Islamic insurance has a more value-added substance than conventional insurance, and it is the ultimate solution for anyone seeking financial protection for their potential misfortune. However, the penetration ratio has been low even in Muslim majority countries, including Malaysia. While some existing studies examined the factors that contribute to improving the penetration rate, almost no studies examined satisfaction as the primary target. This study conducted a questionnaire for both Muslims and non-Muslims in Malaysia to investigate the factors that determine the satisfaction of the conventional and Islamic insurances. The Snowball sampling method was used, and 396 responses were obtained from Muslim and non-Muslim insurance policyholders in Selangor and Kuala Lumpur. The extended version of the Customer Satisfaction (CS) analysis was developed and applied to the Malaysian insurance policyholders’ data. There are three main results in this study. First, the factors that determine both Muslims’ and non-Muslims’ satisfaction with insurance were different. Second, while non-Muslims in Malaysia were satisfied with both the conventional and Islamic insurances, Muslims were more confident with the Islamic insurance than conventional ones. Furthermore, the current Islamic insurance would be accepted with higher satisfaction by non-Muslims than Muslims. Third, the extended CS analysis successfully detected factors that determined satisfaction for both the conventional and Islamic insurances, suggesting the extended CS analysis was effective.
{"title":"Muslims and Non-Muslims’ Satisfaction of the Islamic Insurance in Malaysia: Application of the Extended Customer Satisfaction Analysis","authors":"Yukichika Kawata, S. Salman","doi":"10.26414/a189","DOIUrl":"https://doi.org/10.26414/a189","url":null,"abstract":"Islamic insurance has a more value-added substance than conventional insurance, and it is the ultimate solution for anyone seeking financial protection for their potential misfortune. However, the penetration ratio has been low even in Muslim majority countries, including Malaysia. While some existing studies examined the factors that contribute to improving the penetration rate, almost no studies examined satisfaction as the primary target. This study conducted a questionnaire for both Muslims and non-Muslims in Malaysia to investigate the factors that determine the satisfaction of the conventional and Islamic insurances. The Snowball sampling method was used, and 396 responses were obtained from Muslim and non-Muslim insurance policyholders in Selangor and Kuala Lumpur. The extended version of the Customer Satisfaction (CS) analysis was developed and applied to the Malaysian insurance policyholders’ data. There are three main results in this study. First, the factors that determine both Muslims’ and non-Muslims’ satisfaction with insurance were different. Second, while non-Muslims in Malaysia were satisfied with both the conventional and Islamic insurances, Muslims were more confident with the Islamic insurance than conventional ones. Furthermore, the current Islamic insurance would be accepted with higher satisfaction by non-Muslims than Muslims. Third, the extended CS analysis successfully detected factors that determined satisfaction for both the conventional and Islamic insurances, suggesting the extended CS analysis was effective.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"281 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84916210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Islamic (participation) banks in Turkey are required to apply international accounting standards in their accounting and reporting practices, while their counterparts in Bahrain apply the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. The main objective of this paper is to reveal the relation between Islamic and international accounting standards, discussed in previous studies, by comparing the compliance to AAOIFI accounting standards by Islamic banks in both Turkey and Bahrain. The source of information in this study is secondary data provided in the annual reports of the Islamic banks in Turkey and Bahrain for the year 2017. In order to measure compliance, an unweighted disclosure index was used. The outcomes of this study show that, since AAOIFI accounting standards are compulsory in Bahrain, the level of compliance with AAOIFI standards in relation to general presentation and disclosure in the financial statements of Islamic banks in Turkey is lower than the compliance achieved by their counterparts in Bahrain. Due to the average compliance level achieved by Islamic banks (using the unweighted disclosure index) in Turkey (54.6%), and since all banks in Turkey apply international financial reporting standards and international accounting standards, it is found that there is a relation between AAOIFI and International Accounting Standards Board standards even though they are different. Surprisingly, in the case of Bahrain’s Islamic banks, the standard deviation of the total compliance score is 8.66, which indicates an important difference among the Islamic banks in Bahrain in this regard. It is also found that the current practices of participation banks in Turkey do not adequately meet the financial statements and disclosure standards in accordance with the AAOIFI.
