Profit and loss sharing

Profit and Loss Sharing (also called PLS or "participatory" banking[1] is a method of finance used by Islamic financial or Shariah-complaint institutions to comply with the religious prohibition on interest on loans that many Muslims subscribe to. Many sources state there are two varieties of profit and loss sharing used by Islamic banks -- Mudarabah (مضاربة) ("trustee finance contract or passive partnership)[2] and Musharakah (مشاركة or مشركة)[3] (equity participation contract).[2] Other sources include sukuk (also called "Islamic bonds")[2] and direct equity investment (such as purchase of common shares of stock) as types of PLS.[2]

The profits and losses shared in PLS are those of a business enterprise or person which/who has obtained capital from the Islamic bank/financial institution (the terms "debt", "borrow", "loan" and "lender" are not used). As financing is repaid, the provider of capital collects some agreed upon percentage of the profits (or deducts if there are losses) along with the principal of the financing.[Note 1] Unlike a conventional bank, there is no fixed rate of interest collected along with the principal of the loan.[4] Also unlike conventional banking, the PLS bank acts as a capital partner (in the mudarabah form of PLS) serving as an intermediary between the depositor on one side and the entrepreneur/borrower on the other.[5] The intention is to promote "the concept of participation in a transaction backed by real assets, utilizing the funds at risk on a profit-and-loss-sharing basis".[3]

Profit-and-loss-sharing is one of "two basic categories" of Islamic financing,[3] the other being "debt-based contracts" (or "debt-like instruments")[6] such as murabaha, istisna'a, salam and leasing, which involve the "purchase and hire of goods or assets and services on a fixed-return basis".[3] While some (such as Mohammad Najatuallah Siddiqui) hoped PLS would be the primary mode of Islamic finance, use of fixed return financing now far exceeds that of PLS in the Islamic financing industry whose popularity is in decline.[7][8]

Background

One of the pioneers of Islamic banking, Mohammad Najatuallah Siddiqui, suggested a two-tier model as the basis of a riba-free banking, with mudarabah being the primary mode,[5] supplemented by a number of fixed-return models—mark-up (murabaha), leasing (ijara), cash advances for the purchase of agricultural produce (salam) and cash advances for the manufacture of assets (istisna'), etc. In practice, the fixed-return models -- in particular murabaha model—have become the bank's favourites,[8] as long-term financing with profit-and-loss-sharing mechanisms has turned out to be more risky and costly than the long term or medium-term lending of the conventional banks.[9]

Mudarabah

Structure of simple mudaraba contract[10]

Mudarabah or "Sharing the profit and loss with venture capital",[11] is a partnership or trust financing contract (similar to western equivalent of General and Limited Partnership) where one partner, (rabb-ul-mal or "silent partner"/financier)[12] gives money to another (mudarib or "working partner") for investing in a commercial enterprise. The rabb-ul-mal party provides 100 percent of the capital and the mudarib party provides its specialized knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. If there is a loss, rabb-ul-mal will lose his capital, and the mudarib party will lose the time and effort invested in the project. The profit is usually shared 50%-50% or 60%-40% for rabb ul mal-mudarib.

Further, Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank so that both profit and risk are shared. Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing the lender to monopolize the economy.

Muslims believe that the Islamic prophet Muhammad's wife Khadija used a Mudaraba contract with Muhammad in Muhammad's trading expeditions in northern Arabia -- Khadija providing the capital and Muhammad providing the labour/entrepreneurship.[13]

Mudaraba contracts are used in inter-bank lending. The borrowing and lending banks negotiate the PLS ratio and contracts may be as short as overnight and as long as one year.[14]

Mudarabah contracts may be restricted or unrestricted.

They may also be first tier or two tier.

A variation of two-tier mudarabah that has caused some complaint is one that replaces profit and loss sharing between depositor and bank with profit sharing—the losses being all the problem of the depositors. Instead of both the bank and its depositors being the owners of the capital (rabb al-mal), and the entrepreneur the mudarib, the bank and the entrepreneur are now both mudarib, and if there are any losses after meeting the overhead and operational expenses, they are passed on to depositors. One critic (Ibrahim Warde) has dubbed this `Islamic moral hazard` in which the banks are able `to privatise the profits and socialize the losses`.[18][19]

Another critic (M.A. Khan), has questioned the mudarabah's underlying rationale of fairness to the mudarib. Rather than fixed interest lending being unfair to the entrepreneur/borrower, Khan asks if it isn't unfair to the rabb al-mal (provider of finance) to "get a return only if the results of investment are profitable", since by providing funds they have done their part to make the investment possible, while the actions of entrepreneur/borrower—their inspiration, competence, diligence, probity, etc. -- have much more power over whether and by how much the investment is profitable or a failure.[20]

Musharakah

Structure of simple musharaka contract[21]

Musharakah is a joint enterprise in which all the partners share the profit or loss of the joint venture.[22] The two (or more) parties that contribute capital to a business divide the net profit and loss on a pro rata basis.

