Search results for: Islamic banking and finance

Authors: Wesam Hamed

Abstract:

This paper contributes to the existing literature by investigating the impact of political risks on the capital adequacy ratio in the banking sector of Gulf Cooperation Council (GCC) countries, which is the first attempt for this nexus to the best of our knowledge. The dynamic panel data model (System‐GMM) showed that political risks significantly decrease the capital adequacy ratio in the banking sector. For this purpose, we used political risks, bank-specific, profitability, and macroeconomic variables that are utilized from the data stream database for the period 2005-2017. The results also actively support the “too big to fail” hypothesis. Finally, the robustness results confirm the conclusions derived from the baseline System‐GMM model.

Keywords: capital adequacy ratio, system GMM, GCC, political risks

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Authors: Ossai Paulinus Edwin

Abstract:

Cash Management is a broad area having to do with the collection, concentration, and disbursement of cash including measuring the level of liquidity and managing the cash balance and short-Term Investments. Cash Management involves the efficient collection and disbursement of cash and cash equivalents. It also includes management of marketable securities because, in modern Terminology, money comprises marketable securities and actual cash in hand or in a bank. This cash management is concerned with management of cash inflow and cash outflow of a business especially as it concerns a developing nation like Nigeria. The paper throws light on the impact of cashless policy in Nigeria as it was introduced by the Central Bank of Nigeria (CBN) in December 2011 and was kick-started in Lagos in January 2012. Survey research was adopted with the questionnaires as data collection instrument. Responses show that cashless policy if adopted generally shall increase employment opportunities, reduce cash related robbery thereby reducing risk of carrying cash; it shall also reduce cash related corruption and attract more foreign investors to the country. It is expected that the introduction of cashless policy in Nigeria is a step in the right direction as it shall bring about modernization of Nigeria payment system, reduction in the cost of banking services, reduction in high security and safety risk and also curb banking related corruptions.

Keywords: cashless economy, cash management, cashless policy, e-banking, Nigeria

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Authors: Mohadese Sukhtesaraii, Mohammad Esmail Esmaili Jelodar, Kosar Sookhtesaraii

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Throughout history, humans have always wanted to have a shelter to live in, and this need and desire became the beginning of building and architecture. It was necessary to build a shelter and a building, dealing with the surrounding nature. The design and construction of architectural spaces are always influenced by nature, climate, and geographical location, and It is believed clearly see this influence even in the use of materials used in the construction of architectural buildings. The historical port of Siraf is located on the northern coast of the Persian Gulf in Bushehr province and 38 km from Kangan port. Geographically and climatically, Siraf is considered one of the hot and humid areas. The Zagros mountains, which continue from the Iranian plateau to the sea, end at Bandar Siraf; As a result, it creates a strip one kilometer wide by the sea. The location of Siraf in the restrictive conditions of the mountains and the sea has made it impossible to expand the city. The main goal of the current research is to investigate the climate of Siraf and the influence of the region's climate on the architecture and design of residential buildings in Siraf, known as noble houses, in the early Islamic centuries. In this research, it is looking for an answer to the question of how the climatic and geographical conditions have affected the architecture of Siraf buildings. The theoretical framework of this research can be expressed based on the influence of climate on the historical architecture of Bandar Seraf and the spatial analysis of archeology. Also, the research method will be analytical-descriptive and using field and library studies. The authors of the article believe that the architectural spaces of the early Islamic centuries of Siraf city were affected by the climate and geographical location, and the architects started building buildings by considering factors such as the sun's radiation, wind direction, and the position of the mountains and the sea. To use the regional and environmental potential for buildings.

Keywords: hose N, noble hose, islamic era, siraf, climate

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Authors: Vinayak Bassi, Rajpreet Singh

Abstract:

Over the years, with the emergence of sophisticated computers and algorithms, finance has been quantified using computational prowess. Asset valuation has been one of the key components of quantitative finance. In fact, it has become one of the embryonic steps in determining risk related to a portfolio, the main goal of quantitative finance. This study comprises a drawing comparison between valuation output generated by two stochastic dynamic models, namely Black-Scholes and Dupire’s bi-dimensionality model. Both of these models are formulated for computing the valuation function for a portfolio of European options using Monte Carlo simulation methods. Although Monte Carlo algorithms have a slower convergence rate than calculus-based simulation techniques (like FDM), they work quite effectively over high-dimensional dynamic models. A fidelity gap is analyzed between the static (historical) and stochastic inputs for a sample portfolio of underlying assets. In order to enhance the performance efficiency of the model, the study emphasized the use of variable reduction methods and customizing random number generators to implement parallelization. An attempt has been made to further implement the Dupire’s model on a GPU to achieve higher computational performance. Furthermore, ideas have been discussed around the performance enhancement and bottleneck identification related to the implementation of options-pricing models on GPUs.

