Academic Presentation

Islamic banking has thus far mimicked conventional banking with the result that the same problems and outcomes have surfaced, even though it is operating within an interest free framework. This apparent "convergence" has led to disaffection both among consumers of Islamic banking services and policy makers. This paper proposes a risk sharing model for Islamic banks that can potentially pull Islamic banking away from this path dependency. Under the proposal an Islamic bank's assets would be securitized by the issuance of sukuk type instruments that have the same underlying contract and average "duration" as customer financing. Small assets may have to be pooled into tranches of similar maturity before being securitized. Medium and larger assets would have papers issued directly against them. Thus, instead of depositors, an Islamic bank would have thousands of sukuk holders, all of whom share the profits and losses arising from their respective tagged asset. Other than Wadiah based safe custody accounts and current accounts against which the bank holds cash, all other depositors would be "sold" sukuk for the amount, duration and risk level that they prefer. The model has several advantages such as, minimizing systemic risk through risk dissipation and reducing the liquidity mismatch inherent to banking. The securitized papers provide new liquidity instruments and can enhance liquidity within the Islamic finance sector. Where the macro economy is concerned, the proposal enhances system stability by reducing risk concentration within the banking system, substantially widens financial inclusion by way of small denomination sukuk and minimizes the contingent liabilities of governments by avoiding the use of deposit insurance.

Malaysia has witnessed strong sustained growth over the last three decades, growing at an average annual rate of 5.8%. This sustained growth performance has been accompanied by significant structural shifts in the economy, reflecting the transformation of the Malaysian economy amid the changing global and domestic environment.

Malaysia has a long history of internationally valued exports, being known from the early centuries A.D. as a source of gold, tin and exotics such as birds’ feathers, edible birds’ nests, aromatic woods, tree resins etc. The commercial importance of the area was enhanced by its strategic position athwart the seaborne trade routes from the Indian Ocean to East Asia.

Islamic banking is called shariah compliant banking as all transactions conducted in the banking transaction starting from product offering stage until the dispute resolution stage shall comply with the principles of Islamic law. As such the objective of this paper is to find out the application of parol evidence rule to Islamic banking in Malaysia and to find out whether the application of parol eveidence is compliant with the principles of Islamic law or not.

The term "Family Takaful" means "guarantee the family" which is more apt than the term "Life insurance", simply because no one can guarantee his own life, what more other people's life. What an individual participates in when he takes up a family takaful is to ensure that when he is indisposed, his immediate family will receive the benefits of the takaful that he has participated in. The benefits will be in three different forms, the accumulated contribution that he has made over the years, the profit that the accumulated contributions have earned and the takaful coverage that he has pledged to participate in.

The slides "Building "true value" in a changing world: are we expecting the unexpected?" presented by Dr. Adam Ng Boon Ka at Enhancing Sustainability of Global Businesses: Role of The Islamic Capital Market, at Kuala Lumpur, Malaysia.

Risk is a major component of our environment; human beings are surrounded by innumerable risks from birth to death; humans learned to improve after experiencing misfortunes; quest for security evolved since the dawn of man’s existence. In Islamic jurisprudence, the legal maxim “al-ghorm bil ghonm“ or “no reward without risk“ holds true.

The slides outline: 1) the importance of social and environmental sustainability in Malaysia; 2) strengthening the roles and impact of Islamic finance through "value-based intermediation".

The slides highlight 1) the importance of risk-taking; 2) variables - risk-taking, bank-specific, macroeconomic, and regulation of the study.

The slides highlight: 1) an overview of the Islamic capital market (ICM); 2) how does the ICM connect people; 3) advantages of ICM regulatory development.

Following the global financial crisis, many countries introduced or enhanced deposit protection schemes to increase customer confidence in their banking systems. In the Eurozone, for example, bank deposits of up to 100,000 are guaranteed. In China, as part of its financial reforms in 2015, deposits of up to 500,000 yuan are protected by the Peoples Bank. Only a minority of Muslim majority countries have formal deposit protection schemes, Malaysia being the pioneer, with the scheme provided by Perbadanan Insurans Deposit Malaysia (PIDM) covering deposits of up to RM250,000; less generous cover than the Chinese scheme.

The slides highlight: 1) the objective of the paper - to draw the attention to the four remarkable financial institutions which are meant to eradicate poverty, reduces inequalities and narrowing down the gap between the rich and the poor in an ethical and a just way; 2) current scenario/global poverty; 3) zakah financial institutions and products; 4) sadaqah financial institutions; 5) financial products under waqf.

Since the last decade, Islamic Finance (IF) has seen unparalleled growth in terms of industry size and value. According to E&Y World Islamic Banking Competitive Report 2014/15, the Global Islamic Banking assets witnessed a compounded annual growth rate (CAGR) of around 17% from 2009 - 2013.

The slides outline: 1) strengthening the impact of Islamic finance through "value-based intermediation"; 2) promoting risk sharing through investment account and platform; 3) harnessing the power of technology to enhance socially sustainable financing (MSMEs).

The slides highlight: 1) issue and challenges of affordable houses; 2) Islamic teaching help in providing affordable housing; 3) creation of waqf to meet demand for affordable houses; 4) successful cases in transforming idle waqf properties into productive waqf properties.

This study aims to dispel the myth of the value anomaly by employing the logic of the well-known Austrian British philosopher Sir Karl Raimund Popper, who espoused that positive outcomes of empirical observation cannot confirm an anomaly, such as value premium (Popper, 1953).

The slides highlight the issue facing in Islamic finance industry, limited liability in Islamic law, and discussion and analysis of the study.

The slides highlight: 1) the overview of sukuk in Malaysia; 2) the research objectives and questions, research gaps, research methodology, and findings on wealth effects.

Sustainability trends present risks and opportunities for companies and various stakeholders. Profits can be derived from doing good: Islamic sustainability equity in vesting offers competitive risk-return profiles at the levels of individual asset and portfolio of global assets particularly during economic expansion, equity bullish and subprime crisis periods. Islamic finance industry should proactively drive main stream sustainability investing.

Islam has encouraged the early Muslims to spend out of whatever they have for charity. When the verse 92 of Surah Ali Imran was revealed, there was not a single Muslim who did not part with whatever they have so as to belong to the category of "birr" or good. The fact that all wealth belongs to Allah means that whatever we give away in His cause is nothing compared to what He has given us. The most important implication is that waqf allows accumulation of capital infinitely as long as more and more capital are being made waqf.