{"title":"Conformity of Islamic Banks with AAOIFI Standards for General Presentation and Disclosure in Turkey and Bahrain","authors":"Yusuf Avsar, Ozan Ozdemir","doi":"10.26414/a291","DOIUrl":"https://doi.org/10.26414/a291","url":null,"abstract":"Islamic (participation) banks in Turkey are required to apply international accounting standards in their accounting and reporting practices, while their counterparts in Bahrain apply the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. The main objective of this paper is to reveal the relation between Islamic and international accounting standards, discussed in previous studies, by comparing the compliance to AAOIFI accounting standards by Islamic banks in both Turkey and Bahrain. The source of information in this study is secondary data provided in the annual reports of the Islamic banks in Turkey and Bahrain for the year 2017. In order to measure compliance, an unweighted disclosure index was used. The outcomes of this study show that, since AAOIFI accounting standards are compulsory in Bahrain, the level of compliance with AAOIFI standards in relation to general presentation and disclosure in the financial statements of Islamic banks in Turkey is lower than the compliance achieved by their counterparts in Bahrain. Due to the average compliance level achieved by Islamic banks (using the unweighted disclosure index) in Turkey (54.6%), and since all banks in Turkey apply international financial reporting standards and international accounting standards, it is found that there is a relation between AAOIFI and International Accounting Standards Board standards even though they are different. Surprisingly, in the case of Bahrain’s Islamic banks, the standard deviation of the total compliance score is 8.66, which indicates an important difference among the Islamic banks in Bahrain in this regard. It is also found that the current practices of participation banks in Turkey do not adequately meet the financial statements and disclosure standards in accordance with the AAOIFI.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"29 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81764368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study explores the role of agent in the Islamic modes of financing in order to identify ambiguities/issues related with the role of agent in Murabaha, Salam, Istisna and Tijara. The research further discovers the view of the Shari’ah experts with respect to such ambiguities so that they can either be verified as Shari’ah issues or non- Shari’ah issues. The role of agent was examined using content analysis of the model documents used by Islamic banks followed by soliciting the views of the Shari’ah specialists through interviews. No Shari’ah issue was found in hiring the customer as agent by the bank in any Islamic modes or binding the agent to act as an “undisclosed agent”. Conversely, the supplier’s risk, was declared to be the obligation of the bank and transferring this risk to the agent was observed as a real issue from Shari’ah point of view in the practice of Murabaha. Similarly, the principal is not allowed to charge any penalty to the agent if he is working without negligence and in good faith. Shifting charges like transportation, storage, etc., to the agent is not correct. However, no Shari’ah issue was found in binding the agent to provide collateral/security, etc., to the bank. Nevertheless, no consensus was observed on binding the agent to provide corporate guarantee. This research appears to be a preliminary but important attempt of its nature examining the critical role of agent in Islamic modes of financing adding value to the body of knowledge in Islamic banking.
{"title":"The Role of Agent in Islamic Financing: A Critique","authors":"B. A. Shah","doi":"10.26414/a2632","DOIUrl":"https://doi.org/10.26414/a2632","url":null,"abstract":"This study explores the role of agent in the Islamic modes of financing in order to identify ambiguities/issues related with the role of agent in Murabaha, Salam, Istisna and Tijara. The research further discovers the view of the Shari’ah experts with respect to such ambiguities so that they can either be verified as Shari’ah issues or non- Shari’ah issues. The role of agent was examined using content analysis of the model documents used by Islamic banks followed by soliciting the views of the Shari’ah specialists through interviews. No Shari’ah issue was found in hiring the customer as agent by the bank in any Islamic modes or binding the agent to act as an “undisclosed agent”. Conversely, the supplier’s risk, was declared to be the obligation of the bank and transferring this risk to the agent was observed as a real issue from Shari’ah point of view in the practice of Murabaha. Similarly, the principal is not allowed to charge any penalty to the agent if he is working without negligence and in good faith. Shifting charges like transportation, storage, etc., to the agent is not correct. However, no Shari’ah issue was found in binding the agent to provide collateral/security, etc., to the bank. Nevertheless, no consensus was observed on binding the agent to provide corporate guarantee. This research appears to be a preliminary but important attempt of its nature examining the critical role of agent in Islamic modes of financing adding value to the body of knowledge in Islamic banking.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"29 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80792059","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aimed to indicate the general trend of Islamic economics and finance (IEF) studies through bibliometric analysis. Therefore, the Web of Science (WoS), which is one of the most respected databases, for the period 1975-2019 with a total of 1,120 documents is examined. The documents were classified, analyzed, and visualized through VOS-viewer software, and the main trends in terms of countries, organizations, authors, and publishers were indicated. This study revealed the trends of IEF literature by reviewing thirty articles with the most co-citations and creating a keyword map. The findings showing the current state and trends of the IEF discipline are quite remarkable. It has been found that Malaysia ranks first among countries and institutions in terms of the number of publications. While Abbas Mirakhor was the author with the most publications, the International Journal of Islamic and Middle Eastern Finance and Management was the most publishing institution. Besides, in keyword network analysis, it is seen that the institutions and subjects of Islamic finance are dominant in Islamic economics and finance studies. These findings bringing the “Is the IEF discipline financialized?” debate back to the agenda is expected to inspire many new study topics.