Musharakah is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assesses an imputed rent and will share it as agreed in advance.[23] All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of loans).[24]

Musharaka is an approach used in business transactions. Islamic banks lend their money to companies by issuing floating rate interest loans. The floating rate of interest is pegged to the company's individual rate of return. Thus, the bank's profit on the loan is equal to a certain percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-sharing arrangement is concluded.[25]

Diminishing partnership

Musharaka can be either a "consecutive partnership" or "declining balance partnership".

If default occurs, both the bank and the borrower receive a proportion of the proceeds from the sale of the property based on each party's current equity. Banks using this partnership (as of 2012) including the American Finance House,[29][30] and Dubai Islamic Bank.[30]

Diminishing Partnership may resemble a residential mortgage and is particularly popular way of structuring an Islamic mortgage for financing homes/real estate. The Islamic financier buys the house on behalf of the other "partner", the ultimate buyer who then pays the financier monthly installments combining the amounts for

  1. rent and
  2. buyout payment

until payment is complete.[31] In theory, the `rent` charged should be based on comparable homes in the area, but as one critic complained, some

"ostensibly Islamic Banks do not even make a pretense of attempting to disguise the role of market interest rates in a `diminishing musharaka`, and how the `rental` rate is directly derived from conventional interest rates and not from any imputed `fair market rent`,"

citing the Islamic Bank of Britain's explanation that its 'rental rates' are benchmarked to commercial interest rate "such as Libor (London Interbank Offered [interest] Rate)plus a further profit margin", not derived prevailing rental levels of the area of the home.[32] The Meezan Bank of Pakistan is careful to use the term "profit rate" but it is based on KIBOR (Karachi Interbank Offered [interest] Rate).[33]

Differences

According to Mufti Taqi Usmani, a mudarabah arrangement differs from the musharakah in several ways:

Promises and challenges

Profit and loss sharing has been called "the main justification" for,[6] or even "the very purpose" of the Islamic finance and banking movement"[37] and the "basic and foremost characteristic of Islamic financing".[38]

One proponent, Taqi Usmani, envisioned it transforming economies by

Usmani notes that some non-Muslim economists[Note 2] have supported development of equity markets in "areas of finance currently served by debt"[41] (though they do not support banning interest on loans).

Lack of use

While it was originally envisioned (at least in mudarabah form), as "the basis of a riba-free banking",[5] with fixed-return financial models only filling in as supplements, it is those fixed-return products whose assets-under-management now far exceed those in profit-loss-sharing modes.[8]

One study from 2000-2006 (by Khan M. Mansoor and M. Ishaq Bhatti) found PLS financing in the "leading Islamic banks" had declined to only 6.34% of total financing, down from 17.34% in 1994-6. "Debt-based contracts" or "debt-like instruments" (murabaha, ijara, salam and istisna) were far more popular in the sample.[7][6] Another source (Suliman Hamdan Albalawi) found that PLS techniques were no longer "a core principle of Islamic banking" in Saudi Arabia and Egypt,[42] and in Malaysia, another study found the share of musharaka financing declined from 1.4% in 2000 to 0.2% in 2006.[43][44]

This "mass-scale adoption" of fixed-return modes of finance by Islamic financial institutions has been criticized by shariah scholars and pioneers of Islamic finance like Mohammad Najatuallah Siddiqui, Mohammad Umer Chapra, Muhammad Taqi Usmani and Khurshid Ahmad who have "argued vehemently that moving away from musharaka and mudaraba would simply defeat the very purpose of the Islamic finance movement".[37]

(At least one scholar—M.S. Khattab—has questioned the basis in Islamic law for the two-tier mudarabah system, saying there are no instances where the mudharib passed funds onto another mudharib.[Note 3]

