Is the rise in Islamic finance providing global regulators with an opportunity to bring about fundamental change in governance, and the demise of the oppressive interest-rate policy, through the adoption of the Islamic principle of shared risk and profit? CARALINE CLARKE explores. One of the fundamental differences between conventional western and Islamic banking systems is …
Private placement life insurance (PPLI) is a type of life insurance that is available exclusively for high-net-worth individuals. A trust is set up for the PPLI holder who will then purchase an insurance policy higher than the actual value with the additional amount going into the trust set up earlier. The insurance company manages the …
Is private placement life insurance Shariah compliant? Read More »
Deciding on the right insurance policy whether on a personal or a business level can be confusing and misleading in the absence of basic understanding of Takaful, its definition, business model, special offerings and purpose. In this article, OSAMA ABDEEN would like to touch on a very important aspect concerning the misconceptions of the Takaful …
Takaful: The truth about the business model and the misconceptions Read More »
Market risk is defined as the possibility of incurring loss due to movements in the exchange rate, commodity price, profit/interest rate, equity price and such. In this article, VENKATESH RAMAKRISHNA focuses on the profit rate risk for both asset and liability holders. Let us take the example of an Islamic bank, Bank ABC, issuing a …
The AAOIFI Shariah Standard on Gold developed in collaboration with the World Gold Council was a game-changer for the role of gold in Islamic finance. For the first time, the world’s leading Islamic scholars issued a collective Fatwa on the trading of gold, clarifying the transactions that are permitted and enabling the development of new …
The response to the 2008 economic crisis has relied on monetary stimulus, in the form of quantitative easing and ‘near-zero’ interest rates. Nonetheless, it did lack structural reforms. As a result, the excess liquidity injected into economies by central banks was not allocated efficiently, and global asset prices rose to levels even higher than those …