本研究旨在通过文献计量分析，揭示伊斯兰经济与金融研究的总体趋势。因此，最受尊敬的数据库之一Web of Science (WoS)在1975-2019年期间共检查了1120份文件。通过VOS-viewer软件对这些文件进行分类、分析和可视化，并指出了国家、组织、作者和出版商的主要趋势。本研究通过回顾共被引次数最多的30篇文章，并绘制关键词图，揭示了IEF文献的趋势。研究结果显示了IEF学科的现状和趋势，这是非常引人注目的。据发现，马来西亚的出版物数量在国家和机构中排名第一。Abbas Mirakhor是发表论文最多的作者，而International Journal of Islamic and Middle Eastern Finance and Management是发表论文最多的机构。此外，在关键词网络分析中可以看出，伊斯兰金融的机构和学科在伊斯兰经济学和金融学研究中占主导地位。这些发现带来了“国际金融论坛纪律金融化了吗?”的辩论被重新提上日程，有望激发出许多新的研究课题。
{"title":"Looking at the ‘Big Picture’ in Islamic Economics and Finance Literature: A Bibliometric Analysis of WoS Indexed Documents","authors":"Ali Can Yenice, Mucahit Ozdemir, Abdussamed Koc","doi":"10.26414/a481","DOIUrl":"https://doi.org/10.26414/a481","url":null,"abstract":"This study aimed to indicate the general trend of Islamic economics and finance (IEF) studies through bibliometric analysis. Therefore, the Web of Science (WoS), which is one of the most respected databases, for the period 1975-2019 with a total of 1,120 documents is examined. The documents were classified, analyzed, and visualized through VOS-viewer software, and the main trends in terms of countries, organizations, authors, and publishers were indicated. This study revealed the trends of IEF literature by reviewing thirty articles with the most co-citations and creating a keyword map. The findings showing the current state and trends of the IEF discipline are quite remarkable. It has been found that Malaysia ranks first among countries and institutions in terms of the number of publications. While Abbas Mirakhor was the author with the most publications, the International Journal of Islamic and Middle Eastern Finance and Management was the most publishing institution. Besides, in keyword network analysis, it is seen that the institutions and subjects of Islamic finance are dominant in Islamic economics and finance studies. These findings bringing the “Is the IEF discipline financialized?” debate back to the agenda is expected to inspire many new study topics.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"11 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82395069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to present a new estimate on the GDP and per capita GDP levels of the Ottoman Empire between 1870 and 1913. Since the earlier estimates employ different methods, this study re-combines data series using reliable secondary sources while attempting to incorporate the distribution margins, includes industrial production excluded from the industrial census, and correcting missing information in certain agricultural productions. The inclusion of “Distribution Margins” (DMs) that adjust from producer to market prices reflects the price difference which entails diverse GDP and per capita GDP levels. The DMs are crucial, especially to incorporating costs of distributing industrial and agricultural products between the center and periphery. This research concludes that GDP and per capita GDP levels were higher than those made by earlier estimates. The method and findings of this study make contributions to the recent discussions on the economic performance of the Ottoman Empire, particularly for the period preceding the First World War. This study also suggests new research areas to further improve future studies on GDP and per capita GDP levels of the Ottoman Empire.