Explanations for lack

Critics have in turn criticized PLS advocates for remaining "oblivious to the fact" that the reason PLS has not been widely adopted "lies in its inefficiency" (Muhammad Akram Khan),[37] and their "consequence-insensitive" way of thinking, assuming that "ample supply" of PLS "instruments will create their own demand" (Nawab Haider Naqvi), consumer disinterest notwithstanding.[46]

Moral Hazard

On the liability side, Feisal Khan argues there is a "long established consensus" that debt finance is superior to equity investment (PLS being equity investment) because of the information asymmetry between the financier/investor and borrower/entrepreneur -- the financier/investor needing to accurately determine the credit-worthiness of the borrower/entrepreneur seeking credit/investment, (the borrower/entrepreneur having no such burden). Determining credit-worthiness is both time consuming and expensive, and debt contracts with substantial collateral minimize its risk of not having information or enough of it.[47] In the words of Al-Azhar rector Muhammad Sayyid Tantawy, "Silent partnerships [mudarabah] follow the conditions stipulated by the partners. We now live in a time of great dishonesty, and if we do not specify a fixed profit for the investor, his partner will devour his wealth." [48]

The bank's client has a strong incentive to report less profit to the bank than it has actually earned, as it will lose a fraction of that to the bank. As the client knows more about its business, its accounting, its flow of income, etc. than the bank, the business has an informational advantage over the bank determining levels of profit.[6][49] (For example, one way a bank can under report its earnings is by depreciating assets at a higher level than actually wear and tear.)[50] Banks can attempt to compensate with monitoring, spot-checks, reviewing important decisions of the partner business, but this requires "additional staff and technical resources" that competing conventional banks are not burdened with.[8]

Higher levels of corruption and a larger unofficial/underground economy where revenues are not reported, indicate poorer and harder-to-find credit information for financiers/investors. More than a few indicators indicate this is a problem in Muslim majority countries (such as the presence of most Muslim-majority countries in the lower half of the Transparency International Corruption Perceptions Index. The "widespread tax evasion in both the formal and informal sectors" of Middle East and North Africa according to A.R. Jalali-Naini.)[51][47] But even in the more developed United States, the market for venture capital (where the financier take a direct equity stake in ventures they are financing, like PLS) varies from around $30 billion (2011-12) to $60 billion (2004) compared to "several trillion dollar" market for corporate financing.[52]

Taqi Usmani states that the problems of PLS would be eliminating by banning interest and requiring all banks to be run on a "pure Islamic pattern with careful support from the Central Bank and government."[53] The danger of dishonesty by borrowers/clients would be solved by

  1. requiring every company/corporation to use a credit rating;
  2. implementing a "well designed" system of auditing.[53]
Other explanations

Other explanations have been offered (and rebutted) as to why use of PLS instruments has declined to almost negligible proportions:

When it comes to the manner in which Islamic securities are offered, the process and rules for such offerings, even in those jurisdictions with special licensing regimes, are, in effect, the same. (For example, the rules governing the listings of Islamic bonds issued by the Securities and Commodities Authority of the United Arab Emirates are almost identical to the rules governing the listing of conventional bonds save for the use of [sic] word 'profit' instead of 'interest'.[58]

Industry

Sudan

Between 1998 and 2002 musharkaka made up 29.8% of financing in Sudan and mudaraba 4.6%, thanks in at least part to pressure from the Islamic government. Critics complain that the banking industry in that country was not following the spirit of Islamic banking spirit as investment was directed in the banks' "major shareholder and the members of the board(s) of directors".[66][67]

Kuwait

In Kuwait the Kuwait Finance House is the second largest bank and was exempt from some banking regulations such that it could invest in property and rims outright and participate directly in musharaka financing of corporations and "generally act more like a holding company than a bank". Nonetheless as of 2010 78.4% of its assets were in murabahah, ijara and other non-PLS sources.[68][67]

Pakistan

The Islamic Republic of Pakistan officially promotes Islamic banking — for example by (starting in 2002) prohibiting the startup of conventional non-Islamic banks. Among its Islamic banking programmes is establishing "musharaka pools" for Islamic banks using its export refinance scheme. Instead of lending money to banks at a rate of 6.5% for them to lend to exporting firms at 8% (as it does for conventional banks), it uses a musharaka pool where instead of being charged 8%, firms seeking export credit are "charged the financing banks average profit rate based on the rate earned on financing offered to ten `blue-chip` bank corporate clients".[69] However, critic Feisal Khan complains, despite "rigamarole" of detailed instructions for setting up the pool and profit rate, in the end the rate is capped by the State Bank at "the rate declared by the State under its Export finance scheme".[69]

