Search results for: Islamic banks
967 Board of Directors Gender Diversity, Board Committees and Financial Performance: Evidence from Nigeria
Authors: Aliyu Aminu Baba, Yahaya Danjuma, Ahmad Sule Liman-Katagum
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This paper examines the effects of the board of directors’ diversity on firm performance. We investigate the relationship between the number of women directors on the board and important board committees and financial performance measured as return on assets. Our statistical analysis supports the theoretical position of the effect diversity on financial performance. These studies enhanced the previous studies on the board of director’s gender diversity, board committees, and its impacts on firm financial performance. The study uses data from eighteen (18) Nigerian commercial banks. The study finds that banks with a higher number of females directors on board and board committees have higher Earning per share(EPS)) and Return on Assets (ROA). It also finds that some banks did not even have a single female on its corporate board. Evidence imply that decisions concerning the appointment of women to corporate boards should be on criteria and financial performance. It is recommended that banks can enhance their financial performance by having more female directors on their corporate board.Keywords: board of directors, gender diversity, board committees, financial performance
Procedia PDF Downloads 309966 Evaluating Problems Arose Due to Adoption of Dual Legal Framework in Regulating the Transactions under Islamic Capital Market with Special Reference to Malaysia
Authors: Rafikoddin Kazi
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Almost all the major religions of the world condemn the transactions based on interest which promotes self-centered and materialistic thinking. Still, it is amazing to note that it has become the tradition of transaction at world level hence it is called traditional financial system. The main feature of this system is that it considers economic aspects of the transaction only. This system supports the economic development and not the welfare of humankind. However, it is worth mentioning the fact that, except Islamic financial system no other financial system stood in front of it as a viable alternative system. Although many countries have tried to create financial infrastructure and system, still the Malaysian Islamic financial system has got its own peculiarity. It has made tremendous progress in creating sound Islamic Financial system. However, the historical aspect of this country which has passed through Islamic and traditional financial system has got its own advantages and disadvantages. The advantageous factor is that, despite having mix and heterogeneous culture, it has succeeded in creating Islamic Financial System based on the dual legal system to satisfy the needs of multi-cultural factors. This fact has proved that Islamic Financial System does not need purely Muslim population. However, due to adoption of the dual legal system, several legal issues have been taken place. According to this system, the application of Islamic Law has been limited only up to some family and religious matters. The rest of the matters are being dealt with under the traditional laws, the principles and practices of which are different from that of the Islamic Legal System. The matter becomes all the more complicated when the cases are partially or simultaneously concerned with traditional vis-à-vis Islamic Laws as it requires expertise in both the legal systems. However, the educational principles and systems are different in respect of both the systems. To face this problem, Shariah Advisory Council has been established. But the Multiplicity of Shariah authorities without judicial power has created confusion at various levels. Therefore, some experts have stressed the need for improving, empowering the Islamic financial, legal system to make it more integrated and holistic. In view of the above, an endeavor has been made in this paper to throw some light on the matters related to the adoption of the dual legal system. The paper is conceptual in nature and the method adopted is the intensive survey of literature thereby all the information has been gathered from the secondary sources.Keywords: Islamic financial system, Islamic legal system, Islamic capital market (ICM) , traditional financial system
Procedia PDF Downloads 192965 Exploring the Possibility of Islamic Banking as a Viable Alternative to the Conventional Banking Model
Authors: Lavan Vickneson
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In today’s modern economy, the conventional banking model is the primary banking system used around the world. A significant problem faced by the conventional banking model is the recurring nature of banking crises. History’s record of the various banking crises, ranging from the Great Depression to the 2008 subprime mortgage crisis, is testament to the fact that banking crises continue to strike despite the preventive measures in place, such as bank’s minimum capital requirements and deposit guarantee schemes. If banking crises continue to occur despite these preventive measures, it necessarily follows that there are inherent flaws with the conventional banking model itself. In light of this, a possible alternative banking model to the conventional banking model is Islamic banking. To date, Islamic banking has been a niche market, predominantly serving Muslim investors. This paper seeks to explore the possibility of Islamic banking being more than just a niche market and playing a greater role in banking sectors around the world, by being a viable alternative to the conventional banking model.Keywords: bank crises, conventional banking model, Islamic banking, niche market
Procedia PDF Downloads 275964 Net Fee and Commission Income Determinants of European Cooperative Banks
Authors: Karolína Vozková, Matěj Kuc
