Search results for: islamic & conventional banks

Authors: Navdeep Kaur

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Corporate Social Responsibility is the process through which the organizations execute their philanthropic visions for social welfare. This paper considers the data of one Public Sector Bank–State Bank of India (SBI) and one Private Sector Bank-Industrial Credit and Investment Corporation of India (ICICI) from the year 2008 to 2016. The study is based on descriptive research design, and secondary data collected from the annual report of respective bank from website and different literature are reviewed. Least Square Method is used for estimating CSR spending for the financial year 2017-18. The analysis shows that these banks are making efforts for the implementation of CSR, but are not spending their 2% share of profits on CSR. There is a need for better CSR activities by the banks, which is possible by concentrating more on the prevailing social issues. The finding reveals that the percentage of profit after tax spends for CSR by SBI is more compare to ICICI. The estimated Spending for CSR for 2017-18 is also more in SBI as compared to ICICI.

Keywords: banking sector, corporate social responsibility in India, financial institution, public sector banks, SBI, ICICI

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Authors: Libena Cernohorska, Barbora Sutorova, Petr Teply

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There are pending discussions over an impact of global regulatory efforts on banks. In this paper we present a literature review on the profitability-risk-capital relationship in banking. Research papers dealing with this topic can be divided into two groups: the first group focusing on a capital-risk relationship and the second group analyzing a capital-profitability relationship. The first group investigates whether the imposition of stricter capital requirements reduces risk-taking incentives of banks based on a simultaneous equations model. Their model pioneered the idea that the changes in both capital and risk have endogenous and exogenous components. The results obtained by the authors indicate that changes in the capital level are positively related to the changes in asset risk. The second group of the literature concentrating solely on the relationship between the level of held capital and bank profitability is limited. Nevertheless, there are a lot of studies dealing with the banks’ profitability as such, where bank capital is very often included as an explanatory variable. Based on the literature review of dozens of relevant papers in this study, an empirical research on banks’ profitability and risk adjustment decisions under new banking rules Basel III rules can be easily undertaken.

Keywords: bank, Basel III, capital, decision making, profitability, risk, simultaneous equations model

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Authors: Alitajer Saeed, Negintaji Farshad

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This study has been examined the relationship between anatomical components of mosques and place attachment of people to anatomies of mosques with the approach of attending to Islamic wisdom. To this end, this article by reviewing the theoretical and empirical literature of mosques' anatomy and the role of anatomy on the architectural design of Iranian mosques by examining the quantitative and qualitative indicators and in order to understand and identify the anatomy of mosques, components such as: entrance, portico, minarets, domes, bedchamber and pool have been investigated. For this purpose, SPSS software has been used. Research is related to field and is of descriptive, analytical and inferential type and quantitative and qualitative indicators have been examined. Statistical analysis obtained from the questionnaire indicates that there is a significant relationship between the anatomical components of architecture and place attachment of the participants. By understanding and identifying the anatomy of mosques and appropriate planning to use the anatomy in Islamic architecture and considering it as an eminent indicators of designing, it can present great Iranian architecture.

Keywords: Islamic wisdom, Islamic architecture, mosque anatomy place attachment, Islamic art

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Authors: Shabeer Khan

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The main objective of Islamic Finance is to promote social justice thorough financial inclusion and redistribution of economic resources between rich and poor. The approach of Islamic finance is more comprehensive in nature and covers both formal and informal sectors of the economy, first, through reducing the gap between both sectors, and second by using specific Islamic values to reallocate the wealth between formal and informal sectors. Applying Generalized Method of Movements (GMM) to the annual data spanning from 1995-2015 for 141 countries, this study explores the determinants of informal business sector in Organization of Islamic Cooperation (OIC) countries and then compares with Non-OIC countries. Economic freedom and institutions variables as well as economic growth and money supply are found to reduce informal business sector in both OIC and Non-OIC nations while government expenditure are found to increase informal business sector in both group of nations. Informal Business sector remain the same in both types of countries but still the majority Muslim population in OIC economies create main difference between both groups of nations and justify the potential role of Islamic Finance in informal business sector in OIC nations. The study suggests that institutions quality should be improved and entrepreneurs’ friendly business environment must be provided. This study refines the main features of informal business sector and discuss their implications on policy designing and implementation, particularly in the context of Islamic finance fight against poverty, inequality and improving living standards of informal sector participants in OIC countries.