Keywords: monte carlo, stochastic models, computational finance, parallel programming, scientific computing

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Authors: Muhamad Rosdi Senam, Khairuddin Abdul Rashid, Azila Ahmad Sarkawi, Rapiah Mohd Zaini

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Islam is a way of life than merely a religion that covers all facets of Muslim affairs and lifes. It provides the most comprehensive values, principles and guidance that are based on divine sources to all mankind in all spheres including leadership. Islamic leadership is all encompassing and holistic model of leadership that offers the tauhidic paradigm, spiritual and ethical (akhlaq) dimensions that are absent in the modern conventional leadership theories. Islamic leadership has a glorious history of great success from the era of the Prophet S.A.W. and the following caliphs that had conquered almost one third of the world territory during that time, as their leadership was paragon of excellence that followed to the spirits and teachings of the Qur’an and the Sunnah. As the modern civilisation designed by the West takes place, the modern leadership theories has been dominating the world and literature including those in the Muslim countries. However, it is clear that values and principles derived from Islam and the West are distinct, as the Islamic ones are based on divine, the non-Islamics are not indeed as there are based on human rational and judgement. Recent development in business organisations and literature have seen the tendency towards moral, ethical, even spiritual and positive form of leadership such as servant leadership, ethical leadership, authentic leadership and spiritual leadership that found its root in the Islamic model of leadership.This development has surfaced after series of serious ethical dilemma, corporate scandals and leadership crisis in the West. This paper aims to draw a comparative discussions and analysis between the modern conventional leadership theories with the Islamic leadership by highlighting the key dimensions that distinguish the two. It is suggested in this paper that the core dimensions of Islamic leadership are spiritual dimension, moral and ethical dimension and physical dimension which is also paralleled with the roles of khalifah of Allah on earth; relationship with Allah, relationship with human beings and relationship with the environment respectively. Islam is a way of life than merely a religion that covers all facets of Muslim affairs and lifes. It provides the most comprehensive values, principles and guidance that are based on divine sources to all mankind in all spheres including leadership. Islamic leadership is all encompassing and holistic model of leadership that offers the tauhidic paradigm, spiritual and ethical (akhlaq) dimensions that are absent in the modern conventional leadership theories. Islamic leadership has a glorious history of great success from the era of the Prophet S.A.W. and the following caliphs that had conquered almost one third of the world territory during that time, as their leadership was paragon of excellence that followed to the spirits and teachings of the Qur’an and the Sunnah. As the modern civilisation designed by the West takes place, the modern leadership theories has been dominating the world and literature including those in the Muslim countries. However, it is clear that values and principles derived from Islam and the West are distinct, as the Islamic ones are based on divine, the non-Islamics are not indeed as there are based on human rational and judgement. Recent development in business organisations and literature have seen the tendency towards moral, ethical, even spiritual and positive form of leadership such as servant leadership, ethical leadership, authentic leadership and spiritual leadership that found its root in the Islamic model of leadership.This development has surfaced after series of serious ethical dilemma, corporate scandals and leadership crisis in the West. This paper aims to draw a comparative discussions and analysis between the modern conventional leadership theories with the Islamic leadership by highlighting the key dimensions that distinguish the two. It is suggested in this paper that the core dimensions of Islamic leadership are spiritual dimension, moral and ethical dimension and physical dimension which is also paralleled with the roles of khalifah of Allah on earth; relationship with Allah, relationship with human beings and relationship with the environment respectively.

Keywords: conventional leadership, Islamic leadership, comparative, dimensions

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Authors: Anthony I. Otuonye, Juliet N. Odii, Perpetual N. Ibe

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The obvious challenges faced by most commercial bank customers while using the services of ATMs (Automated Teller Machines) across developing countries have triggered the need for an improved system with better security features. Current ATM systems are password-based, and research has proved the vulnerabilities of these systems to heinous attacks and manipulations. We have discovered by research that the security of current ATM-assisted banking services in most developing countries of the world is easily broken and maneuvered by fraudsters, majorly because it is quite difficult for these systems to identify an impostor with privileged access as against the authentic bank account owner. Again, PIN (Personal Identification Number) code passwords are easily guessed, just to mention a few of such obvious limitations of traditional ATM operations. In this research work also, we have developed a system of fingerprint biometrics with PIN code Authentication that seeks to improve the security features of traditional ATM installations as well as other Banking Services. The aim is to ensure better security at all ATM installations and raise the confidence of bank customers. It is hoped that our system will overcome most of the challenges of the current password-based ATM operation if properly applied. The researchers made use of the OOADM (Object-Oriented Analysis and Design Methodology), a software development methodology that assures proper system design using modern design diagrams. Implementation and coding were carried out using Visual Studio 2010 together with other software tools. Results obtained show a working system that provides two levels of security at the client’s side using a fingerprint biometric scheme combined with the existing 4-digit PIN code to guarantee the confidence of bank customers across developing countries.