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Net fee and commission income is one of the key elements of a bank’s core income. In the current low-interest rate environment, this type of income is gaining importance relative to net interest income. This paper analyses the effects of bank and country specific determinants of net fee and commission income on a set of cooperative banks from European countries in the 2007-2014 period. In order to do that, dynamic panel data methods (system Generalized Methods of Moments) were employed. Subsequently, alternative panel data methods were run as robustness checks of the analysis. Strong positive impact of bank concentration on the share of net fee and commission income was found, which proves that cooperative banks tend to display a higher share of fee income in less competitive markets. This is probably connected with the fact that they stick with their traditional deposit-taking and loan-providing model and fees on these services are driven down by the competitors. Moreover, compared to commercial banks, cooperatives do not expand heavily into non-traditional fee bearing services under competition and their overall fee income share is therefore decreasing with the increased competitiveness of the sector.Keywords: cooperative banking, dynamic panel data models, net fee and commission income, system GMM
Procedia PDF Downloads 317963 Risk Management in an Islamic Framework
Authors: Magid Maatallah
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The problem is, investment management in modern conditions boils down to risk management which is very underdeveloped in Islamic financial theory and practice. Add to this the fact that, in Islamic perception, this is one of the areas of conventional finance in need of drastic reforms. This need was recently underlined by the story of Long Term Capital Management (LTCM ), ( told by Roger Lowenstein in his book, When Genius Failed, Random House, 2000 ). So we face a double challenge, to develop Islamic techniques of risk management and to see that these new techniques are free from the ills with which conventional methods are suffering. This is different from the challenge faced in the middle of twentieth century, to develop a method of financial intermediation free of interest.Risk was always there, especially in business. But industrialization brought risks unknown in trade and agriculture. Industrial production often involves long periods of time .The longer the period of production the more the uncertainty. The scope of the market has expanded to cover the whole world, introducing new kinds of risk. More than a thousand years ago, when Islamic laws were being written, the nature and scope of risk and uncertainty was different. However, something can still be learnt which, in combination with the modern experience, should enable us to realize the Shariah objectives of justice, fairness and efficiency.Keywords: financial markets, Islamic framework, risk management, investment
Procedia PDF Downloads 543962 The Feasibility of Economic Science in Islam With an Emphasis on Sadr's Vantage Point
Authors: Yahya Jahangiri, Ali Almasi
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Currently capitalism is one of the most important economic issues discussed by great scholars around the world. But Islamic approach, regarding this issue may differ both western and eastern views. A greatest scholar in Islamic economy ‘especially in Shia’ is Martyr Muhammad Baqir Al-Sadr. He wrote “Our economy” (Iqtisaduna) to present an economic point of view according to the Islamic teachings. In this regard firstly we will mention three approaches which are common in Muslim scullers about the economic science and then the main approach which is Sadr's view is described here. His claim explains that Islam and capitalism are in conflict with each other. And finally he explains the relationship between Islam and economy and he suggests the Islamic point of view in economy and its foundations as a solution for economic problems which we face today.Keywords: Islam, economic science, capitalism, Martyr Sadr
Procedia PDF Downloads 318961 Compilation of Islamic Law as Law Applied Religious Courts in Indonesia (Responding to Changes in Religious Courts Authority)
Authors: Hamdan Arief Hanif, Rahmat Sidiq
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Indonesia is a country of law, the legal system adopted by Indonesia is a civil law system. A major feature of the civil law is the codified legislation. Meanwhile the majority of society Indonesia are Muslims, whilst Islamic law itself having the sources written in Qur'an, Sunnah and the opinion of Muslim scholars, generally not codified in book form of legislation that is easy on the set as a reference. in Indonesia, many scholars have different opinions in decisions so that there is no legal certainty in Muslim civil cases, so the need for legal codification, which, as the source of the judges in deciding a case, especially a case in religious courts. This paper raised the topic of discussion which offers a solution to the application of the codification of the Islamic Law which became the core resources in delivering a verdict against Islamic civil related issue; codification usually called a compilation of Islamic Law. Compilation of Islamic Law is highly recommended as a core reference for the judges in religious courts in Indonesia. This compilation which includes a collection of large number of opinions scholars (book of fiqh) that existed previously and are ripened in deduce in order to unify the existing differences. This paper also discusses how the early formation of the compilation and as the right solution in order to create legal certainty and justice especially for the muslim community in Indonesia.Keywords: Islamic law, compilation, law applied core, religious court
Procedia PDF Downloads 351960 Waad Bil Mourabaha Pricing
Authors: Dchieche Amina, Aboulaich Rajae