Keywords: Islamic finance, informal Business Sector, Generalized Method of Movements (GMM) and OIC

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Authors: Shuruq Ghazi Nahhas

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Islamic art is a decorative art that depends on repeating motifs in various shapes to cover different surfaces. Each motif has its own characteristics and style that may reflect different Islamic periods, such as Umayyad, Abbasid, Fatimid, Seljuk, Nasrid, Ottoman, and Safavid. These periods were the most powerful periods which played an important role in developing the Islamic motifs. Most of these motifs of the Islamic heritage were not used in new applications. This research focused on reviving the vegetal Islamic motifs found on Islamic heritage and redesign them in a new format to decorate various products, including scarfs, cushions, coasters, wallpaper, wall art, and boxes. The scarf is chosen as one element of these decorative products because it is used as accessories to add aesthetic value to fashion. A descriptive-analytical method is used for this research. The process started with extracting and analyzing the original motifs. Then, creating the new motifs by simplifying, deleting, or adding elements based on the original structure. Then, creating repeated patterns and applying them to decorative products. The findings of this research indicated: repeating patterns based on different structures creates unlimited patterns. Also, changing the elements of the motifs of a pattern adds new characteristics to the pattern. Also, creating frames using elements from the repeated motifs adds aesthetic and contemporary value to decorative products. Finally, using various methods of combining colors creates unlimited variations of each pattern. At the end, reviving the Islamic motifs in contemporary vision enriches decorative products with aesthetic, artistic, and historical values of different Islamic periods. This makes the decorative products valuable that adds uniqueness to their surroundings.

Keywords: Islamic motifs, contemporary patterns, scarfs, decorative products

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Authors: Montoya C.A., Erina J., Erina I.

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The purpose of this research is to assess the performance and impact of CSR on business in the banking sector in Australia by applying the financial indicators of 20 ASX banks for the period from 2016-2017. The authors carried out CSR assessment in several stages of research: 1) gathering the nonfinancial and financial indicators of 20 ASX listed banks (available were only 16) from the annual reports of Australian banks for 2016 and 2017; 2) calculation of bank performance indicators using such financial indicators as return on assets (ROA), return on equity (ROE), efficiency ratio and net interest margin; 3) analysis of financial data using cross-sectional regression and answers to the research questions. Based on the obtained research results, the authors obtained answers to the initially raised research questions and came to a conclusion that Q1 - Insignificant positive coefficient result - slight positive relationship between CSR disclosure and business performance 2016; Q2 - Insignificant negative coefficient result - slight negative relationship between CSR disclosure and business performance 2017; Q3 - Insignificant positive coefficient result - slight positive relationship between CSR disclosure and business performance.

Keywords: Australia, banks, business performance, CSR

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Authors: Sagir Abubakar

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Organization must move along with the employees, because organization should adapt itself to the changing environment. The paper examines the effect of training and development on employee performance. Training and development has an important role in improve the performance, skills and attitude of employee in an organization. Training and development will also help an employee to do his present job or to prepare him for a higher position with increased responsibilities. The paper analyses the employee performance towards training and development conducted in some selected banks within Bauchi metropolis. Review of related literature was done on, training, training objectives, methods and development and its method. A census survey was carried out using staff of GTB and Skye Banks Bauchi branch where a total of 40 questionnaires were administered personally by the researcher and there were 100% responses. Correlation analysis was adopted for the analysis of data collected. The study concludes that 95% of respondents agreed that training and development are vital for both employee and organizations performance. They also suggest that training and development should be made compulsory for all categories of employee in an organization. Training and Development programmes are necessary in any organization for improving the quality of work of the employee.

Keywords: training, development, employee, performance, banks

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Authors: Mohammad Iqbal Malik

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Economic development of a country depends on its business ethics and values. Islamic teachings provide obvious guidelines in this regard. Mutual understanding, honesty and ethics possess central place in Islamic teachings. These teachings not only prohibit from amalgamation, black-marketing, hoarding and deception but also force to treat a customer amiably. Business ethics are broad spectrum in Islamic society due to these high moral values. One can estimate the importance of business ethics in Islam for economic development in Islamic society is evident by the Hadith of Prophet Muhammad (PBUH) in which He excluded a trader from Muslim community who did not behave in good manners with his clients. In this study we present impact of business ethics on economic development of a Muslim society. This study is based on basic teachings of Quran and Sunnah, Fiqh, Economics and other books. This study explores the behavior of Muslim traders and reveals useful inferences. Policy makers, traders, academia, scholars, and general public may learn lessons from this study with respect to business ethics in Islamic perspective.

Keywords: ethics, business, Islam, economic perspective

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Authors: Hafiz Khubaib Ur Rehman Awan

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Education used to play a central role in the formation and transfiguration of society since early times, owing in part to the centrality of scripture and its study in the human circles. According to the Islamic purpose of education, its pivotal contribution in the society is to produce a balanced growth of the entire persona of an individual through training the spirit, intellect, rational self, feelings, and bodily senses such that faith is infused into the whole personality. The purpose of this study is to attempt the exploration of the development of the Islamic religious curriculum in the Islamic world with an emphasis on Pakistan because this homeland came into existence under the name of Islam. This study persists of necessary historical background on the curricular reform of religious education in Pakistan and their impact on it and the suburban countries. However, the mainstay of this paper bases on reform in the religious education curriculum and the challenges faced by Pakistan and the Islamic world. Some suggestions are positioned at the end for areas of Islamic religious education and the improvement of Islamic curricular reform, especially in Pakistan and generally in Muslim countries.