{"title":"The Ottoman Economy (1870-1913): Preliminary Second-Generation Estimates","authors":"M. Bulut, Bora Altay","doi":"10.26414/a485","DOIUrl":"https://doi.org/10.26414/a485","url":null,"abstract":"The purpose of this study is to present a new estimate on the GDP and per capita GDP levels of the Ottoman Empire between 1870 and 1913. Since the earlier estimates employ different methods, this study re-combines data series using reliable secondary sources while attempting to incorporate the distribution margins, includes industrial production excluded from the industrial census, and correcting missing information in certain agricultural productions. The inclusion of “Distribution Margins” (DMs) that adjust from producer to market prices reflects the price difference which entails diverse GDP and per capita GDP levels. The DMs are crucial, especially to incorporating costs of distributing industrial and agricultural products between the center and periphery. This research concludes that GDP and per capita GDP levels were higher than those made by earlier estimates. The method and findings of this study make contributions to the recent discussions on the economic performance of the Ottoman Empire, particularly for the period preceding the First World War. This study also suggests new research areas to further improve future studies on GDP and per capita GDP levels of the Ottoman Empire.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"42 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78027642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Considering the views expressed above, it is necessary to examine the concept of Islamic Economics, which expresses the effects and scope of Islam on the field of economy more closely. To make the said study, Zeyneb Hafsa Orhan’s work called Basic Subjects of Economics and Islamic Economy will be examined because it is both up-to date and prepared as a result of long researches. Consisting of 300 pages, the study includes 14 basic chapters.
{"title":"Fundamentals of Economics and Islamic Economy","authors":"Güldenur Çetin","doi":"10.26414/br3125","DOIUrl":"https://doi.org/10.26414/br3125","url":null,"abstract":"Considering the views expressed above, it is necessary to examine the concept of Islamic Economics, which expresses the effects and scope of Islam on the field of economy more closely. To make the said study, Zeyneb Hafsa Orhan’s work called Basic Subjects of Economics and Islamic Economy will be examined because it is both up-to date and prepared as a result of long researches. Consisting of 300 pages, the study includes 14 basic chapters.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"2 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2021-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75658675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A unique contribution of the book is its depiction of economic thought through the lenses of many personalities representing varied sections of the society. So, by gathering these personalities of statesmen to literati, Islahi tries to present an encompassing spectrum of the economic thought produced in the 19th century with an exclusive look to the Arab world. Moreover, Islahi puts an effort to contextualize the views of these personalities with references to the political and economic conditions surrounding them.
{"title":"Economic Thinking of Arab Muslim Writers During the Nineteenth Century","authors":"Memduh Erdogan","doi":"10.26414/br3132","DOIUrl":"https://doi.org/10.26414/br3132","url":null,"abstract":"A unique contribution of the book is its depiction of economic thought through the lenses of many personalities representing varied sections of the society. So, by gathering these personalities of statesmen to literati, Islahi tries to present an encompassing spectrum of the economic thought produced in the 19th century with an exclusive look to the Arab world. Moreover, Islahi puts an effort to contextualize the views of these personalities with references to the political and economic conditions surrounding them.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"166 1","pages":""},"PeriodicalIF":0.3,"publicationDate":"2021-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73817378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Razali Haron, Nur Ermiedza Binti Radzali, Naji Mansour Nomran
This study examines the impact of Shariah Board (SB) characteristics on the financial and social performance of Islamic banks (IBs) from the perspectives of Agency Theory (AT), Stewardship Theory (ST) and the Resource Dependence Theory (RDT). To meet its objective, GMM is employed on a panel data of 15 IBs in Malaysia from 2010 to 2018 covering the pre and post implementation of IFSA 2013 with three performance measurements; ROA and ROE (financial performance) and Zakat over Equity (social performance). SB education, SB reputation, and SB expertise are positively related to IBs performance; while SB remuneration and SB cross membership are negatively related to performance. SB size is found to be insignificant. The study therefore concludes SB is relevant to the performance of IBs. The study also discusses the response of SB at the central bank (SAC-BNM) via its new ruling on financing restructuring in alleviating the hardship of IBs’ customers during the pandemic crisis.