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In this work, we will modelize Waad Bil Mourabaha contract. This islamic contract provides the right to buy goods at a future date with a Mourabaha. Waad is a promise of sale or purchase of goods, declared in a unilateral way. In spite of the divergence between some schools of Islamic law about the Waad, this contract will allow us to study sophisticated and interesting contract: Waad Bil Mourabaha that can be used for hedging. In order to price Waad Bil Mourabaha contract, we will use an adapted Black and Scholes model using the Shariah compliant assumptions.Keywords: Islamic finance, Black-Scholes model, call option, risks, hedging
Procedia PDF Downloads 505959 A Multi-Attribute Utility Model for Performance Evaluation of Sustainable Banking
Authors: Sonia Rebai, Mohamed Naceur Azaiez, Dhafer Saidane
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In this study, we develop a performance evaluation model based on a multi-attribute utility approach aiming at reaching the sustainable banking (SB) status. This model is built accounting for various banks’ stakeholders in a win-win paradigm. In addition, it offers the opportunity for adopting a global measure of performance as an indication of a bank’s sustainability degree. This measure is referred to as banking sustainability performance index (BSPI). This index may constitute a basis for ranking banks. Moreover, it may constitute a bridge between the assessment types of financial and extra-financial rating agencies. A real application is performed on three French banks.Keywords: multi-attribute utility theory, performance, sustainable banking, financial rating
Procedia PDF Downloads 458958 Issues in Implementing ISO 9002 from the Islamic Perspective (ISI 2020)
Authors: Ahmad Masduki Bin Selamat, Kang Chia Yang
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The International Standard Organization (ISO) is an international consensus on good management practice. It is derived from the Greek word “isos” meaning equal. ISO is aimed to give organization guidelines on what bring quality management system that leads to continuous improvement. The need of quality product is essential these days, especially in the manufacturing and service sectors. The requirement to produce good product is demanded, hence the certification of ISO enables the company to gain the trust from the public. Due to this, organizations whether government or private sectors in Malaysia are going for the ISO certification. However recently there has been an introduction of Islamic standard known as Islamic Standard Institute 2020 (ISI 2020). The ISI standards emphasize more on values that should be in the employees’ mind. By possessing good values, employees will work only for the betterment of the company. Currently only the feelings of being paid for the job exist in the employees’ mind. The non-Malays like Chinese and others, which comprise 40% of the sample size, are not aware about the existence of any Islamic quality system. As for the Malay managers, they support the Islamic quality systems. For them such values are encouraged by religion. By imitating religion, Allah promises a better life in this world and hereafter. Even though ISI 2020 is still new but the majority of Malays would support the need of Islamic quality system. Our findings suggest that integration of these two-quality systems running parallel would bring a better result.Keywords: International Standard Organization (ISO), Islamic standard, quality, ISI 2020
Procedia PDF Downloads 406957 Evaluating Performance of Value at Risk Models for the MENA Islamic Stock Market Portfolios
Authors: Abderrazek Ben Maatoug, Ibrahim Fatnassi, Wassim Ben Ayed
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In this paper we investigate the issue of market risk quantification for Middle East and North Africa (MENA) Islamic market equity. We use Value-at-Risk (VaR) as a measure of potential risk in Islamic stock market, for long and short position, based on Riskmetrics model and the conditional parametric ARCH class model volatility with normal, student and skewed student distribution. The sample consist of daily data for the 2006-2014 of 11 Islamic stock markets indices. We conduct Kupiec and Engle and Manganelli tests to evaluate the performance for each model. The main finding of our empirical results show that (i) the superior performance of VaR models based on the Student and skewed Student distribution, for the significance level of α=1% , for all Islamic stock market indices, and for both long and short trading positions (ii) Risk Metrics model, and VaR model based on conditional volatility with normal distribution provides the best accurate VaR estimations for both long and short trading positions for a significance level of α=5%.Keywords: value-at-risk, risk management, islamic finance, GARCH models
Procedia PDF Downloads 588956 Synchronized Vehicle Routing for Equitable Resource Allocation in Food Banks
Authors: Rabiatu Bonku, Faisal Alkaabneh
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Inspired by a food banks distribution operation for non-profit organization, we study a variant synchronized vehicle routing problem for equitable resource allocation. This research paper introduces a Mixed Integer Programming (MIP) model aimed at addressing the complex challenge of efficiently distributing vital resources, particularly for food banks serving vulnerable populations in urban areas. Our optimization approach places a strong emphasis on social equity, ensuring a fair allocation of food to partner agencies while minimizing wastage. The primary objective is to enhance operational efficiency while guaranteeing fair distribution and timely deliveries to prevent food spoilage. Furthermore, we assess four distinct models that consider various aspects of sustainability, including social and economic factors. We conduct a comprehensive numerical analysis using real-world data to gain insights into the trade-offs that arise, while also demonstrating the models’ performance in terms of fairness, effectiveness, and the percentage of food waste. This provides valuable managerial insights for food bank managers. We show that our proposed approach makes a significant contribution to the field of logistics optimization and social responsibility, offering valuable insights for improving the operations of food banks.Keywords: food banks, humanitarian logistics, equitable resource allocation, synchronized vehicle routing
