nep-isf New Economics Papers
on Islamic Finance
Issue of 2022‒03‒21
seven papers chosen by

  1. Qowaidh Al-amr alaa saii’ nahii an diddhi dalam Bertransaksi dengan Bank Konvensional dan Efeknya terhadap Pertumbuhan Perbankan Syariah By Ula, Fiskiatul; Kurniawan, Rachmad Risqy
  2. Bahaya Riba Qardh dan Alternatif Akad Qardh Sebagai Solusi dalam Lembaga Keuangan Syariah By ; Kurniawan, Rachmad Risqy
  4. Financial determinants of informal financial development in Sub-Saharan Africa By Simplice A. Asongu; Valentine B. Soumtang; Ofeh M. Edoh
  5. Penerapan Akad Wadiah di Perbankan Syariah By , almunbaits; Kurniawan, Rachmad Risqy
  6. Climate change and fiscal sustainability: risks and opportunities By Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Mohaddes, Kamiar; Volz, Ulrich; Zenghelis, Dimitri
  7. Financial frictions in a commodity exporting small open economy: the Case of Kazakhstan By Erlan Konebayev

  1. By: Ula, Fiskiatul; Kurniawan, Rachmad Risqy
    Abstract: 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. Abstrak Dalam artikel ini akan membahas tentang perintah dan larangan dalam bertransaksi dengan bank konvensional dan dampaknya terhadap pertumbuhan perbankan syariah. Dalam Al-quran sudah dijelaskan bahwasanya umat muslim dilarang melakukan riba dan itu sudah peraturan Allah untuk meninggalkan hambanya dalam bertransaksi riba bahkan jangan sampai mendekatinya. Maka dari itulah Bank syariah merupakan bank yang memepunyai efek yang menjalankan kegiatan usaha berdasarkan prinsip syariah, atau prinsip hukum islam yang diatur dalam fatwa Majelis Ulama Indonesia seperti prinsip keadilan dan keseimbangan, kemaslahatan, universalisme, serta tidak mengandung gharar, maysir, riba, zalim dan obyek yang haram. Sedangkan bank konvensional yaitu bank yang melaksanakan kegiatan usaha secara konvensional yang mana dalam kegiatannya memberikan jasa dalam lalu lintas pembayaran berdasarkan prosedur dan ketentuan yang telah ditetapkan.
    Date: 2021–11–28
  2. By: ; Kurniawan, Rachmad Risqy
    Abstract: This article will discuss the dangers of usury qardh and alternative qardh contracts as solutions in Islamic financial institutions. Riba qardh is dangerous because it causes many things to happen that can harm many parties. And this article will explain about alternative qardh contracts in Islamic financial institutions. Of most people in this world, they definitely prefer something that is profitable and will not choose something that can harm themselves or others, in worldly affairs or in matters related to the hereafter.
    Date: 2021–12–05
  3. By: Avkira, Yesha; Kurniawan, Rachmad Risqy
    Abstract: In this article, the author tries to provide an in-depth description of the implementation of the Bay Ad-dayn contract on Islamic Bonds and State Sukuk. State Sharia Securities, abbreviated as SBSN or State Sukuk, are State securities issued based on sharia principles, as evidence of the share of participation in SBSN assets, both in rupiah and foreign currencies. In its issuance, SBSN requires the existence of an underlying asset that reflects the ownership share of the assets/benefits/services that forms the basis for the issuance of SBSN.
    Date: 2021–12–05
  4. By: Simplice A. Asongu (Yaounde, Cameroon); Valentine B. Soumtang (Yaoundé, Cameroon); Ofeh M. Edoh (Yaoundé, Cameroon)
    Abstract: This study assesses financial determinants of informal financial sector development in 48 Sub-Saharan African countries for the period 1995-2017. Quantile regressions are used as the empirical strategy which enables the study to assess the determinants throughout the conditional distribution of informal sector development dynamics. The following financial determinants affect informal financial development and financial informalization differently in terms of magnitude and sign: bank overhead costs; net internet margin; bank concentration; return on equity; bank cost to income ratio; financial stability; loans from non-resident banks; offshore bank deposits and remittances. The determinants are presented from a plethora of perspectives, inter alia: U-Shape, S-Shape and positive or negative thresholds. The study not only provides a practical way by which to assess the incidence of financial determinants on informal financial sector development, but also provides financial instruments by which informal financial development can be curbed.
    Keywords: Informal finance; financial development; Africa
    Date: 2021–08
  5. By: , almunbaits; Kurniawan, Rachmad Risqy
    Abstract: In contemporary business, the problem of depositing funds in various systems of banking institutions is usually through the savings, current and deposit systems. Deposit (Al-Wadiah) in language is something that is not entrusted to the owner, meaning that the wadiah contract must be given. The second meaning of wadiah contract is "acceptance", as someone says "I received property from him". Wadiah means handing over property to the protected person and the recipient. In carrying out wadiah, certain pillars and conditions must be met. Al-Jaziri expressed the opinion of the imam of the madzhab as follows.
    Date: 2021–12–05
  6. By: Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Mohaddes, Kamiar; Volz, Ulrich; Zenghelis, Dimitri
    Abstract: Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of how climate change will affect debt sustainability, sovereign creditworthiness and the public finances of major economies. We present a taxonomy for tracing the physical and transition impacts of climate change through to impacts on sovereign risk. We then apply the taxonomy to the UK's potential transition to net zero. Meeting internationally agreed climate targets will require an unprecedented structural transformation of the global economy over the next two or three decades. The changing landscape of risks warrants new risk management and hedging strategies to contain climate risk and minimise the impact of asset stranding and asset devaluation. Yet, conditional on action being taken early, the opportunities from managing a net zero transition would substantially outweigh the costs.
    Keywords: climate change; net zero; productivity; sovereign debt; transition risk; ES/V002740/1
    JEL: H50 H60 H62 J24 N10 Q54 Q55
    Date: 2021–12–30
  7. By: Erlan Konebayev (NAC Analytica, Nazarbayev University)
    Abstract: This paper adds the banking sector to a commodity-exporting small open economy DSGE model and estimates it using the data for Kazakhstan between 2001 and 2019. The resulting model produces one-step-ahead predictions that are a good fit for the banking sector variables. We find that the oil price and risk premium shocks are the drivers of much of the economic activity in Kazakhstan - they explain a large part of the variation in most of the macro variables considered. A comparison with the baseline model that has no banking sector shows that the influence of the risk premium shock on real variables can be overestimated when financial frictions are excluded. The above-mentioned two shocks, along with the fiscal policy shock, have also significantly contributed to historical fluctuations in real GDP growth, although with no particular trend in the direction or magnitude of their effects.
    Keywords: DSGE; Bayesian analysis; small open economy; Kazakhstan
    JEL: C11 E30 E32 E37
    Date: 2021–12

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