Keywords: curricula, religious educational institutions, Pakistan, Muslim world, educational, religious , curricula

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Authors: Mohammad Saber Eslamlou

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Morphology of Islamic cities has been extensively studied by researchers of Islamic cities and different theories could be found about it. In this regard, there exist much difference in method of analysis, classification, recognition, confrontation and comparative method of urban morphology. The present paper aims to examine the previous methods, approaches and insights and that how Dr. Giulia Annalinda Neglia dealt with the analysis of morphology of Islamic cities. Neglia is assistant professor in University of Bari, Italy (UNIBA) who has published numerous papers and books on Islamic cities. I introduce her works in the field of morphology of Islamic cities. And then, her thoughts, insights and research methodologies are presented and analyzed in critical perspective. This is a qualitative research on her written works, which have been classified in three major categories. The first category consists mainly of her works on morphology and physical shape of Islamic cities. The results of her works’ review suggest that she has used Moratoria typology in investigating morphology of Islamic cities. Moreover, overall structure of the cities under investigation is often described linear; however, she’s against to define a single framework for the recognition of morphology in Islamic cities. She states that ‘to understand the physical complexity and irregularities in Islamic cities, it is necessary to study the urban fabric by typology method, focusing on transformation processes of the buildings’ form and their surrounding open spaces’ and she believes that fabric of each region in the city follows from the principles of an specific period or urban pattern, in particular, Hellenistic and Roman structures. Furthermore, she believes that it is impossible to understand the morphology of a city without taking into account the obvious and hidden developments associated with it, because form of building and their surrounding open spaces are written history of the city.

Keywords: city, Islamic city, Giulia Annalinda Neglia, morphology

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Authors: Vamsi G.

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Majority of the modern-day structures have less aesthetical value with minimum requirements set by foreign tribes. Numerous elements of traditional architecture can be incorporated into modern designs using appropriate principles to improve and enhance the functionality, aesthetics, and usability of any space. This paper reviews the diminishing ancient values of the traditional Islamic architecture. By introducing them into the modern-day structures like commercial, residential and recreational spaces in at least the Islamic states, the functionality of those spaces can be improved. For this, aspects like space planning, aesthetics, scale, hierarchy, value, and patterns are to be experimented with modern day structures. Case studies of few ancient Islamic architectural marvels are done to elaborate the whole. A brief analysis of materials and execution strategies are also a part of this paper. The analysis is formulated and is ready to design or redesign spaces using traditional Islamic principles and Elements of design to improve the quality of the architecture of modern day structures by studying the ancient Islamic architectural theories. For this, sources from the history and evolution of this architecture have been studied. Also, elements and principles of design from case studies of various mosques, forts, tombs, and palaces have been tabulated. All this data accumulated, will help revive the elements decorated by ancient principles in functional and aesthetical ways. By this, one of the most astonishing architectural styles can be conserved, reinstalled into modern day buildings and remembered.

Keywords: ancient architecture, architectural history, Islamic architecture, principles and elements

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Authors: Galit Truman Zinman

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The 'Islamic State' (IS) is one of the most successful jihadist groups in the modern history. The 'Islamic State' strives to realize the idea of erasing the borders between Muslim countries and establishing a wide Islamic caliphate. The 'Islamic State' is based on religious unity and opposition to existing political order. In this paper, the main argument is that the 'Islamic State' is characterized by two significant tendencies of state-building: preservation and change. The methodology of this study is based on the process tracing method and the analysis of primary sources: decisions, announcements and speeches of religious leaders of the Islamic State, slogans, rituals and symbols, audio and video clips produced by the Al-Hayat Media Center, films distributed on YouTube, as well as the content analysis of Dabiq`s articles (IS official Journal) and nasheeds (jihadi songs). The major findings of this study indicate that in practice the 'Islamic State' uses the same socio-political functions typical to the modern state (preservation), but introduces a different religious-ideological content (change). On the one hand, there is a preservation of the principles of existing modern state. Even with the rejection of secularization, globalization, and nationalism, there is an establishment of typical modern nation-state patterns. It is still a state entity, which has an ideological infrastructure, territory, population, governance and a monopoly on the use of violence, security services, justice system, tax collection, etc. All these functions characterize the modern state, and despite the desire of the 'Islamic State' to create a new kind of state, it reminds patterns of the typical modern nation-state. As for the religious-ideological content of the new state, here we can see a tendency of great change. The 'Islamic State' aims to create an Islamic caliphate which would allow the establishment of religious law and order, under a big commitment to return civilization to a seventh-century environment. The 'Islamic State' favors the fight against Western culture and its liberal ideology. It supports the struggle for global jihad against the unbelievers. Today, despite the territorial 'contraction' and the undermining of the organization's governance in Iraq and Syria, the 'Islamic State' continues to maintain its brand among jihadist activists around the world.