本研究从代理理论(AT)、管理理论(ST)和资源依赖理论(RDT)的角度考察了伊斯兰教法董事会(SB)特征对伊斯兰银行财务和社会绩效的影响。为了实现其目标，GMM采用了2010年至2018年马来西亚15家ib的面板数据，涵盖了2013年IFSA实施前后的三个绩效衡量指标;ROA和ROE(财务绩效)和Zakat over Equity(社会绩效)。商学院教育、商学院声誉和商学院专业知识与商学院绩效呈正相关;而SB薪酬和SB交叉成员与绩效呈负相关。SB的大小被发现是无关紧要的。因此，该研究得出结论，SB与IBs的表现有关。该研究还讨论了中央银行(SAC-BNM)的SB通过其关于融资重组的新裁决的反应，以减轻大流行危机期间ib客户的困难。
{"title":"The Impact of Shariah Board on the Performance of Islamic Banks and the Relevance of Shariah Committee (BNM) New Ruling on the Restructuring of Islamic Financing Facility during the Pandemic Crisis","authors":"Razali Haron, Nur Ermiedza Binti Radzali, Naji Mansour Nomran","doi":"10.26414/A2396","DOIUrl":"https://doi.org/10.26414/A2396","url":null,"abstract":"This study examines the impact of Shariah Board (SB) characteristics on the financial and social performance of Islamic banks (IBs) from the perspectives of Agency Theory (AT), Stewardship Theory (ST) and the Resource Dependence Theory (RDT). To meet its objective, GMM is employed on a panel data of 15 IBs in Malaysia from 2010 to 2018 covering the pre and post implementation of IFSA 2013 with three performance measurements; ROA and ROE (financial performance) and Zakat over Equity (social performance). SB education, SB reputation, and SB expertise are positively related to IBs performance; while SB remuneration and SB cross membership are negatively related to performance. SB size is found to be insignificant. The study therefore concludes SB is relevant to the performance of IBs. The study also discusses the response of SB at the central bank (SAC-BNM) via its new ruling on financing restructuring in alleviating the hardship of IBs’ customers during the pandemic crisis.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"8 1","pages":"423-443"},"PeriodicalIF":0.3,"publicationDate":"2021-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87098575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The COVID-19 pandemic crisis is projected to plunge over half a billion people (580 million) globally into extreme poverty. This exploratory paper proposes an innovative Social Synergy sukuk (Double-S sukuk) for alleviating the alarming upsurge in extreme poverty triggered by the pandemic in the face of limited resources. The Double-S sukuk is designed with Multilateral Development Banks (MDBs);such as Islamic Development Bank subscribing to the sukuk at a discounted profit rate, issued by a country facing the pains of the pandemic. The profit will be paid by a charitable Non-Governmental Organization;such as Bill & Melinda Gates Foundation as an incentive to the crises country contingent upon judicious utilization of the funds for the pre-agreed social targets achieved within timely milestones that trickle down to uplift the citizens from the pandemic pains of extreme poverty. The country will only pay the principal component. Furthermore, a suitable MDB;such as Multilateral Investment Guarantee Agency (MIGA) will issue a charitable guarantee to enhance the sukuk rating and cut issuance costs. This enhancement makes the sukuk an attractive BASEL III High-quality-liquid-asset (HQLA). Instead of begging the public for charity, the Double-S sukuk will be open to the public to invest alongside MDBs for a discounted profit rate to crowd-in the social/ethical conscious private sector to raise cheaper and larger funds for an apt synergistic crisis alleviation. The methodology used in this study is qualitative based on content analysis of relevant academic journals, industry reports and policy documents.
