nep-isf New Economics Papers
on Islamic Finance
Issue of 2022‒03‒14
eight papers chosen by

  2. Qowaidh Al-amr alaa saii’ nahii an diddhi dalam Bertransaksi dengan Bank Konvensional dan Efeknya terhadap Pertumbuhan Perbankan Syariah By ; Kurniawan, Rachmad Risqy
  3. Penerapan Akad Mudharabah Mutlaqah Pada Tabungan Mabrur Untuk Biaya Perjalanan Ibadah Haji By Safitri, Ida; Kurniawan, Rachmad Risqy
  5. Investor-Driven Corporate Finance: Evidence from Insurance Markets By Christian Kubitza
  6. Bahaya Riba Qardh dan Alternatif Akad Qardh Sebagai Solusi dalam Lembaga Keuangan Syariah By , Khadijah; Kurniawan, Rachmad Risqy
  7. Pengelolaan Dana Non Halal Dalam Bank Syariah By Zaidan, Muhammad
  8. Sustainability Bond for the Pacific Feasibility Study By Griffon Emose

  1. By: Faqih, Muhammad; Kurniawan, Rachmad Risqy
    Abstract: The development of Islamic Banking encourages the development of the products in it. One of the Islamic banking products that are in great demand by the public is a housing finance product known as the Sharia Home Ownership Partnership (KPRS
    Date: 2021–12–20
  2. By: ; Kurniawan, Rachmad Risqy
    Abstract: In this article, we will discuss the commands and prohibitions in transacting with conventional banks and their impact on the growth of Islamic banking. In the Qur'an, it has been explained that Muslims are prohibited from doing usury and it is God's rule to leave his servants in the transaction of usury and don't even approach him. Therefore, Islamic banks are banks that have securities that carry out business activities based on sharia principles, or Islamic legal principles regulated in the fatwa of the Indonesian ulema Council such as the principles of justice and balance, benefit, universalism, and do not contain gharar, maysir, usury, tyranny and unlawful object. While conventional banks are banks that carry out conventional business activities which in their activities provide services in payment traffic based on established procedures and provisions.
    Date: 2021–12–07
  3. By: Safitri, Ida; Kurniawan, Rachmad Risqy
    Abstract: Hajj is one of the pillars of Islam that must be believed and carried out by every Muslim who meets the mandatory requirements which will complete the fifth pillar of Islam. Indonesia is the largest contributor to the Hajj pilgrims in the world, so the National Sharia Council provides an opportunity for Islamic Financial Institutions to respond to the needs of the community in various products. Bank Syariah Mandiri is one of the Islamic financial institutions that provides services for the pilgrimage by using a system that can relieve customers, namely mabrur savings. This savings account aims to provide convenience for prospective Hajj pilgrims by using some of their money so that they can carry out the costs of the pilgrimage.
    Date: 2021–12–07
  4. By: Hafizah, Nadia Nur; Kurniawan, Rachmad Risqy
    Abstract: This article discusses how the implementation of the mudharabah contract in Islamic banking practices and the position of the mudharabah contract in fiqh and the scheme of the mudharabah muthlaqah contract. The purpose of this study was to determine the position of the mudharabah contract in fiqh and the practice of the mudharabah contract in Islamic banking. The results of this study reveal that the mudharabah muthlaqah contract is a collaboration between the owner of the funds or investors (shahib al-mal / rabb al-mal / investors) namely customers and capital managers (mudharib) namely Islamic banks to conduct business on the basis of profit sharing. Mudharabah profits will be divided according to the agreement that has been agreed by both parties. If a loss occurs, the loss is borne by the owner of the capital or the customer in this case, provided that the loss is not due to the mudhorib's fault. In this case, if there is a dispute between the owner of the property and the person entrusted with the mandate regarding the property, then the words received are the words of the person entrusted with the mandate, except for those entrusted to them that violate reality and habits. Because the owner of the property has entrusted the property to him and has positioned it like himself.
    Date: 2021–12–06
  5. By: Christian Kubitza (University of Bonn)
    Abstract: This paper documents that the bond investments of insurance companies transmit shocks from insurance markets to the real economy. Liquidity windfalls from household insurance purchases increase insurers' demand for corporate bonds. Exploiting the fact that insurers persistently invest in a small subset of firms for identification, I show that these increases in bond demand raise bond prices and lower firms' funding costs. In response, firms issue more bonds, especially when their bond underwriters are well connected with investors. Firms use the proceeds to raise investment rather than equity payouts. The results emphasize the significant impact of investor demand on firms' financing and investment activities.
    Keywords: Corporate Finance, Corporate Bonds, Insurance, Real Effects
    JEL: G12 G22 G24 G32 G34
    Date: 2022–02
  6. By: , Khadijah; Kurniawan, Rachmad Risqy
    Abstract: This paper will discuss the dangers of riba qardh and will also lead to alternative qardh contracts as a solution in Islamic financial institutions. Most people already know that usury is forbidden in Islam. And not a few people know that usury has a harmful negative impact on the perpetrator and others. And what the author will discuss now is the danger of qardh usury. That is a borrowing and borrowing contract that is added with shrouded usury. And alternative qardh contracts as a solution to avoid the impact of the dangers of qardh usury in Islamic financial institutions.
    Date: 2022–01–02
  7. By: Zaidan, Muhammad
    Abstract: This paper was written with the aim of examining one specific fiqh rule, namely: "something that cannot be done entirely, then don't abandon it entirely.", find the relationship between these basic rules and sharia economics, and find out their application in sharia-based economic and financial activities, especially in the theme of managing non-halal funds in Islamic banks. The method used in writing is material deepening, analogy, and analysis of data and legal sources, both Nash and other related notes.
    Date: 2021–12–06
  8. By: Griffon Emose (Managing Director of Kontiki Capital Ltd (KCL))
    Abstract: Small Island Developing States (SIDS) are vulnerable to the effects of climate change, environmental damage, and other social challenges. However, their public finances unlikely cover necessary expense for sustainable development and the gap tends to increase given the aftermath of COVID-19 pandemic. This report highlights a potential for sustainability bonds in Pacific SIDS (PSIDS) to fill in the financing gap, by leveraging private sector participation to finance climate resilient investment in the PSIDS. Aside from the bonds issuance itself, the paper provides three general recommendations as follows: (1) a blended finance structure is beneficial given the underdeveloped capital market and small pool of public and private funding; (2) to achieve a desirable target in bond issuance, a private placement could be pursued by direct negotiation with targeted financial institutions, while public offering can be issued through underwritten offerings, best effort offerings, and auctions; (3) country that are willing to issue the sustainability bonds should details their bond framework, in addition to the terms sheet and conditions to binding the bond in financing sustainable projects. The paper concludes that both sovereign and corporate issuance of sustainability bonds are feasible in PSIDS, which is well supported by two case: Fiji Sovereign Green Bond and Seychelles Blue Bond.
    Keywords: : Climate Finance, Environmental and Social Risk, Financial Institutions
    JEL: F65 G20
    Date: 2021–04

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