Keywords: fingerprint biometrics, banking operations, verification, ATMs, PIN code

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Authors: Saheed Biodun Qaasim-Badmusi

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A lot has been written on peaceful co-existence with non-Muslims in Islam, but little attention is paid to the conflict between Ahadith relating to dissociation from non-Muslims as a kernel of Islamic faith, and the one indicating peaceful co-existence with them. Undoubtedly, proper understanding of seemingly contradictory prophetic traditions is an antidote to the bane of pervasive extremism in our society. This is what calls for need to shed light on ‘Harmonization of Conflict Ahadith between Dissociation and Peaceful Co-existence with Non-Muslims. It is in view of the above that efforts are made in this paper to collate Ahadith pertaining to dissociation from non-Muslims as well as co-existence with them. Consequently, a critical study of their authenticity is briefly explained before proceeding to analysis of their linguistic and contextual meanings. To arrive at the accurate interpretation, harmonization is graphically applied. The result shows that dissociation from non –Muslims as a bedrock of Islamic faith could be explained in Sunnah by prohibition of participating or getting satisfaction from their religious matters, and anti-Islamic activities. Also, freedom of apostasy, ignoring da`wah with wisdom and seeking non-Muslims support against Muslims are frowned upon in Sunnah as phenomenon of dissociation from non –Muslims. All the aforementioned are strictly prohibited in Sunnah whether under the pretext of enhancing peaceful co-existence with non-Muslims or not. While peaceful co-existence with non-Muslims is evidenced in Sunnah by permissibility of visiting the sick among them, exchange of gift with them, forgiving the wrong among them, having good relationship with non-Muslim neighbours, ties of non-Muslim kinship, legal business transaction with them and the like. Finally, the degree of peaceful co-existence with non-Muslims is determined by their attitude towards Islam and Muslims.

Keywords: Ahadith, conflict, co-existence, non-Muslims

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Authors: Zainuddin Abuhamid Muhammad Ghozali, Andrew Whitworth

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Islamic boarding school or pesantren is a distinctive education institution in Indonesia focusing on religious teachings. Its stance in restricting access to the internet raises a question about its students’ development of digital literacy. Inspired by Luckin’s ecology of resource model, this study aims to map out the digital literacy situation of the institution based on the availability of learning resources, such as digital facilities, digital accessibility, and digital competence. This study was carried out through a survey method involving 50 teachers from pesantrens across the nation. The result shows that pesantrens have provided students with digital facilities at a moderate level, yet the accessibility to using them is still limited. They also incorporated digital competencies into their curriculum, with an emphasis on digital ethics. The study also identifies different patterns of pesantrens’ behavior based on types and educational levels, where certain school types and educational levels tend to give a stricter policy compared to others or vice versa. The restriction of digital resources in pesantren indicated that they had done a filtration process to design their learning environment. The filtration was mainly motivated by sociocultural factors, where they drew concern for the negative impact of the internet. Notably, this restriction also contributes to students’ poor development of digital literacy.

Keywords: digital literacy, ecology of resources, Indonesia, Islamic boarding school

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Authors: Wisu Suntoyo, Dedy Sushandoyo

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Innovation and digital transformation are essential for firms’ competitiveness in the digital age. The competition in Indonesia’s banking industry provides an intriguing case study for understanding how digital transformation can generate innovation in established companies. The empirical evidence of this study is mainly based on interviews and annual reports examining four established banks in their various states of digital transformation. The findings of this study reveal that banks’ digital transformations that lead to innovations differ in terms of the activities undertaken and the outcomes achieved depending on the state of advancement in which they are. Digital transformation is a complex and challenging process, and this study finds that with this strategy, established banks have shown capable of generating innovation. Banks can choose types of transformation activities that generate radical, architectural, modular, or even incremental innovations.

Keywords: digital transformation, innovations, banking industry, established banks

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Authors: Ossai Paulinus Edwin

Abstract:

Cash Management is a broad area having to do with the collection, concentration and disbursement of cash including measuring the level of liquidity and managing the cash balance and Short-Term Investments. Cash Management involves the efficient collection and disbursement of cash and cash equivalents. It also includes management of marketable securities because, in modern Terminology, money comprises marketable securities and actual cash in hand or in a bank. This cash management is concerned with management of cash inflow and cash outflow of a business especially as it concerns a developing nation like Nigeria. The paper throws light on the impact of cashless policy in Nigeria as it was introduced by the Central Bank of Nigeria (CBN) in December 2011 and was kick started in Lagos in January 2012. Survey research was adopted with the questionnaires as data collection instrument. Responses show that cashless policy if adopted generally shall increase employment opportunities, reduce cash related robbery thereby reducing risk of carrying cash; it shall also reduce cash related corruption and attract more foreign investors to the country. It is expected that the introduction of cashless policy in Nigeria is a step in the right direction as it shall bring about modernization of Nigeria payment system, reduction in the cost of banking services, reduction in high security and safety risk and also curb banking related corruptions.