Keywords: Islamic State, Islamic caliphate, modern nation-state, religious law and order

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Authors: Nik Abdul Rahim Nik Abdul Ghani, Mat Noor Mat Zain, Ahmad Dahlan Salleh

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Ownership of asset is an important aspect in ensuring the validity of sale contract. Nevertheless, in Islamic finance, the issue of beneficial ownership as practiced in the current system is seriously debated among Shariah scholars. It has been argued as violating the real concept of ownership (milkiyyah) in Shariah law. This article aims at studying the status of beneficial ownership from the Shariah perspective. This study begins with examining the meaning of ownership and its attributes from the Islamic point of view and followed by the discussion on the origin of beneficial ownership from the legal perspective. The approach that is applied to clarify the concept of beneficial ownership is content analysis. Subsequently, this study explains some current applications of beneficial ownership in Islamic finance to be analyzed further from the Shariah aspect. The research finding suggests that beneficial ownership should be recognized as a real ownership due to the fact that Shariah allows the transfer of ownership after the execution of offer (ijab) and acceptance (qabul).

Keywords: beneficial ownership, ownership, Islamic finance, parameter

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Authors: Rukhsana Shaheen, Tahira Ifraq

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Interest based transactions led the advent of Islamic banking. In order to provide an alternative to Interest based banking, financial transactions found in classical books of fiqh were employed. Musharakah, Mudarabah, Murabahah Salam, Ijara, and some other modes were adopted. These modes were modified so that they can be adopted for banking and satisfy the needs of customers. Since the inception of Islamic banking, these modes are being used and with the passage of time, are being molded and experimented with to cater different kinds of customers and requirements. Human efforts cannot be errorless. These modes too bear legal defects which need an in-depth scrutiny and refinement. The aim of this paper is to dig the basis and rulings of these modes in classical books of fiqh and analyze its modification and adoption in Islamic banking and the legal defects that these modes are bearing. Paper will prove itself fruitful by providing remedies for the legal defects.

Keywords: financial instruments, legal defects, remedies, Islamic banking

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Authors: Wafa Ghonaim

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Though quite fast on growth, Islamic financing at large, and its diverse instruments, is a controversial matter among scholars. This is evident from the ongoing debates on its Shariah compliance. Arguments, however, are inciting doubts and concerns among clients about its credibility, which is harming this lucrative sector. The work here investigates, particularly, some issues related to the Tawarruq instrument. The work examines the issues of linking Murabaha and Wakala contracts, the reselling of commodities to same traders, and the transfer of ownerships. The work affirms that a multi-agent smart electronic market design would facilitate Shariah compliance. The smart market exploits the rational decision-making capabilities of autonomous proxy agents that enable the clients, traders, brokers, and the bank buy and sell commodities, and manage transactions and cash flow. The smart electronic market design delivers desirable qualities that terminate the need for Wakala contracts and the reselling of commodities to the same traders. It also resolves the ownership transfer issues by allowing stakeholders to trade independently. The bank administers the smart electronic market and assures reliability of trades, transactions and cash flow. A multi-agent simulation is presented to validate the concept and processes. We anticipate that the multi-agent smart electronic market design would deliver Shariah compliance of personal financing to the aspiration of scholars, banks, traders and potential clients.

Keywords: Islamic finance, share'ah compliance, smart electronic markets design, multiagent systems

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Authors: Gerhard Grebe, Johan Marx

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The aim of the study is to assess the state of operational risk management and the adoption of an appropriate risk culture in Ghanaian banks. The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Bank Supervision (BCBS) in 2021 and is proceeding with the implementation of the Basel III international regulatory framework for banks. The BoG’s Directive about risk management encourages, inter alia, the creation of an appropriate risk culture by Ghanaian banks. However, it is not evident how the risk management staff of Ghanaian banks experience the risk culture and the implementation of operational risk management in the banks where they are employed. Ghana is a developing economy, and it is addressing challenges with its organisational culture. According to Transparency International, successive Ghanaian governments claim to be fighting corruption, but little success has been achieved so far. This points to a possible lack of accountability, transparency, and integrity in the environment in which Ghanaian banks operate and which could influence their risk culture negatively. Purposive sampling was used for the survey, and the questionnaire was completed byGhanaian bank personnel who specializesin operational risk management, risk governance, and compliance, bank supervision, risk analyses, as well as the implementation of the operational risk management requirements of the Basel regulatory frameworks. The respondents indicated that they are fostering a risk culture and implementing monitoring and reporting procedures; the three lines of defence (3LOD); compliance; internal auditing; disclosure of operational risk information; and receiving guidance from the bank supervisor in an attempt to improve their operational risk management practices. However, the respondents reported the following challenges with staff members who are not inside the risk management departments(in order of priority), namelydemonstrating a risk culture, training and development; communication; reporting and disclosure; roles and responsibilities; performance appraisal; and technological and environmental barriers. Recommendations to address these challenges are provided