Procedia PDF Downloads 58955 Function of Quranic Family Lifestyle in the Development of Modern Islamic Civilization
Authors: Zeinabossadat Hosseini, Fateme Qorbani
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The universal community has suffered from the lack of a sustainable and prosperous civilization in the world, and human distance from religious doctrines exposes the civilization of society to decline and collapse. To build a sustainable Islamic civilization, it is essential to understand and strengthen the core foundations of this subject. Islam, which claims to be integral in ensuring human prosperity and the creation of a new Islamic civilization, it can only develop this civilization if it has the necessary foundations. On the other hand, the family is one of the most important and effective foundations for effective individual and community life, and according to the influential role of the family on human behavioral and cognitive domains, it is impossible to define and explain the development of Islamic civilization without regard to the family category. The family can be effective in this important matter through its direct and indirect role in the education of individuals, and its members have the highest interaction and impact on each other. Development of the teachings of Islam in the form of verses and traditions can guide people towards the Islamic lifestyle and thus Islamic civilization and the Pure life (Tayyibah life-Al-Nahl/97). This article provides a descriptive-analytical approach to the conclusion that modern Islamic civilization promises the prosperity of the world and the hereafter. It will bring peace and prosperity to the world as well as advancement, fight against poverty, unity, and solidarity of Muslims, preservation of human dignity, as well as the growth of spirituality. It can also be deduced that the foundations of Islamic civilization in Qur'anic Tayyibah life and in today's term, the Islamic lifestyle, can be identified and implemented in the family structure, And the components of this blissful life can be found in this focus. The Tayyibah life will be realized by relying on the right faith and practice, paying attention to the rulings, divine command mentioned in the verses, as well as the traditions, altruism, nurturing a commitment to the community.Keywords: family, development of modern Islamic civilization, quranic lifestyle, Tayyibah life
Procedia PDF Downloads 142954 Accounting and Auditing Standards Influence on Income Smoothing Perspective in Islamic Financial Institutions
Authors: Fatma Ezzahra Kateb, Neila Boulila Taktak, Mohamed Kabir Hassan
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We examine the impact of Islamic accounting and auditing standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) on the income smoothing perspective of Islamic financial institutions located in the Middle East and North Africa region between 2013 and 2018. Based on General Least square regression for panel data, we find a significant and positive relationship between intentional income smoothing and earning persistence and cash flow predictability in all models. However, we discovered that AAOIFI accounting standards (FAS) had a negative and significant effect on intentional income smoothing and earning persistence. As a result, the income smoothing efficiency is lower for IFIs that use FASs than IFIs that use IFRSs. Our findings emphasize the need for specific standards to enhance the relevance of financial reports disclosed by Islamic financial institutions.Keywords: AAOIFI, financial reporting quality, income smoothing perspective, MENA countries
Procedia PDF Downloads 81953 A Contemplation of Iranian Islamic Architecture in the Age of Globalization
Authors: Maziar Asefi, Safa Salkhi Khasraghi
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Despite the great development of Islamic Architecture in its conquered lands, its active performance in a vast geographical area, faded by the advent of industrial age. Now in the Information Age with great advances in technologies and increased interconnection among many societies, every aspect of life is affected by rapid spreading phenomenon called globalization which resulted in the world with less regional and cultural boundaries. So being proudly globalized in the past and becoming inactive in today's globalized world puts Islamic Architecture in a great challenge. Indeed, its important role has changed from transmitting cultural values to the world to importing dominated values even defectively. This study aimed to determine the factors influenced this controversial situation of Islamic Architecture, especially in current age. The paper focuses on performance of Islamic architecture in relation with Globalization as an ancient process. So qualitative method in terms of logic analysis was chosen to evaluate how Islamic architecture of Iran has contributed in Globalization subject in different time periods. Several works were analyzed as case studies in three categories: religious, monumental, commercial utilities and climate element. Theoretical and practical findings indicate that there is a mutual relationship between Islamic Architecture and Globalization which is transformed from the active mode to passive mode gradually in three periods of Globalization: proto, modern and communication Globalization. The proposed solution in the response to this challenge is finding a solution that makes an equilibrium between science, art, and technology, as well as taking the global performance of architecture.Keywords: Islamic architecture, globalisation, the relationship among art, science and technology, Iranian architecture
Procedia PDF Downloads 295952 The Economic System (Islam) and Riba's Prohibition on Historical Perspective
Authors: Risanda Alirastra Budiantoro, Riesanda Najmi Sasmita, Sri Herianingrum