Keywords: cashless economy, cash management, cashless policy, e-banking, Nigeria

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Authors: Cam-Duc Au, Philippe Krahnhof, Lars Klingenberger

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German banks are experiencing harsh times due to rising costs and declining profits. On the one hand, acquisition costs for new customers are increasing because of the rise of innovative FinTechs, which entered the market with one specific goal: disrupting the whole financial services industry by occupying parts of the value chain. On the other hand, the COVID-19 pandemic, as well as an overall low level of interest rates, cause the traditional source of bank income to still drain. Consequently, traditional banks must rethink their strategies or their identity, so to speak, because they go beyond their traditional offering of products and services. Having said that, banks may create new sources of income to stabilize their economic situation and replenish profits. The given paper aims to research the opportunities of establishing an ecosystem model. In doing so, the paper contributes to the current literature debate and provide reference points for traditional banks to start. Firstly, a systematic literature review introduces a selection of research works the author regards as significant. In the following step, quantitative data from an online survey with bank clients are analysed by means of descriptive statistics to show the perspective of Germans with regards to an ecosystem offering. The final research findings indicate that the surveyed retail banking clients express interest in the new offer, whereas non-financial products and services are of lower interest than their financial pendants.

Keywords: banking, ecosystem, disruptive innovation, digital offering, open-banking-strategy, financial services industry

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Authors: Luyao Zhang, Tianyu Wu, Jiayi Li, Carlos-Gustavo Salas-Flores, Saad Lahrichi

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Recent advances in AI have made algorithmic trading a central role in finance. However, current research and applications are disconnected information islands. We propose a generally applicable pipeline for designing, programming, and evaluating algorithmic trading of stock and crypto tokens. Moreover, we provide comparative case studies for four conventional algorithms, including moving average crossover, volume-weighted average price, sentiment analysis, and statistical arbitrage. Our study offers a systematic way to program and compare different trading strategies. Moreover, we implement our algorithms by object-oriented programming in Python3, which serves as open-source software for future academic research and applications.

Keywords: algorithmic trading, AI for finance, fintech, machine learning, moving average crossover, volume weighted average price, sentiment analysis, statistical arbitrage, pair trading, object-oriented programming, python3

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Authors: Bilal Orfali

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It is common practice in modern times to read mystical poetry and apply it to our mundane lives and loves. Sufis in the early period did the opposite. Their mystical hymns often spun out of the courtly poetic ghazal, panegyric, and wine songs. This paper highlights the relation of the Arabic courtly poetic canon to early Sufism. Sufi akhbār and poetry evoke past poets and their poetic heritage. They tend to quote or refer to eminent poets whose poetry must have been widely circulated and memorized. However, Sufism places this readily recognizable poetry in a new context that deliberately changes the past. It is a process of a metaphorization in which the reality of the pre-Islamic, Umayyad, and Abbasid models now acts as a device or metaphor for the Sufi poetics.

Keywords: Sufism, Arabic poetry, literature, Islamic literature, Abbasid

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Authors: M. Sohrabi Narciss

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Urban spaces of Tehran, the capital of Iran, have witnessed many revolts, movements, and protests during the past few decades. After the Iranian Constitutional Revolution, the 1979 Revolution has had a profound impact on Tehran’s urban space. In 1979, the world watched as Iranians demonstrated en masse against the Pahlavi dynastdy which eventually led to its overthrow. Tehran’s public space is replete with images and artwork that depict the overthrow of the Pahlavi regime and the establishment of an Islamic government in Iran. The public artworks related to the 1979 Islamic Revolution reflect the riots, protests, and strikes that the Iranians underwent during the revolution. Many of these artworks try to revitalize the events that occurred in the 1970s by means of collective memory. Almost 4 decades have passed since the revolution and ever since the public artwork has been affected either directly or indirectly by the Iran-Iraq War, the Green Movement, and the rise and fall of various political forces. The present study is an attempt to investigate Tehran’s urban artwork such as urban sculptures and mural paintings organized and supervised by the government and the graffiti drawn by the critics or the opposition groups. To this end, in addition to the available documents, field research and questionnaires were used to qulaitatively analyze the data. This paper tries to address the following questions: 1) what changes have occurred in Tehran’s urban art? 2) Does the public, revolution-related artwork have an effect on people’s vitality? 3) do Iranians find these artworks appealing or not?

Keywords: public space, Tehran, public art, movement, Islamic revolution

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Authors: Joelle Thng, Li Fang

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Objective: As programming becomes a highly valued and sought-after skill in the economy, many universities have started offering Python courses to help students keep up with the demands of employers. This study focuses on designing a university module that effectively educates undergraduate students on financial analysis using Python programming. Methodology: To better satisfy the specific demands for each sector, this study adopted a qualitative research modus operandi to craft a module that would complement students’ existing financial skills. The lessons were structured using research-backed educational learning tools, and important Python concepts were prudently screened before being included in the syllabus. The course contents were streamlined based on criteria such as ease of learning and versatility. In particular, the skills taught were modelled in a way to ensure they were beneficial for financial data processing and analysis. Results: Through this study, a 6-week course containing the chosen topics and programming applications was carefully constructed for finance students. Conclusion: The findings in this paper will provide valuable insights as to how teaching programming could be customised for students hailing from various academic backgrounds.