Keywords: ghana, operational risk, risk culture, risk management

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Authors: Syahruddin Sumardi Samindjaya, Indra Fajar Alamsyah, Junaidah Hashim

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Purpose: This study attempts to explore and presents a proposed recruitment model in Islamic university which aligned with holistic role. Design/methodology/approach: It is a conceptual paper in nature. In turn, this study is designed to utilize exploratory approach. Literature and document review that related to this topic are used as the methods to analyse the content found. Findings: Recruitment for any organization is fundamental to achieve its goal effectively. Staffing in universities is vital due to the important role of lecturers. Currently, Islamic universities still adopt the common process of recruitment for their academic staffs. Whereas, they have own characteristics which are embedded in their institutions. Furthermore, the FCWC (Foundation, Capability, Worldview and Commitment) model of recruitment proposes to suit the holistic character of Islamic university. Research limitation/implications: Further studies are required to empirically validate the concept through systematic investigations. Additionally, measuring this model by a designed means is appreciated. Practical implications: The model provides the map and alternative tool of recruitment for Islamic universities to determine the process of recruitment which can appropriate their institutions. In addition, it also allows stakeholders and policy makers to consider regarding Islamic values that should inculcate in the Islamic higher learning institutions. Originality/value: This study initiates a foundational contribution for an early sequence of research.

Keywords: academic staff, Islamic values, recruitment model, university

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Authors: Amira Khelil, Habib Affes

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Organization resource planning implementation success is important. Today`s competitors in business, in enterprise resource planning and in managing are becoming one of the main tools of achieving competitiveness in business. Resource technologies are considered as an infrastructure to create and maintain business to improve front and back-office efficiency and effectiveness. This study is significant to bring new ideas in determining the key antecedents which are technological resource planning implementation based on knowledge capacity perspectives and help to understand the key success factor in the Tunisian banks. Based on a survey of 150 front office Tunisian agents working in Tunisian banks with mixed capital, using Groupware system, only 51 respondents had given feedback to this survey. By using Warp PLS 3.0, through several tests the relationship between knowledge capability and Groupware implementation success having beta coefficient 0.37 and P-Value <0.01. This result highlights that knowledge capability of bank agent can influence the success of the Groupware implementation.

Keywords: groupware implementation, knowledge capacity, partial least squares method, Tunisian banks

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Authors: Hamid Mohamad Hosein Zadeh Hashemi

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In this article, in order to recognize the value of aesthetics of the place of wisdom and mysticism on Islamic art-architecture, and compare it with the influence of philosophy and thought on the "modern art of architecture" of the West, it examines the position of wisdom and philosophy in art Architecture ". In this regard, one can point out the unique status of "art of architecture" in human societies, which in two cultures of the East and West, based on the ideas of Islamic wisdom and Western thought, has taken a dual path, so that even today, even from the original And the basic "art of architecture" of its primary and academic has turned away and has undergone some kind of transformation. To this end, we examine some of the "aesthetics" positions based on the "art of architecture" in the broad sense of the word, in order to reflect on the historical course of this art, and with regard to the position of Islamic thought and Western thought, each of which originated from, but based on The basis of cultures, climate, and sociology, and others, are ultimately the result of an arbitrary result, namely the achievement of the aesthetic position of wisdom and mysticism on the "Islamic-Iranian" architecture of art "and its opposition to the position of philosophy and thought On modern art of modern architecture of the West.

Keywords: aesthetics, art, philosophy, the art of Architecture, wisdom

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Authors: Nawaf Alyaseen

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This paper provides a comparative analysis of the Islamic and Western public policy and morality principles governing trademarks. The aim of this paper is to explore public policy and morality principles that affect trademark registration and protection under Shari'a by using Kuwaiti law as a case study. The findings provide a better understanding of trademark recognition from the perspective of Shari'a and the requirements demanded by Islamic Shari'a, especially of those who deal with strict Shari'a jurisdiction countries. In addition, this understanding is required for corporations or legislators that wish to take into consideration Muslim consumers. The conclusion suggests that trademarks in Western and Islamic systems are controlled by a number of public policy and morality rules that have a direct effect on the registration and protection of trademarks. Regardless of the fact that there are many commonalities between the two systems, there are still fundamental differences.

