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Profit And Loss Sharing
Profit and Loss Sharing (also called PLS or participatory banking) refers to Sharia-compliant forms of equity financing such as mudarabah and musharakah. These mechanisms comply with the religious prohibition on interest on loans that most Muslims subscribe to. ''Mudarabah'' (مضاربة) refers to "trustee finance" or passive partnership contract, while ''Musharakah'' (مشاركة or مشركة) refers to equity participation contract. Other sources include sukuk (also called "Islamic bonds") and direct equity investment (such as purchase of common shares of stock) as types of PLS. Khan, ''Islamic Banking in Pakistan'', 2015: p.91 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 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Banking
Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include '' Mudarabah'' (profit-sharing and loss-bearing), ''Wadiah'' (safekeeping), ''Musharaka'' (joint venture), ''Murabahah'' (cost-plus), and ''Ijara'' ( leasing). Sharia prohibits '' riba'', or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to ''riba''). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also '' haram'' ("sinful and prohibited"). These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Muhammad
Muhammad ( ar, مُحَمَّد; 570 – 8 June 632 CE) was an Arab religious, social, and political leader and the founder of Islam. According to Islamic doctrine, he was a prophet divinely inspired to preach and confirm the monotheistic teachings of Adam, Abraham, Moses, Jesus, and other prophets. He is believed to be the Seal of the Prophets within Islam. Muhammad united Arabia into a single Muslim polity, with the Quran as well as his teachings and practices forming the basis of Islamic religious belief. Muhammad was born approximately 570CE in Mecca. He was the son of Abdullah ibn Abd al-Muttalib and Amina bint Wahb. His father Abdullah was the son of Quraysh tribal leader Abd al-Muttalib ibn Hashim, and he died a few months before Muhammad's birth. His mother Amina died when he was six, leaving Muhammad an orphan. He was raised under the care of his grandfather, Abd al-Muttalib, and paternal uncle, Abu Talib. In later years, he would periodically ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Khurshid Ahmad (scholar)
Khurshīd Ahmad ( ur, ; b. 23 March 1932) , is a Pakistani economist, philosopher, politician, and an Islamic activist who helped to develop Islamic economic jurisprudence as an academic discipline and one of the co-founders (along with Khurram Murad) of The Islamic Foundation in Leicester, UK. A senior conservative figure, he has been long-standing party worker of the Islamist Jamaat-e-Islami (JeI) party, where he successfully ran for Senate in the general elections held in 2002 on a platform of Muttahida Majlis-e-Amal (MMA). He served in the Senate until 2012. He played his role as a policy adviser in Zia administration when he chaired the Planning Commission, focusing on the role of Islamising the country's national economy in the 1980s. Biography Family, education, and early life Ahmad was born into an Urdu-speaking family in Delhi, British India, on 23 March 1932. He entered in the Anglo-Arabic College in Delhi. After the partition of India in 1947, the family mo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Muhammad Taqi Usmani
Muhammad Taqi Usmani (born 5 October 1943) is a Pakistani Islamic scholar and former judge who is the current president of the Wifaq ul Madaris Al-Arabia and the vice president and Hadith professor of the Darul Uloom Karachi. An intellectual leader of the Deobandi movement, he has authored 143 books in Urdu, Arabic and English, including a translation of the Qur'an in both English and Urdu as well a 6-volume commentary on the ''Sahih Muslim'' in Arabic, '' Takmilat Fath al-Mulhim'' and ''Uloomu-l-Quran''. He has written and lectured extensively on hadith, and Islamic finance. He chairs the Shariah Board of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). He is also a permanent member of the Jeddah-based International Islamic Fiqh Academy, an organ of the OIC. In Pakistan, Usmani served as a scholar judge on the Shariat Appellate Bench of the Supreme Court from 1982 to 2002, and on the Federal Shariat Court from 1981 to 1982 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Umer Chapra
Muhammad Umer Chapra (born 1 February 1933) is a Pakistani-Saudi economist. he serves as Advisor at the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB) in Jeddah, Saudi Arabia. Prior to this position, he worked at the Saudi Arabian Monetary Agency (SAMA), Riyadh, for nearly 35 years, as Economic Advisor and then Senior Economic Advisor. Personal life Chapra was born in Bombay, British India on 1 February 1933 to Abdul Karim Chapra, and grew up in Karachi, Pakistan. He completed undergraduate studies from the University of Sindh in 1950, followed by undergraduate and postgraduate degrees in commerce at the University of Karachi in 1954 and 1956 respectively. He then moved to the United States, where he pursued a PhD in economics and sociology from the University of Minnesota in 1961, and worked as an academic for six years. In 1965, at a time when there was high demand for skilled Pakistani migrants, he moved to Saudi Arabia after being offere ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fractional-reserve Banking
