Islamic Finance Practices (eBook)

Preface 5
Contents 9
List of Contributors 12
List of Figures 14
List of Tables 16
1 History of Economic Thought Hidden Within the Archives of Abrahamic Religions 18
1 Introduction 18
2 Market Regulations and Ethics: Religiously Informed Regulative Environment 22
3 Judaism, It’s Effects and Influence on Market Regulations 23
4 The Ethical Code of Christianity and Its Paternal Approach on Market Regulations 26
5 Conclusion 33
Bibliography 36
2 Exploring the Epistemology of  Utility Function in Islamic Economics: Foundation of Islamic Finance 39
1 Introduction 39
2 Concept of Utility in Islamic Economics 40
3 Conclusion 54
Bibliography 55
3 Islamic Approach to Corporate Social Responsibility in Scientific Research with CSR Overview in Banking Sector of Bosnia and Herzegovina 57
1 Introduction 58
2 Islamic Approach to Corporate Social Responsibility 62
3 CSR Based Projects—Some Cases from Banking Sector of Bosnia and Herzegovina 66
4 Islamic Banking and CSR in Bosnia and Herzegovina 68
5 The Use of Databases as a Scientific Tool 69
6 Process and the Results of the Research 70
7 Conclusions 78
References 88
4 Potentials of Waqfs from a Socio-Economic Perspective: The Case of Bosnia and Herzegovina 93
1 Introduction 94
2 Literature on Waqfs 96
3 Background on Waqfs in Bosnia and Herzegovina 98
4 Methodology and Data 101
5 Empirical Findings 102
5.1 Institutional Belonging 104
5.2 Perception of Waqf 104
5.3 Role of the Muslim Community in Creating Awareness About Waqf 108
5.4 A Motivation for Waqf Endowments 109
5.5 Second Stage Analysis 116
6 Conclusions 118
Appendix: Results of the Second Stage Analysis 119
References 125
5 Efficient Diversification with Shariah-Compliant Stocks: Evidence from the South-East European Capital Markets 127
1 Introduction 128
2 Literature Review 128
3 Methodology 132
4 Results and Discussion 133
5 Conclusion 143
References 144
6 Credit Risk Assessment for an Islamic Bank in Bosnia and Herzegovina 146
1 Introduction 146
2 Basel Rules Review and Summary 149
3 Banking Legislation in Bosnia and Herzegovina 154
4 Islamic Banking Data 154
4.1 Research Methodology and Model Building 156
5 Credit Risk Assessment Model 156
6 Future Work 159
7 Conclusion 160
References 160
7 Market Rent Value as a Basis for Profit Margin Calculation in Home Financings Based on Diminishing Musharakah with Ijarah: Possibilities for Implementation in Bosnia and Herzegovina 163
1 Introduction 164
2 Profit Margin Calculation in Diminishing Musharakah and Ijarah Financings in Bosna Bank International 165
3 Market Rent as a Basis for Profit Margin Calculation 166
4 Comparison of the Existing Method of Calculating the Profit Margin at BBI and the Model Based on Market Rent Value 167
5 Analysis of Current Market Rents, Profit Margins in BBI and Interest Rates in the Federation of Bosnia and Herzegovina 171
6 Combination of the Two Models—The Best Solution in Current Market Conditions 177
7 Conclusion 179
References 180
Index 182