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Allah has given the guidance in the form of Islam for Muslim to take and lead all the aspects of life including the economic activity. The Islamic economic system is believed to be the answer to the economic problems that exist at this time. The goal is to achieve falah in kaffah by not doing some economic activities that are in violation as prescribed by Islam. An example for this is riba. Discourse on riba can be said ‘classical’ both in the development of Islamic thought and in Islamic civilization because riba often occurs in all aspects of public life, especially economic transactions (in Islam called muamalah). Riba is an additional retrieval, either in a sale and purchase transaction or lending in a false or contrary to the principle of muamalah in Islam. Prohibition of riba is obtained from various sources by the Qur'an and Hadith Rasulullah SAW, so the scholars firmly and clearly defined the prohibition of riba because there are exploitative elements that can harm the others. So, this study is aimed to identify Islamic economic system and the prohibition of riba in historical perspective. From the results of this study, it is expected to be a good reference for the reader to understand the Islamic economic system and riba in the future.Keywords: economics system, riba, historical perspective, economy
Procedia PDF Downloads 311951 The Effect of Job Insecurity on Attitude towards Change and Organizational Citizenship Behavior: Moderating Role of Islamic Work Ethics
Authors: Khurram Shahzad, Muhammad Usman
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The main aim of this study is to examine the direct and interactive effects of job insecurity and Islamic work ethics on employee’s attitude towards change and organizational citizenship behavior. Design/methodology/approach: The data was collected from 171 male and female university teachers of Pakistan. Self administered, close ended questionnaires were used to collect the data. Data was analyzed through correlation and regression analysis. Findings: Through the analysis of data, it was found that job insecurity has a strong negative effect on the attitude towards change of university teachers. On the contrary, job insecurity has no significant effect on organizational citizenship behavior of university teachers. Our results also show that Islamic work ethics does not moderate the relationship of job insecurity and attitude towards change, while a strong moderation effect of Islamic wok ethics is found on the relationship of job insecurity and organizational citizenship behavior. Originality/value: This study for the first time examines the relationship of job insecurity with employee’s attitude towards change and organizational citizenship behavior with the moderating effect of Islamic work ethics.Keywords: job security, islamic work ethics, attitude towards change, organizational citizenship behavior
Procedia PDF Downloads 469950 Modeling Default Probabilities of the Chosen Czech Banks in the Time of the Financial Crisis
Authors: Petr Gurný
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One of the most important tasks in the risk management is the correct determination of probability of default (PD) of particular financial subjects. In this paper a possibility of determination of financial institution’s PD according to the credit-scoring models is discussed. The paper is divided into the two parts. The first part is devoted to the estimation of the three different models (based on the linear discriminant analysis, logit regression and probit regression) from the sample of almost three hundred US commercial banks. Afterwards these models are compared and verified on the control sample with the view to choose the best one. The second part of the paper is aimed at the application of the chosen model on the portfolio of three key Czech banks to estimate their present financial stability. However, it is not less important to be able to estimate the evolution of PD in the future. For this reason, the second task in this paper is to estimate the probability distribution of the future PD for the Czech banks. So, there are sampled randomly the values of particular indicators and estimated the PDs’ distribution, while it’s assumed that the indicators are distributed according to the multidimensional subordinated Lévy model (Variance Gamma model and Normal Inverse Gaussian model, particularly). Although the obtained results show that all banks are relatively healthy, there is still high chance that “a financial crisis” will occur, at least in terms of probability. This is indicated by estimation of the various quantiles in the estimated distributions. Finally, it should be noted that the applicability of the estimated model (with respect to the used data) is limited to the recessionary phase of the financial market.Keywords: credit-scoring models, multidimensional subordinated Lévy model, probability of default
Procedia PDF Downloads 448949 Imami Shia and Democracy
Authors: Hamid Reza Shariatmadari
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The Muslims who believe in twelve Imams and believe that their twelfth Imam is now hidden, because of their kind of consideration of immune Imam as their unique canonical authority for interpretation of Islam, are subject of these important questions; how can you be democratic? And can you speak of democracy as the best model of governing? Answering this question, we can talk firstly about the nature of democracy and realize it as a way and mechanism not as a philosophy of identity and secondly we can refer to the nature and functions of Imam in Shiism and thirdly we will focus on the age of Ghaybah (Or concealment of Imam). In such a time we can or have to combine domination of Islamic Faqis (Islamic Jurists) and democracy which is known in Shiite Iran for instance as religious democracy.Keywords: Shiism, concealment of Imam, Islamic Jurists, Democracy
Procedia PDF Downloads 486948 The Contribution of Translation to Arabic and Islamic Civilization during the Golden Age (661–1258)
Authors: Smail Hadj Mahammed