Fractional-reserve banking is the system of banking operating in almost all countries worldwide, under which banks that take deposits from the public are required to hold a proportion of their deposit liabilities in liquid assets as a reserve, and are at liberty to lend the remainder to borrowers. Bank reserves are held as cash in the bank or as balances in the bank's account at the central bank. The country's central bank determines the minimum amount that banks must hold in liquid assets, called the "reserve requirement" or "reserve ratio". Most commercial banks hold more than this minimum amount as excess reserves. Bank deposits are usually of a relatively short-term duration, and may be "at call", while loans made by banks tend to be longer-term, resulting in a risk that customers may at any time collectively wish to withdraw cash out of their accounts in excess of the bank reserves. The reserves only provide liquidity to cover withdrawals within the normal pattern. Banks a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Taqi Usmani
Muhammad Taqi Usmani (born 5 October 1943) is a Pakistani Islamic scholar and former judge who is the current president of the Wifaq ul Madaris Al-Arabia and the vice president and Hadith professor of the Darul Uloom Karachi. An intellectual leader of the Deobandi movement, he has authored 143 books in Urdu, Arabic and English, including a translation of the Qur'an in both English and Urdu as well a 6-volume commentary on the ''Sahih Muslim'' in Arabic, ''Takmilat Fath al-Mulhim'' and ''Uloomu-l-Quran''. He has written and lectured extensively on hadith, and Islamic finance. He chairs the Shariah Board of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). He is also a permanent member of the Jeddah-based International Islamic Fiqh Academy, an organ of the OIC. In Pakistan, Usmani served as a scholar judge on the Shariat Appellate Bench of the Supreme Court from 1982 to 2002, and on the Federal Shariat Court from 1981 to 1982. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Profit
In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment. Historical cost ''vs.'' market value The rate of profit depends on the definition of ''capital invested''. Two measurements of the value of capital exist: capital at historical cost and capital at market value. Historical cost is the original cost of an asset at the time of purchase or payment. Market value is the re-sale value, replacement value, or value in present or alternative use. To compute the rate of profit, replacement cost of capital assets must be used to define the capital cost. Assets such as machinery cannot be replaced at their historical cost but must be purchased at the current market value. When inflation occurs, historical cost would not take account of rising prices of equipment. The rate of profit would be overestimated using lower historic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Libor
The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is usually abbreviated to Libor () or LIBOR, or more officially to ICE LIBOR (for Intercontinental Exchange LIBOR). It was formerly known as BBA Libor (for British Bankers' Association Libor or the trademark bba libor) before the responsibility for the administration was transferred to Intercontinental Exchange. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world. Libor was phased out at the end of 2021, and market participants are being encouraged to transition to risk-free interest rates. As of late 2022, parts of it have been discontinued, and the rest is scheduled to end within 2023; the Secured Overnight Financing Rate (SOFR) is its replacement. Libor rates are calculated for five currenc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Imputed Rent
Imputed rent is the rental price an individual would pay for an asset they own. The concept applies to any capital good, but it is most commonly used in housing markets to measure the rent homeowners would pay for a housing unit equivalent to the one they own. Imputing housing rent is necessary to measure economic activity in national accounts. Because asset owners do not pay rent, owners' imputed rent must be measured indirectly. Imputed housing rent is the economic theory of imputation applied to real estate: that the value is more a matter of what the buyer is willing to pay than the cost the seller incurs to create it. In this case, market rents are used to estimate the value to the property owner. Thus, imputed rent offers a way to compare homeowners' and tenants' economic decisions. More formally, in owner-occupancy, the landlord–tenant relationship is short-circuited. Consider a model: two people, A and B, each of whom owns property. If A lives in B's property, and B ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mecelle
The Mecelle was the civil code of the Ottoman Empire in the late 19th and early 20th century. It was the first attempt to codify a part of the Sharia-based law of an Islamic state. Name The Ottoman Turkish name of the code is ''Mecelle-ʾi Aḥkām-ı ʿAdlīye'', which derives from the Arabic ''مجلة الأحكام العدلية'', ''Majallah el-Ahkam-i-Adliya''. In European languages, it has also been transliterated as ''Mejelle'', ''Majalla'', ''Medjelle'', or ''Meğelle''. In French, it is known as ''Medjéllé'' or as the ''Code Civil Ottoman''. History Enactment The code was prepared by a commission headed by Ahmed Cevdet Pasha, including a large team of scholars, issued in sixteen volumes (containing 1,851 articles) from 1869 to 1876 and entered into force in the year 1877. In its structure and approach it was clearly influenced by the earlier European codifications. Family law, which had been originally exempted and left in the domain of religious courts, eventua ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