Keywords: trademark, public policy and morality, Islamic sharia, western legal systems

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Authors: Aslam Faheem, Hunjra Ahmed Imran, Tayachi Tahar, Verhoeven Peter, Tariq Yasir

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We investigate the evidence of three risk-adjusted calendar anomalies in eight frontier markets. Our sample consists of the daily closing prices of their stock indices for the period of January 2006 to September 2019. We categorize the data with respect to day-of-the-week, Lunar calendar and Islamic calendar. Using Morgan Stanley Capital International (MSCI) eight Markets Index as our proxy of the market portfolio, most of the frontier markets tested exhibit calendar seasonality. We confirm that systematic risk varies with respect to day-of-the-week, Lunar months and Islamic months. After consideration of time-varying risk and applying Bonferroni correction, few frontier markets exhibit profitable investment opportunities from calendar return anomalies for active investment managers.

Keywords: asset pricing, frontier markets, market efficiency, Islamic calendar effects, Islamic stock markets

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Authors: Md. Arifur Rahman, Ummya Salma, Nazrul Islam

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Private sector banking business is one of the leading businesses of Bangladesh as it is profitable and directly attached with the economic development of the country. Training has got very high importance in this sector for increasing the performance of the banks. It has a long term impact on a number of aspects of the bank employees and their performances. It is an investment of the organization that is permanent in nature. Study shows that there are positive relationships between training and the employee commitment, job retention, job satisfaction and company performance. Training is also concerned with promotion, compensation, work-life policies, career development, task and contextual performance of the employees. As such, this paper aims at identifying the impact of training on employee commitment, job retention, job satisfaction and the performance of the private sector banks in Bangladesh. Both primary and secondary data were used to conduct the study. Data were collected from the bank officers who were trained in their banks. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics were used to describe the present situation of the banks and their employees. Inferential statistics were used to identify the factors and their significance concerned with training. Results show that there is a significant relationship between the performance and the training of the employees. It also shows that the training can motivate employees and encourage them to work hard. However, this study did not find any relationship between the commitment of the employees and the training. This study suggests that for increasing the performance of the banks, training is a must which is to be given deliberately for improving the specific skills of the bank employees.

Keywords: training, promotion, compensation, work-life policies

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Authors: Ziyad Motala

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It is often proclaimed by leasers in Muslim majority countries that Islamic Law does not permit dissent against a ruler. This paper will evaluate and discuss freedom of speech and dissent as found in concrete prophetic examples during the time of the Prophet Muhammad. It will further look at the examples and practices during the time of the four Noble Caliphs, the immediate successors to the Prophet Muhammad. It will argue that the positivist position of absolute obedience to a ruler is inconsistent with the prophetic tradition. The examples of the Prophet and his immediate four successors (whose lessons Sunni Islam considers to be a source of Islamic Law) demonstrates among the earliest example of freedom of speech and dissent in human history. That tradition frowned upon an inert and uninvolved citizenry. It will conclude with lessons for modern day Muslim majority countries arguing with empirical evidence that freedom of speech, dissent and the right to be governed by consensus versus coercion are fundamental requisites of Islamic law.

Keywords: islamic law, demoracy, freedom of speech, right to dissent

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Authors: Hakam Junus, Natassha Chrysanti

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The international relations theory currently is dominated by the western theoretical perspectives. Although the western theories are often used by many scholars as the universal perspective to explain the phenomena that occur in the world, sometimes the existing theories are failed to explain various issues that occur in the non-western world, for example, in the studies concerning on terrorism issues. Using inappropriate theories to explain the international issues such as terrorism will cause a failure in the decision-making process. The lack of understanding regarding Islamic perspective could be one of the factors that make international society unable to eradicate violent terrorism in the name of religion. Thus, this paper is argued that considering Islamic perspective as one of the major studies in international relations is significant to build a bridge between the Islamic world and the western world. It is believed that enhancing the study of Islamic perspective will create better understanding of the Islamic world and will enrich the study of international relations. This paper is conducted through a qualitative approach, in which data is obtained from the literature analysis. Considering Islamic perspective is important because Islam is listed as one of the major religions in the world. It is also due to the geopolitical spread of the Muslim in the world and the likelihood of the Islamic perspective to shape and influence Muslim’s behavior in the international level. The study of Islamic perspective in the international level is neither to contempt nor to oppose the existing western theories; rather it is needed in order to broaden the perspective in the international relations studies. The Islamic perspective is different compared to the non-western school of thought such as realism, and liberalism in some respects. The Islamic perspective cannot be explained through the lens of rationalist approaches. Compares to the post-positivism international relations perspectives, Islamic perspective is probably closer to the constructivist school of thought. However, the Islamic perspective offers some uniqueness that is not limited to the socially constructed ideas as in the constructivist arguments. This paper will be developed according to the discussion of three aspects that make Islamic perspective different with the existing international relations theories. The first aspect is the main actors in the international level. The second aspect is regarding on what appears to be the most important point for the actors in the international relations. The third aspect is regarding the pattern of relationship between the actors in the international level. In addition, this paper will briefly discuss the perspective of Islam in economics compare to the existing theories in the realm of international political economy.

