Islamic Banking And Finance In South-east Asia: Its Development And Future (2nd Edition) Its Development and Future

To truly understand the current interest in the development of Islamic banking and finance in South-East Asia and how it is different from the conventional banking system, one must first understand the religious relationship originating from the Qur an, and then trace the historical geographic and political developments of Islam over recent centuries. Only on this basis can the reader, without prejudice or cynicism, begin to appreciate Shari'ah law and Islamic jurisprudence. With this platform established in the first part of the book, readers are invited to learn about the financial products and services offered, understand the challenges in their development, and ultimately recognize the significant opportunities that Islamic banking and finance can provide both Muslims and non-Muslims. This second edition contains updates of statistics and dates with regards to the development of Islamic banking in Malaysia, Singapore, Indonesia and Brunei. In particular, the chapter on Singapore details significant developments such as the direction which major banks are taking towards Islamic banking and the increase in Islamic banking products being offered. Although written by a non-Muslim author, this highly-regarded book is being translated into Arabic by a leading Islamic university in the Middle East. Ch. 1. Islamic history. 1.1. The Quran. 1.2. The five principles of Islam. 1.3. The Mosque. 1.4. Muhammad and the origins of Islam. 1.5. The spread of Islam. 1.6. The golden age of Islam. 1.7. Decline and fall. 1.8. A revival of fortunes. 1.9. Middle-Eastern oil. 1.10. Islamic nationhood in the late twentieth century. 1.11. The Iranian revolution and after. 1.12. Islamic banking and Islamic revival -- ch. 2. Shari'ah law and Islamic jurisprudence. 2.1. From the obligatory to the forbidden. 2.2. The Quran, the Sunnah and the Hadith. 2.3. The five major schools of Islamic law. 2.4. Classical Islamic jurisprudence and the processes for ascertaining the law. 2.5. The concept of Fatwah. 2.6. From revelation to codification: scholasticism and the formulation of doctrine. 2.7. Closing of the door of Ijtihad. 2.8. Shari'ah and state law in the modern era -- ch. 3. Islamic commercial law. 3.1. Islamic vs. non-Islamic commercial transactions. 3.2. Principal requirements of the Shari'ah in relation to commercial activities. 3.3. Islam: the difference between equity and debt. 3.4. Rationale of the prohibition of interest. 3.5. Conventional banking and the prohibition of Riba in Islam. 3.6. Treatment of deposits with interest. 3.7. Profit and loss sharing. 3.8. Profit-sharing enterprises. 3.9. Islamic contract law. 3.10. Types of contract in Shari'ah. 3.11. Islamic financing in a contemporary setting. 3.12. The problem of uncertainty (gharar). 3.13. Summary -- ch. 4. Islamic financial products. 4.1. The emergence of Islamic banking. 4.2. Different paths, same goal. 4.3. What investment products are permissible under Islamic Shari'ah law. 4.4. Shari'ah investment principles. 4.5. Equity-financing and debt-financing in pre-Islamic Arab society. 4.6. Islamic equity-financing and debt-financing. 4.7. Equity securities: profit-sharing contracts. 4.8. Debt-financing contracts. 4.9. Debt securities. 4.10. Shari'ah qualifications in leasing. 4.11. Other risk-taking products. 4.12. Islamic insurance. 4.13. Takaful insurance in a contemporary context. 4.14. Takaful compared with conventional insurance. 4.15. Summary -- ch. 5. Issues and challenges of Islamic banking today. 5.1. Obstacles to the application of Islamic law to present day banking. 5.2. Derivation from revealed sources. 5.3. Methodological differences. 5.4. Pluralism of Fatwahs. 5.5. The problem of applying Islamic law in a Western legal environment. 5.6. Accounting and corporate regulatory practices. 5.7. Depositors and regulators. 5.8. Regulators' concerns. 5.9. Legal challenges. 5.10. Developing an efficient regulatory framework. 5.11. Special requirements of Islamic banking. 5.12. Assessment and management of investment risks. 5.13. Proposals for a regulatory framework for Islamic banking. 5.14. Conclusion -- ch. 6. Islam in South-east Asia. 6.1. The coming of Islam to South-east Asia. 6.2. European rivalries and colonisation. 6.3. The road to independence. 6.4. Post-independence: a new world order. 6.5. The Philippines. 6.6. Indonesia. 6.7. Malaysia. 6.8. Brunei. 6.9. Islam in South-east Asia today -- ch. 7. Colonial legacies: Islam and state law in South-east Asia. 7.1. Shari'ah vs. state law. 7.2. British Malaya. 7.3. The introduction of English common law to Malaya. 7.4. Out of India. 7.5. Muslim law in Malaysia. 7.6. Conflict between Muslim law and English common law. 7.7. Maria Hertogh: a case in point. 7.8. Post-independence -- ch. 8. Islamic banking in Malaysia. 8.1. Origins of Islamic banking in Malaysia. 8.2. Bank Negara guidelines on Islamic banking. 8.3. The Shari'ah Supervisory Council. 8.4. Making Islamic banking compatible with conventional banking. 8.5. Some observations on the Malaysian legal framework. 8.6. Islamic financial products in Malaysia: the concept of an Islamic window. 8.7. The Malaysian Government investment certificate. 8.8. Debt securities. 8.9. Islamic accepted bills. 8.10. Takaful insurance in Malaysia. 8.11. Conclusion -- ch. 9. Islamic banking in Indonesia. 9.1. Islam and government in Indonesia. 9.2. Traditional Islamic financial institutions in Indonesia. 9.3. Introduction of measures to permit Islamic banking in Indonesia. 9.4. Contemporary Indonesian Islamic financial institutions. 9.5. The introduction of standard accounting procedures. 9.6. Forms of lending and borrowing in Indonesia. 9.7. Conclusion -- ch. 10. Labuan: a niche in the Islamic money market. 10.1. Role of Labuan financial services authority. 10.2. Labuan offshore companies. 10.3. Currency and exchange control. 10.4. Tax incentives. 10.5. Labuan International Financial Exchange. 10.6. Moving forward with Islamic banking. 10.7. Conclusion -- ch. 11. Islamic banking in Brunei. 11.1. Introduction. 11.2. Brunei International Financial Corporation (BIFC). 11.3. The exclusion of money laundering a first priority. 11.4. Parallel jurisdictions. 11.5. Islamic banking in Brunei. 11.6. Takaful in Brunei. 11.7. Latest developments. 11.8. Conclusion -- ch. 12. Banking in Singapore. 12.1. Introduction. 12.2. Legal framework - legislation enacted by the Parliament of Singapore. 12.3. English common law and statutes. 12.4. Singapore - an alternative to Switzerland. 12.5. Singapore - financial system stability assessment. 12.6. Singapore's role as a financial centre. 12.7. Islamic banking in Singapore. 12.8. Conclusion -- ch. 13. Conclusion. 13.1. Introduction. 13.2. Conversion project plan. 13.3. Moral hazard and the risk of fraud. 13.4. The problem of delays in payment and insolvency. 13.5. Problems with future contracts. 13.6. Moving forward. 13.7. Conclusion "This second edition contains updates of statistics and dates with regards to the development of Islamic banking in Malaysia, Singapore, Indonesia and Brunei. In particular, the chapter on Singapore details significant developments such as the direction which major banks are taking towards Islamic banking and the increase in Islamic banking products being offered"--Jacket To understand the interest in the development of Islamic banking in South-East Asia, one must first understand the relationship originating from the Qur'an. Establishing this aspect, this book then talks about the financial products and services offered, and looks at the opportunities that this field can provide for both Muslims and non-Muslims.