Keywords: curriculum development, designing effective instruction, higher education strategy, python for finance students

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Authors: Sohail Zafar, Sardar Javaid Iqbal Khan

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We use a parametric approach within a translog cost function framework to estimate the economies of scale in National Bank of Pakistan from 1997 to 2013. The results indicate significant economies of scale throughout the sample at aggregates and disaggregates taking in account size subject to stipulation ownership. The factor markets often produce scale inefficiencies in the banking of developing countries like Pakistan such inefficiencies are common due to distortion in factor markets leading to the use of inappropriate factor proportions. The findings suggest that National Bank of Pakistan diversify their asset portfolios that it has cost advantage, therefore, expansion in size should be encouraged under current technology because it appears to be cost effective. In addition, our findings support the implementation of universal banking model in Pakistan.

Keywords: scale economies, cost function, disaggregates, aggregates

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Authors: Mohammed Jemal Ahmed

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Some anti-Islam attributes, such as alcoholism and voyeurism, have become de facto manifestations of the tourism sector. This eventually causes a paradoxical relationship between tourism and Islam. Hence, on the one hand, Islam inherently encourages Muslims to engage in tourism, the interest of Muslims to engage in tourism is steadily increasing. On the other hand, haram activities and products that are not allowed to Muslims as per the Islamic law and doctrine have surrounded tourism. Therefore, halal tourism has emerged as the best mediator to reconcile the conflicts between secular interests and religious values. Recent studies have confirmed that halal tourism is an emerging cultural phenomenon and secular rather than religious. The central aim of halal tourism is to have delighted customers irrespective of their religious and cultural backgrounds while promoting environmental conservation and social coexistence. This study appraises halal tourism development in Ethiopia from commercial, socio-cultural and diplomatic perspectives. Employing qualitative methodologies, the study, firstly, tried to clarify the existing terminological ambiguities between halal tourism and Islamic tourism and redefine both concepts. Then, it assessed perceptions of local communities and stakeholders towards halal tourism and identified halal tourism resources of Ethiopia. Accordingly, five clusters of halal visitor attractions and five potential halal tourism routes were identified and proposed. Furthermore, the comparative advantages of Ethiopia in terms of halal tourism development and potential barriers to halal tourism development in the country were rigorously appraised. The findings of this study reveal that halal tourism could inject hard currency into the national economy and create job opportunities for the locals. It could also support the mainstream tourism industry through product diversification and curving seasonality. Moreover, socially, halal tourism reinforces interreligious cohesion, relationship and coextensive in multi-religious, multicultural and multiethnic Ethiopia. Politically, it strengthens Ethiopia's foreign diplomatic relationship with the Islamic world and its near and distant neighbor Muslim Countries.

Keywords: halal-conscious travelers, halal tourism, Islamic tourism, tourism resources

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Authors: David Broussard

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This review article delves into the realm of marine conservation finance, addressing the inadequacies in current financial streams from the private sector and the underutilization of existing financing mechanisms. The study emphasizes the emerging field of “blue finance”, which contributes to economic growth, improved livelihoods, and marine ecosystem health. The financial burden of marine conservation projects typically falls on philanthropists and governments, contrary to the polluter-pays principle. However, the private sector’s increasing commitment to NetZero and growing environmental and social responsibility goals prompts the need for alternative funding sources for marine conservation initiatives like marine protected areas. The article explores the potential of utilizing several financing mechanisms like carbon credits and other forms of payment for ecosystem services in the marine context, providing a solution to the lack of private funding for marine conservation. The methodology employed involves a systematic and quantitative approach, combining traditional review methods and elements of meta-analysis. A comprehensive search of the years 2000 - 2023, using relevant keywords on the Scopus platform, resulted in a review of 252 articles. The temporal evolution of blue finance studies reveals a significant increase in annual articles from 2010 to 2022, with notable peaks in 2011 and 2022. Marine Policy, Ecosystem Services, and Frontiers in Marine Science are prominent journals in this field. While the majority of articles focus on payment for ecosystem services, there is a growing awareness of the need for holistic approaches in conservation finance. Utilizing bibliometric techniques, the article showcases the dominant share of payment for ecosystem services in the literature with a focus on blue carbon. The classification of articles based on various criteria, including financing mechanisms and conservation types, aids in categorizing and understanding the diversity of research objectives and perspectives in this complex field of marine conservation finance.

Keywords: biodiversity offsets, carbon credits, ecosystem services, impact investment, payment for ecosystem services

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Authors: Ender Su, Kai Wen Wong, I-Ling Ju, Ya-Ling Wang

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In this study, the systemic risk change of Taiwan’s banking sector is analyzed during the financial crisis. The risk expose of each financial institutions to the whole Taiwan banking systemic risk or vice versa under financial distress are measured by conditional Value-at-Risk (CoVaR) and conditional coherent expected shortfall (CoES). The CoVaR and CoES are estimated by using vector quantile autoregression (MVMQ-CaViaR) with the daily stock returns of each banks included domestic and foreign banks in Taiwan. The daily in-sample data covered the period from 05/20/2002 to 07/31/2007 and the out-of-sample period until 12/31/2013 spanning the 2008 U.S. subprime crisis, 2010 Greek debt crisis, and post risk duration. All banks in Taiwan are categorised into several groups according to their size of market capital, leverage and domestic/foreign to find out what the extent of changes of the systemic risk as the risk changes between the individuals in the bank groups and vice versa. The final results can provide a guidance to financial supervisory commission of Taiwan to gauge the downside risk in the system of financial institutions and determine the minimum capital requirement hold by financial institutions due to the sensibility changes in CoVaR and CoES of each banks.

