The phenomenal growth of Islamic finance in the last few decades has been accompanied by a host of interesting questions and challenges. One of the critical challenges is how Islamic financial institutions can be motivated to participate in the 'equity-like' profit-and-loss sharing (PLS) contracts. It is observed that Islamic banks are reluctant to participate in the pure PLS scheme which is manifested by the rising concentration of investment on murabaha or mark-up financing. This phenomenon has been the hotbed of academic criticism on the contemporary practice of Islamic banking. This book explains the 'murabaha syndrome' in light of the incentive provided by the current institutional framework and what are the changes required in the governance structure to mend this anomaly.
"The book addresses many recent and major issues in Islamic economics and finance; the concentration of services in Murabaha and its syndrome throughout the world, the critique on the comparison of Riba vs. interest, and Gharar vs. uncertainty, lack of emphasis on Islamic microfinance, the arguments on Sukuk, the emergence of Islamic venture capital and many others…" ─ Turkish Journal of Islamic Economics, Volume 6, Issue 2, 2019
Introduction (Yasushi Suzuki and Mohammad Dulal Miah)
Part I: Dilemmas and Challenges on the Prohibition of Riba and Gharar
1. Heterodox vs. Islamic View on Interest and Uncertainty: Contradictions and Commonalities (Yasushi Suzuki and Mohammad Dulal Miah)
2. A Critique to a Naive Critique to 'Murabaha' 'Tawarruq' Syndrome (Mohammad Dulal Miah and Yasushi Suzuki)
3. An Inquiry into the Scope of Acceptable Gharar (Mohammad Hashim Kamali, Yasushi Suzuki and Mohammad Dulal Miah)
Part II: Issues in Islamic Equity- and Micro-Finance
4. Altruism and Reciprocity in Islamic Equity Fund: New Institutional and Philosophical Speculations (Yasushi Suzuki and Mohammad Dulal Miah)
5. Anatomy of Islamic Venture Capital: Typology of Bahraini / Indonesian Islamic VC Firms (Yasushi Suzuki, A.K.M. Kamrul Hasan and Sigit Pramono)
6. Sukuk Environment and Challenges in Bangladesh and Malaysia (with the supplement of the Japan-sukuk case) (S.M. Sohrab Uddin, Nahid Afroz and Yasushi Suzuki)
7. A Comparative study on the Grameen and Islamic modes of microfinance in Bangladesh with Reference to Islamic Microfinance in Pakistan (Yasushi Suzuki, Helal Uddin and Mohammad Dulal Miah)
8. An Impact Assessment of Islamic Saving-Loan and Financing Cooperatives in Indonesia: Preliminary Findings from Artificial Neural Networks Technique (Yasushi Suzuki, Saiful Anwar, Sigit Pramono and Trisiladi Supriyanto)
Part III: Dilemmas and Challenges in Governance Structure
9. Anatomy of Governance Structure in the Mode of Islamic Finance: An Emphasis on the Governance over Shari'ah Board (Yasushi Suzuki, Sigit Pramono and Oni Sahroni)
10. A Comparative study on Shari’ah Compliance Frameworks: Is the Integrated or Separated Model Well-Suited to Bangladesh? (S.M. Sohrab Uddin, Asif Nawaz Chowdhury and Yasushi Suzuki)
11. Alternative Views upon the 'Division of Work' and 'Specialization' Toward a New Mode of Profit-Loss Sharing (Yasushi Suzuki and Mohammad Dulal Miah)
Conclusion (Yasushi Suzuki and Mohammad Dulal Miah)
There is an increasing need for western politicians, financiers, bankers, and indeed the western business community in general to have access to high quality and authoritative texts on Islamic financial and business practices. Drawing on expertise from across the Islamic world, this new series will provide carefully chosen and focused monographs and collections, each authored/edited by an expert in their respective field all over the world.
The series will be pitched at a level to appeal to middle and senior management in both the western and the Islamic business communities. For the manager with a western background the series will provide detailed and up-to-date briefings on important topics; for the academics, postgraduates, business communities, manager with western and an Islamic background the series will provide a guide to best practice in business in Islamic communities around the world, including Muslim minorities in the west and majorities in the rest of the world.