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Translation is not merely a process of conveying the meaning from one particular language into another to overcome language barriers and ensure a good understanding; it is also a work of civilization and progress. Without the translation of Greek, Indian and Persian works, Arabic and Islamic Civilization would not have taken off, and without the translations of Arabic works into Latin, and then into European languages, the scientific and technological revolution of the modern world would not have taken place. In this context, the present paper seeks to investigate how the translation movement contributed to the Arabic and Islamic Civilizations during the Golden Age. The research paper consists of three major parts: the first part provides a brief historical overview of the translation movement during the golden age, which witnessed two important eras: the Umayyad and Abbasid eras. The second part shows the main reasons why translation was a prominent cultural activity during the Golden Age and why it gained great interest from the Arabs. The last part highlights the constructive contribution of translation to the Arabic and Islamic Civilization during the period (661–1258). The results demonstrate that Arabic translation movement was unprecedented in the transmission of knowledge in the whole history of humankind and that translation during the Golden Age had significantly assisted in enriching the Arabic and Islamic civilizations, which had absorbed major and important scientific works of old Greek, Indian and Persian civilizations.Keywords: Arabic and Islamic civilization, contribution, golden age, translation
Procedia PDF Downloads 108947 Analyzing the Empirical Link between Islamic Finance and Growth of Real Output: A Time Series Application to Pakistan
Authors: Nazima Ellahi, Danish Ramzan
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There is a growing trend among development economists regarding the importance of financial sector for economic development and growth activities. The development thus introduced, helps to promote welfare effects and poverty alleviation. This study is an attempt to find the nature of link between Islamic banking financing and development of output growth for Pakistan. Time series data set has been utilized for a time period ranging from 1990 to 2010. Following the Phillip Perron (PP) and Augmented Dicky Fuller (ADF) test of unit root this study applied Ordinary Least Squares (OLS) method of estimation and found encouraging results in favor of promoting the Islamic banking practices in Pakistan.Keywords: Islamic finance, poverty alleviation, economic growth, finance, commerce
Procedia PDF Downloads 337946 Ethical Finance and Islamic Finance: Particularities, Possible Convergence and Potential Development
Authors: Safa Ougoujil, Sidi Mohamed Rigar
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Economics is not an exact science. It cannot be from the moment it is a social science that concerns society organization, a human science that depends on the behavior of the men and women who make a part of this society. Therefore, it cannot ignore morality, the instinctive sense of good and evil, the natural order which place us between certain values, and which religion often sheds light on. In terms of finance, the reference to ethics is becoming more popular than ever. This is naturally due to the growing financial crises. Finance is less and less ethical, but some financial practices have continued to do so. This is the case of ethical finance and Islamic finance. After attempting to define the concepts of ethical finance and Islamic finance, in a period when financial innovation seeks to encourage differentiation in order to create more profit margins, this article attempts to expose the particularities, the convergences and the potentialities of development of these two sensibilities.Keywords: convergences, ethical finance, Islamic finance, potential development
Procedia PDF Downloads 189945 Negation of Insinuation Rule on the Ideas of Imam Khomeini (RA)
Authors: Seyed Jafar Hosseini, Rahim Vakilzadeh, Hassan Movassagi
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‘Negation of insinuation’ or ‘negation of dominance’ Rule is considered as one of the most important principles governing the policies and external relations of Islamic and religious countries. The stable and influential role which this rule puts on the behavior and policies of the Islamic religion and foreign policies of Islamic countries shows the importance of the presented topic. Among Islamic scholars, Imam Khomeini (RA) has been paid most attention to this rule on governing issues. In the present study, we are going to investigate the nature and dimensions of Negation of insinuation rule in Imam Khomeini's ideas with an analytical and descriptive method. The obtained results show that Negation of insinuation rule is an effective and main guidance in Imam's thoughts and behavior.Keywords: negation of insinuation Rule, Imam Khomeini (RA), cultural domination, political domination, economic domination
Procedia PDF Downloads 310944 A Look at the History of Calligraphy in Decoration of Mosques in Iran: 630-1630 AD
Authors: Cengiz Tavşan, Niloufar Akbarzadeh
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Architecture in Iran has a continuous history from at least 5000 BC to the present, and numerous Iranian pre-Islamic elements have contributed significantly to the formation of Islamic art. At first, decoration was limited to small objects and containers and then progressed in the art of plaster and brickwork. They later applied in architecture as well. The art of gypsum and brickwork, which was prevalent in the form of motifs (animals and plants) in pre-Islam, was used in the aftermath of Islam with the art of calligraphy in decorations. The splendor and beauty of Iranian architecture, especially during the Islamic era, are related to decoration and design. After the invasion of Iran by the Arabs and the introduction of Islam to Iran, the arrival of the Iranian classical architecture significantly changed, and we saw the Arabic calligraphy decoration of the