Keywords: international relations, Islam, non-western theories, societies

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Authors: Seba Mohanty, Jitendra Mahakud

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Capital ratio is one of the major indicators of the stability of the commercial banks. Pertinent to its pervasive importance, over the years the regulators, policy makers focus on the maintenance of the particular level of capital ratio to minimize the solvency and liquidation risk. In this context, it is very much important to identify the relationship between capital and risk and find out the factors which determine the capital ratios of commercial banks. The study examines the relationship between capital and risk of the commercial banks operating in India. Other bank specific variables like bank size, deposit, profitability, non-performing assets, bank liquidity, net interest margin, loan loss reserves, deposits variability and regulatory pressure are also considered for the analysis. The period of study is 1997-2015 i.e. the period of post liberalization. To identify the impact of financial crisis and implementation of Basel II on capital ratio, we have divided the whole period into two sub-periods i.e. 1997-2008 and 2008-2015. This study considers all the three types of commercial banks, i.e. public sector, the private sector and foreign banks, which have continuous data for the whole period. The main sources of data are Prowess data base maintained by centre for monitoring Indian economy (CMIE) and Reserve Bank of India publications. We use simultaneous equation model and more specifically Two Stage Least Square method to find out the relationship between capital and risk. From the econometric analysis, we find that capital and risk affect each other simultaneously, and this is consistent across the time period and across the type of banks. Moreover, regulation has a positive significant impact on the ratio of capital to risk-weighted assets, but no significant impact on the banks risk taking behaviour. Our empirical findings also suggest that size has a negative impact on capital and risk, indicating that larger banks increase their capital less than the other banks supported by the too-big-to-fail hypothesis. This study contributes to the existing body of literature by predicting a strong relationship between capital and risk in an emerging economy, where banking sector plays a majority role for financial development. Further this study may be considered as a primary study to find out the macro economic factors which affecting risk and capital in India.

Keywords: capital, commercial bank, risk, simultaneous equation model

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Authors: Qamar Ul Haq, Talat Hussain, Mufti Fahad Ahmed Qureshi

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From the Islamic perspective, managing human resource meets various challenges, especially in the modern organizations. The adoption of Western practices in various aspects of management have caused gaps in justice, trustworthy, responsibility and other values of workers in Muslim countries. Thus, the interference of Islamic principles in human resource management (HRM) can be considered as a great solution for treating employees fairly and justly. This research aims to examine the level of Islamic practices in HRM, in which includes recruitment and selection, training and development, career development, performance management and rewards. The paper will analyze the relationships between HRM practices and organizational justice which focus on three elements, which are distributive justice, procedure justice and interactional justice. The data will be collected from selected Malaysian Government-Linked Company (GLC). Convenience sampling will be used to select the respondents for completing questionnaires. This conceptual paper essentially provides organizations with effective ways of understanding and implementing HRM by using Islamic principles. It also can be used as guidance for decision-making and day-today HR activities and will help organization to face uncertainties in the business world as well.

Keywords: human resource management, organizational justice, Islam, Islamic banking

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Authors: Bo Hyun Kim, Sarng Woo Karng

Abstract:

In constructing a hydrogen refueling station, minimizing the volume and reducing the number of banks enable lessening the construction cost. This study aims at performing the dynamic simulation on 250 kg/day of a refueling station for light-duty vehicles. The primary compressor boosts hydrogen from a tube trailer of 250 to 480 bar and stores it in a medium-pressure bank. Then, additional compression of hydrogen from 480 to 900 bar is carried out and stored in a high-pressure bank. Economic analysis was conducted considering the amount of electricity consumed by compression corresponding to the volume and the number of banks (cascade system) in charging mode. NIST REFPROP was selected as the equation of state on the ASPEN HYSYS for thermodynamic analysis of the tube-trailer, the compressors, the chillers, and the banks. Compared to a single high-pressure bank system of 3000 L, the volume of the cascade high-pressure banks (bank1: 250 L and bank 2: 1850 L) was reduced by 30%, and the power consumption of the chiller for precooling was also decreased by 16%.