Another use of musharaka in Pakistan is by one of the largest Islamic banks (Meezan Bank) which has attempted to remedy a major problem of Islamic banking — namely providing lines of credit for the working needs of client firms. This it does with a (putative) musharaka "Islamic running finance facility". Since the workhorses of Islamic finance are product-based vehicles such as murabaha, which expire once the product has been financed, they do not provide steady funding -- a line of credit -- for firms to draw on. The Islamic running finance facility does. The bank contributes its investment to the firm as a partner by covering the "firms net (negative) position at the end of the day". "Profit is accrued to the bank daily on its net contribution using the Karachi Interbank Offered Rate plus a bank-set margin as the pricing basis"..[70] However according to critic Feisal Khan, this is an Islamic partnership in name only and no different than a "conventional line of credit on a daily product basis".[70]

Islamic Development Bank

Between 1976 and 2004 only about 9% of the financial transactions of the Islamic Development Bank (IDB) were in PLS,[71] increasing to 11.3% in 2006-7.[72] This is despite the fact that the IDB is a not a multilateral development agency, not a for-profit, commercial bank.[67] (While the surplus funds placed in other banks are supposed to be restricted to Shariah-compliant purposes, proof of this compliance was left to the affirmation of the borrowers of the funds and not to any auditing.)[73]

United States

In the United States the Islamic banking industry is a much smaller share of the banking industry than in Muslim majority countries, but is involved in `diminishing musharaka` to finance home purchases (along with Murabaha and Ijara). As in other countries the rent portion of the musharaka is based on the prevailing mortgage interest rate rather than the prevailing rental rate. One journalist (Patrick O. Healy 2005) found costs for this financing are "much higher" than conventional ones because of higher closing costs[74] Referring to the higher costs of Islamic finance, one banker (David Loundy) quotes an unnamed mortgage broker as stating,"The price for getting into heaven is about 50 basis points". [75][76]

See also

References

Notes

  1. ↑ The money originally invested or loaned, on which basis interest and returns are calculated. The term loan is not used in profit and loss sharing
  2. ↑ James Robertson and John Tomlinson.[40] In his short book, Transforming Economic Life (Schumacher Briefings), James Robertson suggests several highly unorthodox ideas such as introducing multiple competing currencies (multinational, national, local, and community currencies) for consumers to use; banning banks from fractional-reserve banking and replacing the money credit "creates" with the issuing of "new money" "directly" by governments as a "component of Citizen's income"; and "as a goal for the long term ... limit[ing] the role of interest [in finance] more drastically ... by converting debt to equity"
  3. ↑ Khattab writes, “fuqaha are in agreement that a mudarib is not entitled to forward mudarabah money to a third party for business”.[45]

