an overview of the practice of Islamic finance and
the historical roots that define its modes of operation. The focus of
the book is analytical and forward-looking.

Virginia Morris and Brian Ingram have authored abook on Islamic Investing.

This first-of-its-kind guide provides the information and guidance that Muslims need to make informed investment choices while conducting their financial lives in accordance with Islamic principles. A concise 64 pages, the guide is an ideal introduction for Muslim investors, as well as an essential resource for financial professionals who work with Muslim clients.

Book Review:

MANY books have been written on Islamic financial markets but Introduction to Islamic Finance: Theory and Practice by Zamir Iqbal, Abbas Mirakhor (John Wiley) is the first book to introduce all of the essential topics in one volume.

Are non-Muslim customers ready for Islamic Financing? In the book Understanding Islamic Banking: the Value Proposition That Transcends Cultures, Joseph DiVanna and expert in global banking, examines how the underlying principles of Islamic banking provides a framework for contemporary retail banks to enable investors of any faith to develop a sense of a higher purpose. The essentials of a bank's value proposition, such as brand identity, innovation, investment strategy, and the generation of investor value are attributes readily identifiable by Muslims and non-Muslims.