Keywords: light-duty vehicles, economic analysis, cascade system, hydrogen refueling station

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Authors: Waseem Makai

Abstract:

The term ‘political Islam’ now seem to have gained the centre stage in every discourse pertaining to Islamic legitimacy and compatibility in modern civilisations. A never ceasing tradition of the philosophy of caliphate that has kept overriding the options of any alternate political institution in the Muslim world still permeates a huge faction of believers. Fully accustomed with the proliferation of changes and developments in individual, social and natural dispositions of the world, Islamic theologians retaliated to this flux through both conventional and modernist approaches. The so-called conventional approach was quintessential of the interpretations put forth by Syed Maududi, with new comprehensive, academic and powerful vigour, as never seen before. He generated the avant-garde scholarship which would bear testimony to his statements, made to uphold the political institution of Islam as supreme and noble. However, it was not his trait to challenge the established views but to codify them in such a bracket which a man of the 20th century would find captivating to his heart and satisfactory to his rationale. The delicate microcosms like selection of a caliph, implementation of Islamic commandments (Sharia), interest free banking sectors, imposing tax (Jazyah) on non-believers, waging the holy crusade (Jihad) for the expansion of Islamic boundaries, stoning for committing adulteration and capital punishment for apostates were all there in his scholarship which he spent whole of his life defending in the best possible manner. What and where did he went wrong with all this, was supposedly to be notified later, by his once been disciple, Javed Ahmad Ghamidi. Ghamidi is being accused of struggling between Scylla and Charybdis as he tries to remain steadfast to his basic Islamic tenets while modernising their interpretations to bring them in harmony with the Western ideals of democracy and liberty. His blatant acknowledgement of putting democracy at a high pedestal, calling the implementation of Sharia a non-mandatory task and denial to bracket people in the categories of Zimmi and Kaafir fully vindicates his stance against conventional narratives like that of Syed Maududi. Ghamidi goes to the extent of attributing current forms of radicalism and extremism, as exemplified in the operations of organisations like ISIS in Iraq and Syria and Tehreek-e-Taliban in Pakistan, to such a version of political Islam as upheld not only by Syed Maududi but by other prominent theologians like Ibn-Timyah, Syed Qutub and Dr. Israr Ahmad also. Ghamidi is wretched, in a way that his allegedly insubstantial claims gained him enough hostilities to leave his homeland when two of his close allies were brutally murdered. Syed Maududi and Javed Ghamidi, both stand poles apart in their understanding of Islam and its political domain. Who has the appropriate methodology, scholarship and execution in his mode of comprehension, is an intriguing task, worth carrying out in detail.

Keywords: caliphate, democracy, ghamidi, maududi

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Authors: Ilhan Keskin, Hasan Bulent Kantarci

Abstract:

In this study, one of the tools of Islamic financing known as “Sukuk” a non-interest bearing investment which has started to be implemented in Turkey and the world as a whole is discussed. In order to increase the vitality and efficiency of the economy, by taking lessons from the recent economic crisis new developments in the banking and investment sector are being expanded. The purpose of all investors is to obtain more revenue through the use of capital. The inability of traditional investment tools to meet the expectations of investors and the interest based financial system where one investor benefits at the expense of another there has been the need for a different, reliable and non-interest bearing financial market that is consistent with the Islamic rule. As a result an alternative and more reliable interest free financing tool “Sukuk” rental certificates covering people who are sensitive to Islamic rules, appeal to all segments, hidden remaining capital that contributes to the economy, reduce disparities in income distribution, common risk sharing system of profit and loss sharing has emerged. Today, for the structural countries by examining the state of the world market economy the applicability, enactment and future issues associated with this attractive kind of Islamic finance namely the “Sukuk” market has been explained.

Keywords: Islamic finance, islamic markets, non-interest bearing, rental certificates

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Authors: Mohammad Enayet Hossain, Nur Farhah Mahadi

Abstract:

The global COVID-19 pandemic has contaminated millions of people at a startling rate. The COVID-19 pandemic came out of mediocre and has since spread all over the world, causing to record 5 million deaths worldwide in just a few months. The economic crisis has triggered a global contraction, leading to an economic collapse expected over 2020-2021. This study examines whether Islamic social finance can effectively mitigate the dangers of humanitarian catastrophes. The study provides a multirange method for maximizing the advantage of Islamic social financings tools such as zakat and waqf. The information, documents, and data for this study are gathered using a qualitative method. The study employed ongoing research, literature review, news stories, reports, and trusted online sources. Eventually, this may add to knowledge by examining the role of Islamic social finance in the current Covid-19 crisis. The findings have consequences for governments and policymakers who want to solve the COVID-19 problem with Islamic social finance ideas and solutions, thereby enhancing people's social well-being and the global economy's development.

Keywords: covid-19 pandemic, Islamic social finance, zakat, waqf

Procedia PDF Downloads 68