Keywords: bank financial distress, vector quantile autoregression, CoVaR, CoES

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Authors: Dilang Thouk Tharjiath

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This study seeks to examine determinants of access to finance: the case of micro and small enterprises in bonga town. It identifies the sector as the key to unlocking the economic potentials of the country. For the achievement of the objective of the study simple random and stratified sampling has been used to select 179 respondents, primary and secondary data were used, primary data were collected through face to face interview and preparing questionnaire and secondary data were collected through reviewing firms record and reports, quantitative research approach were used and the data obtained were analyzed using descriptive research design. Access to finance is one of the key obstacles of MSE’s not only when starting the business project but also when operating. Identifying the major determinants of access to finance is therefore quite crucial. Based on descriptive result the financiers specially formal financiers tend to grant credit easily for enterprises which are located near to town, having operators with higher educational level, experienced and with a positive attitudes towards or fulfill their lending procedures, and a firm having collateralized asset, prepare business plan, maintain accounting practice ,large and old enough. Finally the study recommended that As Educational level of entrepreneurs has significant effect on access to credit from bank and the managers or owners education level is low in Bonga town the concerned bodies of both the government and non-governmental institutions in collaboration with Bonga town MSE development office are recommended to create awareness and facilitate the provision of additional training for those with lower educational level.

Keywords: credit, entrepreneur, enterprise, manager

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Authors: Adel Ali Elshaibani

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Risk management indicators augment the reporting infrastructure, particularly for the board and senior management, to identify, monitor, and manage risks. This enhancement facilitates improved decision-making throughout the banking organization. Decision tree analysis is a tool that visually outlines potential outcomes, costs, and consequences of complex decisions. It is particularly beneficial for analyzing quantitative data and making decisions based on numerical values. By calculating the expected value of each outcome, decision tree analysis can help assess the best course of action. In the context of banking, decision tree analysis can assist lenders in evaluating a customer’s creditworthiness, thereby preventing losses. However, applying these tools in developing countries may face several limitations, such as data availability, lack of technological infrastructure and resources, lack of skilled professionals, cultural factors, and cost. Moreover, decision trees can create overly complex models that do not generalize well to new data, known as overfitting. They can also be sensitive to small changes in the data, which can result in different tree structures and can become computationally expensive when dealing with large datasets. In conclusion, while risk management indicators and decision tree analysis are beneficial for decision-making in banks, their effectiveness is contingent upon how they are implemented and utilized by the board of directors, especially in the context of developing countries. It’s important to consider these limitations when planning to implement these tools in developing countries.

Keywords: risk management indicators, decision tree analysis, developing countries, board of directors, bank performance, risk management strategy, banking institutions

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Authors: Abdulvahab Forati

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Religious intellectualism is the only stream of consciousness in Iran that its religious theories formed Democracy. The theory of Religious intellectualism was utilized in Constitutional Revolution and Islamic Revolution. To instate Democracy in Iran, in compare with West and sunnis, the theory of Religious Intellectualism is being used differently. Unlike Democracy in the west that has started with the concept of Individualism and Natural Rights or in Sunni world that has started with the concept of consultation, it has started in Iran with mima-la-nas-fih (what we don’t have any proof for)or mantaqa-alfiraq-altashri’ (area of vacuum from reason). Shia scholars first acquainted with the concept of Democracy through theories of Sheikh Mortiza Ansari, and later some of his followers, including Akhund-e-khorasani and Mirzaye naeini, regarding Sheikh Ansari’s thoughts, began to analyze its Constitutional system and Democratic elements. But Imam Khomeini, the great founder of Islamic Republic of Iran, with respect to RAKHS (religious permission for having a choice)could make connection between Islam and Democracy. Instead of focusing on Civil contracts, he relied on Sirah Ughala (Tradition) and accepted many of the current conducts, e.g. Democracy and Political Parties and acknowledged the authority (Hujiat) of them even in absence of Infallibles. These two are the most notable experiences of shia political thoughts about Democracy within the last 100 years. In this article, the author tries to explain the second experience in Imam Khomeini’s thoughts and Sirah.