mosques in Iran. The principles of aesthetics in the art of calligraphy in Iran are based precisely on the principles of the beauty of ancient Iranian and Islamic art. On the other hand, after Islam, calligraphy was one of the most important sources of Islamic art in Islam and one of the important features of Islamic culture. First, the calligraphy had no cultural meaning and was only for decoration and beautification, it had the same meaning only in the inscriptions; however, over time, it became meaningful. This article provides a summary of the history of calligraphy in the mosques (from the entrance to Islam until the Safavid period), which cannot ignore the role of the calligraphy in their decorative ideas; and also, the important role that decorative elements play in creating a public space in terms of social and aesthetic performance. This study was conducted using library studies and field studies. The purpose of this study is to show the characteristics of architecture and art of decorations in Iran, especially in the mosque's architecture, which reaches the pinnacle of progress. We will see that religious beliefs and artistic practices are merging and trying to bring a single concept.Keywords: Islamic art, Islamic architecture, decorations in Iranian mosques, calligraphy
Procedia PDF Downloads 261943 The Reason Why Al-Kashi’s Understanding of Islamic Arches Was Wrong
Authors: Amin Moradi, Maryam Moeini
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It is a widely held view that Ghiyath al-Din Jamshid-e-Kashani, also known as al-Kashi (1380-1429 CE), was the first who played a significant role in the interaction between mathematicians and architects by introducing theoretical knowledge in Islamic architecture. In academic discourses, geometric rules extracted from his splendid volume titled as Key of Arithmetic has uncritically believed by historians of architecture to contemplate the whole process of arch design all throughout the Islamic buildings. His theories tried to solve the fundamental problem of structural design and to understand what makes an Islamic structure safe or unsafe. As a result, al-Kashi arrived at the conclusion that a safe state of equilibrium is achieved through a specific geometry as a rule. This paper reassesses the stability of al-Kashi's systematized principal forms to evaluate the logic of his hypothesis with a special focus on large spans. Besides the empirical experiences of the author in masonry constructions, the finite element approach was proposed considering the current standards in order to get a better understanding of the validity of geometric rules proposed by al-Kashi for the equilibrium conditions of Islamic masonry arches and vaults. The state of damage of his reference arches under loading condition confirms beyond any doubt that his conclusion of the geometrical configuration measured through his treaties present some serious operational limits and do not go further than some individualized mathematical hypothesis. Therefore, the nature of his mathematical studies regarding Islamic arches is in complete contradiction with the practical knowledge of construction methodology.Keywords: Jamshid al-Kashani, Islamic architecture, Islamic geometry, construction equilibrium, collapse mechanism
Procedia PDF Downloads 119942 Corporate Governance Role of Audit Committees in the Banking Sector: Evidence from Libya
Authors: Abdulaziz Abdulsaleh
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This study aims at identifying the practices that should be taken into consideration by audit committees as a tool of corporate governance in Libyan commercial banks by investigating various perceptions on this topic. The study is based on a questionnaire submitted to audit committees ‘members at Libyan commercial banks, directors of internal audit departments as well as members of board of directors at these banks in addition to a number of external auditors and academic staff from Libyan universities. The study reveals that the role of audit committees has to be shifted from traditional areas of accounting to a broader role including functions related to financial reporting, audit planning, support the independence of internal and external auditors, acting as a channel of communication between external auditors and board of directors, reviewing external audit, and evaluating internal control systems. Although the study is a starting point in developing a framework of good audit committees’ practices in Libya, it is believed that the adoption of its results can result in enhancing the corporate governance practices not only in the banking sector but also in the entire corporate sector in Libya.Keywords: audit committees, corporate governance, commercial banks, Libya
Procedia PDF Downloads 391941 Islamic Research Methodology (I-Restmo): Eight Series Research Module with Islamic Value Concept
Authors: Noraizah Abu Bakar, Norhayati Alais, Nurdiana Azizan, Fatimah Alwi, Muhammad Zaky Razaly
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This is a concise research module with the Islamic values concept proposed to a group of researches, potential researchers, PhD and Master Scholars to prepare themselves for their studies. The intention of designing this module is to help and guide Malaysian citizens to undergone their postgraduate’s studies. This is aligned with the 10th Malaysian plan- MyBrain 15. MyBrain 15 is a financial aid to Malaysian citizens to pursue PhD and Master programs. The program becomes one of Ministry of Education Strategic Plan to ensure by year 2013, there will be 60,000 PhD scholars in Malaysia. This module is suitable for the social science researchers; however it can be useful tool for science technology researchers such as Engineering and Information Technology disciplines too. The module consists of eight (8) series that provides a proper flow of information in doing research with the Islamic Value Application provided in each of the series. This module is designed to produce future researchers with a comprehensive knowledge of humankind and the hereafter. The uniqueness about this research module is designed based on Islamic values concept. Researchers were able to understand the proper research process and simultaneously be able to open their minds to understand Islam more closely. Application of Islamic values in each series could trigger a broader idea for researchers to examine in greater depth of knowledge related to humanities.Keywords: Eight Series Research Module, Islamic Values concept, Teaching Methodology, Flow of Information, Epistemology of research
