This book — a collection of papers from a special issue on Islamic Economics and Finance (IEF) published in the Singapore Economic Review — focuses on providing financial services to the growing Muslim population based on Islamic principles, particularly the prohibition of interest-based transactions. The IEF industry has seen significant growth over the last two decades, primarily driven by the growth of Islamic banking. However, it has faced various challenges including competition from traditional finance, regulatory and accounting issues, harmonization of practices, and the impact of global crises.
The collection highlights inconsistent findings on the performance of Islamic financial institutions compared to conventional banks, and the need to explore new dimensions beyond just comparisons. Lastly, it also emphasizes the importance of expanding Islamic finance beyond banking into non-banking sectors and using technology to improve financial inclusion. In conclusion, there is a noteworthy dominance of Islamic banking (over 70% of IEF activities) and research needs on leveraging fintech, automation and blockchain to expand the scope of Islamic finance.
The volume provides an overview of the 20 papers included in the special issue, which are divided into five themes: (1) Islamic finance and disclosure governance, (2) market volatility linkages in Organization of Islamic Cooperation nations and institutions, (3) financial inclusion, efficiency, and growth in Islamic banks, (4) risk metrics of novel Islamic finance instruments, and (5) contemporary research applications.
Contents:
- Building Trust in Waqf Management — Implications of Good Governance and Transparent Reporting (Rashedul Hasan, Abu Umar Faruq Ahmad and Siti Alawiah Bt Siraj)
- Impact of Non-Intermediation Activities of Banks on Economic Growth and Volatility: An Evidence from OIC (Mohsin Ali, Mansor H Ibrahim and Mohamed Eskandar Shah)
- Competition-Stability Relationship in Dual Banking Systems: Evidence from Efficiency-Adjusted Market Power (Mudeer Ahmed Khattak, Omar Alaeddin and Moutaz Abojeib)
- Shari'ah Oriented Precious Metal Backed Cryptocurrency: From Shari'ah Advisors' and Financial Experts' Perceptions (Mousa Ajouz, Adam Abdullah and Salina Kassim)
- Individual's Behavior and Access to Finance: Evidence from Palestine (Fadi Hassan Shihadeh)
- Impact of Islamic Finance on Economic Growth: An Empirical Analysis of Muslim Countries (Syeda Arooj Naz and Saqib Gulzar)
- Determinants of Credit Risk: A Comparative Analysis between Islamic and Conventional Banks in Bangladesh (Md Nurul Kabir, Mohammad Dulal Miah and Rubaiya Nadia Huda)
- Comparative TFP Growth between GCC Conventional and Islamic Banks before and after the 2008 Financial Crisis (Azzeddine Azzam and Belaid Ret)
- Does Foreign Aid Help or Hinder the Institutional Quality of the Recipient Country? New Evidence from the OIC Countries (Mohammad Ashraful Ferdous Chowdhury, Mohamed Ariff, Mansur Masih and Izlin Ismail)
- The Investment Account Holders Disclosure Level in the Annual Reports of Islamic Banks: Construction of IAHs Disclosure Index (Raoudha Saidani, Neila Boulila Taktak and Khaled Hussainey)
- AAOIFI Accounting Standards and a Theory of Interest-Free Banking (Assyad Al-Wreiket, Ali Ashraf, Ola Al-Sheyab, M Kabir Hassan and Ivan Julio)
- Domains and Motives of Musharakah Spur in the Islamic Banking Industry of Pakistan (Muhammad Nouman, Karim Ullah and Shafiullah Jan)
- Financial Inclusion, Institutional Quality, and Financial Development: Empirical Evidence from OIC Countries (Minhaj Ali, Muhammad Imran Nazir, Shujahat Haider Hashmi and Wajeeh Ullah)
- Does Financial Inclusion Drive the Islamic Banking Efficiency? A Post-Financial Crisis Analysis (Hasanul Banna, Md Rabiul Alam, Rubi Ahmad and Norhanim Mat Sari)
- Low-Frequency Volatility and Macroeconomic Dynamics: Conventional Versus Islamic Stock Markets (Hong-Bae Kim and A S M Sohel Azad)
- Does Islamic Finance Follow Financial Hierarchy? Evidence from the Malaysian Firms (Mamoru Nagano)
- The Economic Cost of Revolution: The Iranian Case. A Synthetic Control Analysis (Serhat Hasancebi)
- Islamic Blended Finance for Circular Economy Impactful SMEs to Achieve SDGs (Tariqullah Khan and Fatou Badjie)
- Hybrid Review of Islamic Pricing Literature (Md Abdullah Al Mamun, M Kabir Hassan, Md Abul Kalam Azad and Mamunur Rashid)
- A Contemporary Review of Islamic Finance and Accounting Literature (M Kabir Hassan, Sirajo Aliyu and Mumtaz Hussain)
Readership: Islamic finance scholars and PhD, Advanced Undergraduate, and Master's students.