Keywords: Shia school, Islamic revolution, democracy, political order

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Authors: İlhami Karahanoglu, Oguz Ceylan

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As its well-known definitions; systemic risk refers to whole economic system down-turn movement even collapse together in very severe cases. In fact, it points out the contagion effects of the defaults. Such a risk is can be depicted with the famous Chinese game of falling domino stones. During and after the Bear & Sterns and Lehman Brothers cases, it was well understood that there is a very strong effect of systemic risk in financial services sector. In this study, we concentrate on the existence of systemic risk in Turkish Banking Sector based upon the Halkbank Case during the end month of 2013; there was a political turmoil in Turkey in which the close relatives of the upper politicians were involved in illegal trading activities. In that operation, the CEO of Halkbank was also arrested and in investigation, Halkbank was considered as part of such illegal actions. That operation had an impact on Halkbanks stock value. The Halkbank stock value during that time interval decreased remarkably, the distributional profile of stock return changed and became more volatile as well as more skewed. In this study, the daily returns of 5 leading banks in Turkish banking sector were used to obtain 48 return distributions (for each month, 90-days-back stock value returns are used) of 5 banks for the period 12/2011-12/2013 (pre operation period) and 12/2013-12/2015 (post operation period). When those distributions are compared with timely manner, interestingly; the distribution of the 5 other leading banks in Turkey, public or private, had also distribution profiles which was different from the past 2011-2013 period just like Halkbank. Those 5 big banks, whose stock values are monitored with sub index in Istanbul stock exchange (BIST) as BN10, had more skewed distribution just following the Halkbank stock return movement during the post operation period, with lover mean value and as well higher volatility. In addition, the correlation between the stock value return distributions of the leading banks after Halkbank case, where the returns are more skewed to the left, increased (which is measured in monthly base before and after the operation). The dependence between those banks was stronger under the case where the stock values were falling compared with the normal market condition. Such distributional effect of stock returns between the leading banks in Turkey, which is valid for down sub-market (financial/banking sector) condition, can be evaluated as an evidence for the existence of contagious effect and systemic risk.

Keywords: financial risk, systemic risk, banking sector, return distribution, dependency structure

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Authors: J. Erina, I. Erins

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The goals of the present research are to estimate Six Sigma implementation in Latvian commercial banks and to identify the perceived benefits of its implementation. To achieve the goals, the authors used a sequential explanatory method. To obtain empirical data, the authors have developed the questionnaire and adapted it for the employees of Latvian commercial banks. The questions are related to Six Sigma implementation and its perceived benefits. The questionnaire mainly consists of closed questions, the evaluation of which is based on 5 point Likert scale. The obtained empirical data has shown that of the two hypotheses put forward in the present research Hypothesis 1 has to be rejected, while Hypothesis 2 has been partially confirmed. The authors have also faced some research limitations related to the fact that the participants in the questionnaire belong to different rank of the organization hierarchy.

Keywords: six sigma, quality, commercial banking sector, latvian

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Authors: Seyyedeh Faezeh Miralami, Sahar Sayyadchapari, Mona Laleh, Zahra Poursafar

Abstract:

Tiling patterns are magnificent display of decoration in Islamic period. They transform the dusty and dreary facades to splendid and ornate ones. Due to ideological factors and elements of Azari style decorations, geometrical patterns and vegetative designs became prevalent and pervasive in religious sites like mosques. Objectives: The objective of this research is a study of tiling patterns in Tabriz Kaboud mosque, as a splendid work of architecture in Azari style. In this study, the geometrical designs and tiling patterns employed in the mosque decorations are examined and analyzed. Method: The research is based on a descriptive analysis method. Data and information are collected based on documents library and field study. Then, polished and brushed, the study resulted in an illustrative conclusion. Findings: In religious sites such as mosques, geometry represents ‘divination’ in Christian theology and ‘Unity with God’ or ‘Tawhid’ in Islamic terminology. In other words, science, literature, architecture, and all forms of human expression and representation are pointed towards one cause, unity or divination. Tiling patterns of Kaboud Mosque, mostly hexagonal, circular, square and triangle, form outstanding architectonic features which recount a story, a narration of divination or unification with the One.

Keywords: tiling, Azari style, Tabriz Kaboud Mosque, Islamic architecture

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Authors: Baptiste Brodard

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In Switzerland, as well as in other European countries, specific social issues related to Muslims have recently emerged in public debates. In addition to the question of terrorism and radicalization, Muslim migrant populations are highly affected by social problems such as crime, poverty, marginalization, and overrepresentation in prisons. This situation has drawn the state’s attention to the need for implementing new responses to the challenges of religious extremism, crime, and social exclusion particularly involving Muslims. While local authorities have begun to implement trainings and projects to tackle these new social issues, Muslim grassroots associations have developed some initiatives to address the needs of the population, mainly focusing on problems related to Islam and Muslims but also addressing the rest of the population. Finally, some local authorities have acknowledged the need for these alternative initiatives as well as their positive contributions to society. The study is based on a Ph.D. research grounded on a case study of three Islamic networks in Switzerland, including various local organizations tackling social exclusion and religious radicalization through innovative grassroots projects. Using an ethnographic approach, it highlights, on the one hand, the specificities of such organizations by exploring the role of Islamic norms within the social work practices. On the other hand, it focuses on the inclusion of such faith-based projects within the mainstream society, observing the relationships between Islamic organisations and both the state and other civil society organizations. Finally, the research study aims to identify some innovative ways and trends of social work involving the inclusion of community key actors within the process. Results showed similar trends with Islamic social work developed in other European countries such as France and the United Kingdom, but also indicate a range of specificities linked to the Swiss socio-political context, which shapes the involvement of religious actors in different ways. By exploring faith-based commitment to addressing concrete social issues, the study finally contributes to shedding light on the link between Islam, social work and activism within the European context.