预计2019冠状病毒病大流行危机将使全球超过5亿人(5.8亿人)陷入极端贫困。这篇探索性的论文提出了一种创新的社会协同伊斯兰债券(Double-S sukuk)，以在资源有限的情况下缓解疫情引发的极端贫困的惊人增长。双s伊斯兰债券是由多边开发银行(mdb)设计的，如伊斯兰开发银行(Islamic Development Bank)以折扣价认购伊斯兰债券，这些债券是由面临疫情痛苦的国家发行的。利润将由比尔和梅林达·盖茨基金会等慈善非政府组织支付，作为对危机国家的一种奖励，条件是资金能否合理利用，在及时的里程碑内实现预先商定的社会目标，这些目标将逐步降低，使公民摆脱普遍存在的极端贫困的痛苦。国家将只支付主要部分。此外，合适的多边开发银行，如多边投资担保机构(MIGA)将提供慈善担保，以提高伊斯兰债券评级并降低发行成本。这种增强使得伊斯兰债券成为巴塞尔协议III高质量流动资产(HQLA)。与乞求公众施舍不同，双s伊斯兰债券将向公众开放，与多边开发银行一起以折扣价投资，从而吸引具有社会/道德意识的私营部门，以更低成本和更大规模的资金，以适当的协同缓解危机。本研究采用的方法是定性的，主要基于相关学术期刊、行业报告和政策文件的内容分析。
{"title":"Social Synergy Sukuk (Double-S Sukuk): A Solution for Pandemic Crisis","authors":"Sani Suleiman Dalhatu, Ashurov Sharofiddin","doi":"10.26414/a2372","DOIUrl":"https://doi.org/10.26414/a2372","url":null,"abstract":"The COVID-19 pandemic crisis is projected to plunge over half a billion people (580 million) globally into extreme poverty. This exploratory paper proposes an innovative Social Synergy sukuk (Double-S sukuk) for alleviating the alarming upsurge in extreme poverty triggered by the pandemic in the face of limited resources. The Double-S sukuk is designed with Multilateral Development Banks (MDBs);such as Islamic Development Bank subscribing to the sukuk at a discounted profit rate, issued by a country facing the pains of the pandemic. The profit will be paid by a charitable Non-Governmental Organization;such as Bill & Melinda Gates Foundation as an incentive to the crises country contingent upon judicious utilization of the funds for the pre-agreed social targets achieved within timely milestones that trickle down to uplift the citizens from the pandemic pains of extreme poverty. The country will only pay the principal component. Furthermore, a suitable MDB;such as Multilateral Investment Guarantee Agency (MIGA) will issue a charitable guarantee to enhance the sukuk rating and cut issuance costs. This enhancement makes the sukuk an attractive BASEL III High-quality-liquid-asset (HQLA). Instead of begging the public for charity, the Double-S sukuk will be open to the public to invest alongside MDBs for a discounted profit rate to crowd-in the social/ethical conscious private sector to raise cheaper and larger funds for an apt synergistic crisis alleviation. The methodology used in this study is qualitative based on content analysis of relevant academic journals, industry reports and policy documents.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"2 11 1","pages":"469-480"},"PeriodicalIF":0.3,"publicationDate":"2021-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86482996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Islamic microfinance institutions play a major role in the provision of financial services to the poor and underprivileged through non-interest, equity-based products and services. To achieve these critical objectives, however, they need to be financially sustainable, which is threatened by the current economic and financial crisis caused by the Covid-19 pandemic. The objective of this paper is to review the determinants of financial sustainability of microfinance institutions with a view to drawing lessons for Islamic microfinance banks in Nigeria. The paper utilized the literature review methodology to synthesize research findings in the area. The review revealed that the major determinants of financial sustainability of microfinance institutions are the capital structure, asset size, and financial innovation. Others are good risk management and corporate governance frameworks. The paper thus recommended that Islamic microfinance institutions in Nigeria should maintain a robust capital structure that relies more on equity, a lean but diversified Board, and utilize more technology-based services. Most importantly, they should emphasize profit and loss sharing principles in their operations.
{"title":"Determinants of Financial Sustainability for Microfinance Institutions: Lessons for Islamic Microfinance Banks in Nigeria","authors":"A. Abdullahi, Anwar Hasan Abdullah Othman","doi":"10.26414/a2369","DOIUrl":"https://doi.org/10.26414/a2369","url":null,"abstract":"Islamic microfinance institutions play a major role in the provision of financial services to the poor and underprivileged through non-interest, equity-based products and services. \u0000To achieve these critical objectives, however, they need to be financially sustainable, which is threatened by the current economic and financial crisis caused by the Covid-19 pandemic. The objective of this paper is to review the determinants of financial sustainability of microfinance \u0000institutions with a view to drawing lessons for Islamic microfinance banks in Nigeria. The paper utilized the literature review methodology to synthesize research findings in the area. The review revealed that the major determinants of financial sustainability of microfinance institutions are \u0000the capital structure, asset size, and financial innovation. Others are good risk management and corporate governance frameworks. The paper thus recommended that Islamic microfinance institutions in Nigeria should maintain a robust capital structure that relies more on equity, a lean but diversified Board, and utilize more technology-based services. Most importantly, they should emphasize profit and loss sharing principles in their operations.","PeriodicalId":53787,"journal":{"name":"Turkish Journal of Islamic Economics-TUJISE","volume":"55 1","pages":"301-320"},"PeriodicalIF":0.3,"publicationDate":"2021-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80940607","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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