Citations

  1. ↑ Çetin, Hüseyin (August 2014). "Econometric Modeling of Turkish Participatory Banks Deposits" (PDF). International Journal of Trade, Economics and Finance. 5 (4): 322. doi:10.7763/IJTEF.2014.V5.391. Retrieved 16 August 2015.
  2. 1 2 3 4 Khan, Islamic Banking in Pakistan, 2015: p.91
  3. 1 2 3 4 "Islamic Banking. Profit-and-Loss Sharing". Institute of Islamic Banking and Insurance. Retrieved 15 August 2015.
  4. ↑ "PROFIT AND LOSS SHARING Definition". VentureLine. Retrieved 16 August 2015.
  5. 1 2 3 Curtis, Mallet-Prevost, Colt & Mosle LLP (3 July 2012). "Islamic Banking: A Brief Introduction". Oman Law Blog. Curtis, Mallet-Prevost, Colt & Mosle LLP. Retrieved 10 August 2015.
  6. 1 2 3 4 5 6 7 8 9 10 11 12 Khan, What Is Wrong with Islamic Economics?, 2013: p.322-3
  7. 1 2 Khan M. Mansoor and M. Ishaq Bhatti. 2008. Developments in Islamic banking: The case of Pakistan. Houndsmills, Basingstoke: Palgrave Macmillan, p.49
  8. 1 2 3 4 5 6 Khan, What Is Wrong with Islamic Economics?, 2013: p.275
  9. 1 2 Yousef, Tarik M. (2004). "The Murabaha Syndrome in Islamic Finance: Laws, Institutions, and Politics". In Henry, Clement M.; Wilson, Rodney. THE POLITICS OF ISLAMIC FINANCE (PDF). Edinburgh: Edinburgh University Press,. Retrieved 5 August 2015.
  10. ↑ Jamaldeen, Islamic Finance For Dummies, 2012:149
  11. ↑ Jamaldeen, Islamic Finance For Dummies, 2012:147
  12. ↑ "Silent Partner". investopedia.com. Retrieved 22 March 2017.
  13. ↑ Eisenberg, David (2012). Islamic Finance: Law and Practice. Oxford University Press. p. 6.34. Retrieved 28 March 2017.
  14. ↑ Jamaldeen, Faleel. Islamic Finance for Dummies (ebook). p. 387.
  15. 1 2 3 Usmani, Introduction to Islamic Finance, 1998: p.32
  16. 1 2 3 El Tiby Ahmed, Amr Mohamed (2011). Islamic Banking: How to Manage Risk and Improve Profitability. Wiley. p. 54. Retrieved 23 July 2016.
  17. ↑ Jamaldeen, Islamic Finance For Dummies, 2012:149-50
  18. ↑ Warde, Islamic finance in the global economy, 2000: p.164
  19. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.321
  20. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.232-3
  21. ↑ Jamaldeen, Islamic Finance For Dummies, 2012:152
  22. 1 2 3 Usmani, Introduction to Islamic Finance, 1998: pp.17-36
  23. ↑ Nomani, Farhad; Rahnema, Ali (1994). Islamic Economic Systems. New Jersey: Zed books limited. pp. 99–101. ISBN 1-85649-058-0.
  24. ↑ "THE DECLINING BALANCE CO-OWNERSHIP PROGRAM AN OVERVIEW" (PDF). Guidance Residential. 21 October 2002. Retrieved 6 September 2016.
  25. ↑ "Islamic banks commercial transactions". Financial Islam - Islamic Finance. Retrieved 12 July 2016.
  26. ↑ Jamaldeen, Islamic Finance For Dummies, 2012:152-3
  27. ↑ "Is Musharakah Mutanaqisah a practical alternative to conventional home financing?". Islamic Finance News. Retrieved 1 August 2016.
  28. ↑ Moriguchi, Takao; Khattak, Mudeer Ahmed (2016). "Contemporary Practices of Musharakah in Financial Transactions". IJMAR International Journal of Management and Applied Research. 3 (2). Retrieved 21 March 2017.
  29. ↑ "LARIBA, AMERICAN FINANCE HOUSE, FAQ - Frequently Asked Questions". www.lariba.com. Retrieved 2017-03-21.
  30. 1 2 Jamaldeen, Islamic Finance For Dummies, 2012:153
  31. ↑ El-Gamal, M.A. (2000). Basic Guide to Contemporary Islamic Banking and Finance (PDF). Plainfield, IL: Islamic Society of North America. p. 16.
  32. ↑ Khan, Islamic Banking in Pakistan, 2015: p.103
  33. ↑ Khan, Islamic Banking in Pakistan, 2015: p.104
  34. 1 2 3 4 5 6 7 8 9 10 "Mudarabah". Concepts in Islamic Economics and Finance. Retrieved 17 August 2015.
  35. ↑ Usmani, Introduction to Islamic Finance, 1998: p.31
  36. ↑ Musharakah & Mudarabah By Mufti Taqi Usmani | Limited Liability| central-mosque.com
  37. 1 2 3 Khan, What Is Wrong with Islamic Economics?, 2013: p.325
  38. ↑ Usmani, Historic Judgment on Interest, 1999: para 204
  39. ↑ Usmani, Historic Judgment on Interest, 1999: para 205
  40. ↑ Usmani, Historic Judgment on Interest, 1999: para 150, 168, 204, 205
  41. ↑ Usmani, Historic Judgment on Interest, 1999: para 204, 205