Keywords: exclusion, Islam, Muslims, social work, Switzerland

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Authors: Lucian J. Pitt

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The primary purpose of this study is to understand the differences in the relationship between working capital management efficiency, working capital investment decisions and working capital finance decisions and the profitability of firms within the context of two African developing economies, Kenya and Nigeria. The study finds that there is a significant difference in the relationship between the firm’s profitability and the working capital variables which suggests different challenges for working capital management in each of these countries.

Keywords: working capital management, working capital investment, working capital finance, profitability, cash conversion cycle

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Authors: Jordan Daud, Satriya Wibawa, Wahyu Wardhana

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In the summer of 2014, the leaders of the Islamic State of Iraq and Syria proclaimed the founding of religious-political system known as the caliphate which titled Islamic State (IS). As Caliph, Abu Bakr Baghdadi advocated Jihad from the Ummah (the Muslim community) to defend the Islamic state from unbelievers. This call for Jihad by IS had encouraged some radical organization in Southeast Asia pledge allegiance to IS and established bases for IS operation in Southeast Asia. This development had increased security concern for possible terrorism action in Southeast Asia, which currently not very active due to counterterrorism efforts from ASEAN member states and its cooperation with the world. This paper firstly tries to draw understanding from Ulema (Muslim cleric) about the conception of caliphate and Jihad based on Quran and Hadith. Secondly, this paper will elaborate counterterrorism efforts from ASEAN countries to prevent radicalization and terrorism act in addressing the call for jihad to establish IS in Southeast Asia. The third, this paper will recommend the role of the social community, especially Ulema, in Southeast Asia to prevent the misunderstanding of Jihad which usually used by terrorist to justify their action. Hopefully, this social community role will decrease the radicalization of Muslim community in Southeast Asia alongside with the counterterrorism efforts to create secure and stable ASEAN community based on shared norm and values.

Keywords: caliphate, jihad, ASEAN, counterterrorism, social community

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Authors: Bisi S. Olawoyin

Abstract:

This study attempts an exploration into behavioural finance in which the traditional assumptions of expected utility maximization with rational investors in efficient markets are dropped. It reviews prior research and evidence about how psychological biases affect investors behaviour and stock selection. This study examined the relationship between demographic variables and financial behaviour biases among public sector retirees who invested in the Nigerian Stock Exchange prior to their retirement. By using questionnaire survey method, a total of 214 valid convenient samples were collected in order to determine how specific demographic and psychological trait affect stock selection between dividend paying and non-dividend paying stocks. Descriptive statistics and OLS were used to analyse the results. Findings showed that most of the retirees prefer dividend paying stocks in few years preceding their retirement but still hold on to their non-dividend paying stock on retirement. A significant difference also exists between senior and junior retirees in preference for non-dividend paying stocks. These findings are consistent with the clientele theories of dividend.

Keywords: behavioural finance, clientele theories, dividend paying stocks, stock selection

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Authors: Ghazi Abdul Rehman Qasmi

Abstract:

Islam is the preacher and torch-bearer of unity and solidarity. All the followers of Islam are advised to be united. Islam strongly condemns those elements which disunite the unity of Muslim Ummah. Like pearls in a rosary, Islam has united the Muslims from all over the world in the wreath of unity and forbade the Muslims to avoid separation and to be disintegrated. The aspect of unity is prominent in all divine injunctions and about worship. By offering five times obligatory congregational prayers, passion of mutual love and affection is increased and on the auspicious days like Friday, Eid-ul-fiter and Eid-ul-azha, majority of the Muslims come together at central places to offer these congregational prayers. Thus unity and harmony among the Muslims can be seen. Similarly the Muslim pilgrims from all over the world eliminate all kind of worldly discrimination to perform many rituals of pilgrimage while wearing white color cloth as a dress. Pilgrimage is a demonstration of Islamic strength. When the Muslims from all over the world perform the same activities together and they offer their prayers under the leadership of one leader (IMAM). Muslims come together on the occasion of pilgrimage to perform Tawaf (seven circuits,first three circuits at a hurried pace(Rammal) and followed by four times, more closely, at a leisurely pace, round the Holy Kaabah to perform circumambulation known as Tawaf in religious terminology,Saee(running or walking briskly seven times between two small hills Safa&Marwa), Ramy-al-jamarat (throwing pebbles at the stone pillars, symbolizing the devil). In this way dignity and sublimity of Islam is increased and unity and integrity of Muslim Ummah is promoted also. By studying the life history of Hazrat Muhammad (P.B.U.H) we come to know that our Holy Prophet (P.B.U.H) has put emphasis on unity and integrity. We have to follow the Islamic teachings to create awareness among the members of Muslim Ummah. In the light of the Holy Quran and Sunnah, we have to utilize all the sources and potential for this noble cause.

Keywords: unity, Ummah, sources, Islamic teaching

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