An Introduction To Islamic Finance Version 2

Description

An Introduction to Islamic Finance Foreword Some Preliminary Points Belief in Divine Guidance The Basic Difference between Capitalist and Islamic Economy Asset-backed Financing Capital and Entrepreneur Present Practices of Islamic Banks Musharakah The Concept of Musharakah The Basic Rules of Musharakah Distribution of Profit Ratio of Profit Sharing of Loss The Nature of the Capital Management of Musharakah Termination of Musharakah Termination of Musharakah without Closing the Business Mudarabah Business of the Mudarabah Distribution of the Profit Termination of Mudarabah Combination of Musharakah and Mudarabah Musharakah & Mudarabah as Modes of Financing Project Financing Securitization of Musharakah Financing of a Single Transaction Financing of the Working Capital Sharing in the Gross Profit Only Running Musharakah Account on the Basis of Daily Products Some Objections on Musharakah Financing Risk of Loss Dishonesty Secrecy of the Business Clients’ Unwillingness to Share Profits Diminishing Musharakah House Financing on the Basis of Diminishing Musharakah Diminishing Musharakah for Carrying Business of Services Diminishing Musharakah in Trade Murabahah Introduction Some Basic Rules of Sale Bai’ Mu’ajjal (Sale on Deferred Payment Basis) Murabahah Murabahah as a Mode of Financing Basic Features of Murabahah Financing Some Issues Involved in Murabahah Different Pricing for Cash and Credit Sales The Use of Interest-Rate as Benchmark Promise to Purchase Securities against Murabahah Price Guaranteeing the Murabahah Penalty of Default The Alternative Suggestion No Roll Over in Murabahah Rebate on Earlier Payment Calculation of Cost in Murabahah Subject Matter of Murabahah Rescheduling of Payments in Murabahah Securitization of Murabahah Some Basic Mistakes in Murabahah Financing Conclusions Ijarah Basic Rules of Leasing Lease as a Mode of Financing 1. The Commencement of Lease 2. Different Relations of the Parties 3. Expenses Consequent to Ownership 4. Liability of the Parties in Case of Loss to the Asset 5. Variable Rentals in Long Term Leases 6. Penalty for Late Payment of Rent 7. Termination of Lease 8. Insurance of the Assets 9. The Residual Value of the Leased Asset 10. Sub-Lease 11. Assigning of the Lease Securitization of Ijarah Head-Lease Salam and Istisna’ Salam Conditions of Salam Salam as a Mode of Financing Some Rules of Parallel Salam Istisna’ Difference Between Istisna’ and Salam Difference Between Istisna’ and Ijarah Time of Delivery Istisna’ as a Mode of Financing Islamic Investment Funds Equity Fund Conditions for Investment in Shares Ijarah Fund Commodity Fund Murabahah Fund Bai’-Al-Dain Mixed Fund The Principle of Limited Liability Waqf Baitul-Mal Joint Stock Inheritance under Debt The Limited Liability of the Master of a Slave The Performance of the Islamic Banks —A Realistic Evaluation