  42. ↑ Albalawi, Suliman Hamdan (September 2006). "Banking System in Islamic Countries: Saudi Arabia and Egypt. A Dissertation Submitted to the School of Law and the Committee on Graduate Studies of Stanford University" (PDF). law.stanford.edu. Retrieved 10 April 2015.
  43. ↑ Z. Hasan, "Fifty years of Malaysian economic development: Policies and achievements", Review of Islamic Economics, 11 (2) (2007))
  44. ↑ Asutay, Mehmet. 2007. Conceptualization of the second best solution in overcoming the social failure of Islamic banking and finance: Examining the overpowering of the homoislamicus by homoeconomicus. IIUM Journal of Economics and Management 15 (2) 173
  45. ↑ quoted in http://ijtihadnet.com/article-islamicity-banking-modes-islamic-banking/Khattab, Muhammad Sharfuddin (1998), Mudharaba System in Islamic Fiqh, Translated in Urdu by Muhammad Tahir Mansuri, Islamabad: International Institute of Islamic Economics, International Islamic University p. 58
  46. ↑ Naqvi, S.N.H. 2000. Islamic banking: An evaluation. IIUM Journal of Economics and Management 8 (1) 41-70
  47. 1 2 {{#FKIBP2015 |Khan, Islamic Banking in Pakistan, 2015]], p.98-9
  48. ↑ El-Gamal, Islamic Finance, 2006: p.143
  49. 1 2 3 4 5 6 7 Dar, Humayon A. and J.R. Presley (2000-01. Lack of profit loss sharing in Islamic banking: Management and control imbalance., Economics research paper 024. Leicester: Loughborough University. 5-6)
  50. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.278, 18.3
  51. ↑ Jalali-Naini, A.R. (2000). "The structure and volatility of fiscal revenue in MENA countries", paper presented at the Mediterranean Development Forum,. Cairo Egypt. p. 11.
  52. 1 2 Khan, Islamic Banking in Pakistan, 2015, p.100
  53. 1 2 Usmani, Historic Judgment on Interest, 1999: para 216
  54. ↑ Ahmad, Ausaf. (1993). Contemporary Practices of Islamic Financing Techniques (PDF). Research Paper #20. Islamic Research and Training Institute, Islamic Development Bank. p. 59. Retrieved 11 June 2017.
  55. 1 2 3 Khan, Islamic Banking in Pakistan, 2015: p101
  56. ↑ Baele, L.; Farooq, M.; Ongena, S. (2014). "Of Religion and Redemption: Evidence from Default on Islamic loans". JOurnal of Banking and Finance: 7.
  57. ↑ El-Gamal, Islamic Finance, 2006: p.20-1
  58. ↑ Henderson, A. (2009). "The regulation of Shari'a-compliant financial services and products: approaches and challenges"". In Khorshid, A. Euromoney Encyclopedia of Islamic Finance (2nd ed.). London. p. 378.
  59. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.326-7
  60. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.276, 277 18.1, 18.2
  61. 1 2 Balala, Maha-Hanaan (2011). Islamic finance and law. London and New York: I.B. Tauris.
  62. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.278-9
  63. 1 2 3 4 Iqbal, Munawar and Philip Molyneux. 2005. Thirty years of Islamic banking: History, performance and prospects. New York: Palgrave Macmillan. p.136
  64. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.324
  65. ↑ Khan, What Is Wrong with Islamic Economics?, 2013: p.282, 18.6.6
  66. ↑ Stiansen, E. (2004), C.M. Henry; and R. Wilson, eds., "Interest politics. Islamic finance in the Sunday 1977-2001", Edinburgh: Edinburgh University Press, pp. 163–4
  67. 1 2 3 Khan, Islamic Banking in Pakistan, 2015: p.94
  68. ↑ Khan, F. "How "Islamic" is Islamic Banking?". Journal of Economic Behavior and Organization. 76 (3): 811.
  69. 1 2 Khan, Islamic Banking in Pakistan, 2015: p.105
  70. 1 2 Khan, Islamic Banking in Pakistan, 2015: p.105-6
  71. ↑ 29th IDB Annual Reort 1424H (2003-2004), Jeddah: Islamic Development Bank 2004,
  72. ↑ Islamic Development Bank 2007, 32nd IDB Annual Report 1427H
  73. ↑ Khan, Islamic Banking in Pakistan, 2015: p.95
  74. ↑ Healy, Patrick O. (7 August 2005). "For Muslims, loans for the conscience". New York Times. Retrieved 11 June 2017.
  75. ↑ Morais, R.C. (23 July 2007). "Don't call it interest". Forbes: 132. Retrieved 11 June 2017.
  76. ↑ Khan, Islamic Banking in Pakistan, 2015: p.102-3

Books and journal articles

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.