Procedia PDF Downloads 389940 West African Islamic Civilization: Sokoto Caliphate and Science Education
Authors: Hassan Attahiru Gwandu
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This study aims at surveying and analyzing the contribution of Sokoto scholars or Sokoto Caliphate in the development of science and technology in West Africa. Today, it is generally accepted that the 19th century Islamic revivalism in Hausaland was a very important revolution in the history of Hausa society and beyond. It is therefore, as a result of this movement or Jihad; the Hausaland (West Africa in general) witnessed several changes and transformations. These changes were in different sectors of life from politics, economy to social and religious aspect. It is these changes especially on religion that will be given considerations in this paper. The jihad resulted is the establishment of an Islamic state of Sokoto Caliphate, the revival Islam and development of learning and scholarship. During the existence of this Caliphate, a great deal of scholarship on Islamic laws were revived, written and documented by mostly, the three Jihad leaders; Usmanu Danfodiyo, his brother Abdullahi Fodiyo and his son Muhammad Bello. The trio had written more than one thousand books and made several verdicts on Islamic medicine. This study therefore, seeks to find out the contributions of these scholars or the Sokoto caliphate in the development of science in West Africa.Keywords: Sokoto caliphate, scholarship, science and technology, West Africa
Procedia PDF Downloads 287939 The Impact of the Windows Opening on the Design of Buildings in Islamic Architecture
Authors: Salma I. Dwidar, Amal A. Abdel-Sattar
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The window openings are the key to the relationship between the inside and the outside of any building. It is the eye that sees from, the lunges of the construction, and the ear to hear. The success of the building, as well as the comfort of the uses, depends mainly on this relationship. Usually, windows are affected by human factors like religious, social, political and economic factors as well as environmental factors like climatic, aesthetic and functional factors. In Islamic architecture, the windows were one of the most important elements of physiological and psychological comfort to the users of the buildings. Windows considered one of the main parameters in designing internal and external facade, where the window openings occupied a big part of the formation of the external facade of the buildings. This paper discusses the importance of the window openings and its relationship to residential buildings in the Islamic architecture. It addresses the rules that have been followed in the design of windows in Islamic architecture to achieve privacy and thermal comfort while there are no technological elements within the dwellings. Also, it demonstrates the effects of windows on the building form and identity and how it gives a distinctive fingerprint of the architecture buildings.Keywords: window openings, thermal comfort, residential buildings, the Islamic architecture, human considerations
Procedia PDF Downloads 214938 Factors of Divergence of Shari’Ah Supervisory Opinions and Its Effects on the Harmonization of Islamic Banking Products and Services
Authors: Dlir Abdullah Ahmed
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Overall aims of this study are to investigate the effects of differences of opinions among Shari’ah supervisory bodies on standardization and internationalization of Islamic banking products and services. The study has used semi-structured in-depth interview where five respondents from both the Middle East and Malaysia Shari’ah advisors participated in the interview sessions. The data were analyzed by both manual and software techniques. The findings reveal that indeed there are differences of opinions among Shari’ah advisors in different jurisdictions. These differences are due to differences in educational background, schools of thoughts, environment in which they operate, and legal requirements. Moreover, the findings also reveal that these differences in opinions among Shari’ah bodies create confusions among public and bankers, and negatively affect standardization of Islamic banking transactions. In addition, the study has explored the possibility to develop Islamic-based products. However, the finding shows that it is difficult for the industry to have Islamic-based products due to high competition from conventional counterpart, legal constraints and moral hazard. Furthermore, the findings indicate that lack of political will and unity, lack of technology are the main constraints to internationalization of Islamic banking products. Last but not least, the study found that there are possibility of convergence of opinions, standardization of Islamic banking products and services if there are unified international Shari’ah h advisory council, international basic requirements for Islamic Shari’ah h advisors, and increase training and educations of Islamic bankers. This study has several implications to the bankers, policymakers and researchers. The policymakers should be able to resolve their political differences and set up unified international advisory council and international research and development center. The bankers should increase training and educations of the workforce as well improve on their banking infrastructure to facility cross-border transactions.Keywords: Shari’ah h views, Islamic banking, products & services, standardization.
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