Search results

1 – 10 of 11
Content available
Article

Mohamad Akram Laldin and Hafas Furqani

This paper aims to observe the development of the Sharīʿah governance framework (SGF) and practice in Islamic financial institutions (IFIs) in Malaysia.

Abstract

Purpose

This paper aims to observe the development of the Sharīʿah governance framework (SGF) and practice in Islamic financial institutions (IFIs) in Malaysia.

Design/methodology/approach

The study is a qualitative-based research. It uses various documents and content analysis approach to understand and analyze the structure, process and practice of SGF in IFIs in Malaysia.

Findings

It is found that the Central Bank of Malaysia, Bank Negara Malaysia, has attempted to develop a comprehensive framework of Sharīʿah governance for IFIs in Malaysia. The framework governs the practice of the industry, covers stakeholders’ scope of duties and responsibilities and provides details on processes and procedures in the operations of IFIs to achieve the objective of Sharīʿah compliance. To maintain the relevance of the SGF to the needs of the industry, the framework has also been updated recently in 2017. The amendments aim to strengthen the effectiveness of Sharīʿah governance implementation within the Islamic finance industry.

Originality/value

This study attempts to comprehensively examine the evolution of the SGF Sharīʿah governance framework for IFIs in Malaysia. The Malaysian model of the SGF is unique and could be emulated by other countries in developing the Islamic finance industry in their respective jurisdictions.

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

Keywords

To view the access options for this content please click here
Article

Hafas Furqani, Gunawan Adnan and Ratna Mulyany

This paper aims to explore ethics in Islamic economics by establishing the micro-foundations of Islamic economics. This is done by conceptualizing the behavioural…

Abstract

Purpose

This paper aims to explore ethics in Islamic economics by establishing the micro-foundations of Islamic economics. This is done by conceptualizing the behavioural assumptions of the individual in an Islamic framework. It also argues that ethical positions that attached endogenously in individual behaviour would have implications in the macro-socio realm influencing society, institution and organization in an Islamic economic system.

Design/methodology/approach

The study is qualitative-based research. It explores the literature on ethics in Islamic economics to understand and analyse the concept of individual behaviour in the Islamic perspective that will be the micro-foundations of Islamic economic analysis.

Findings

It is found that the ethical commitment of individuals (as envisaged in the micro-foundations of Islamic economics) would bring socio-macro implications in the practical realm. The micro-foundations of Islamic economics would function as the basis of the economic explanation of the aggregate relationship of individual, state and society. It also serves as the basis in explaining socio-macro dynamics influencing individuals, society, as well as organizations and institutions.

Research limitations/implications

The paper limits its analysis of developing the concept of ethical endogeneity in Islamic man behaviour to be the micro-foundations of Islamic economics and its macro-implications.

Originality/value

This study attempts to show that ethics should not only be inseparable in an economic framework but also an endogenous dimension in individual behaviour. The micro-foundations of Islamic economics are developed based on Islamic values on the characteristics and behaviour of an individual that would not only describe the true nature of man but also support his well-being.

Details

International Journal of Ethics and Systems, vol. 36 no. 3
Type: Research Article
ISSN: 2514-9369

Keywords

To view the access options for this content please click here
Article

Mohammad Mahbubi Ali, Abrista Devi, Hafas Furqani and Hamzah Hamzah

This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.

Abstract

Purpose

This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.

Design/methodology/approach

This study uses the analytic network process (ANP) to gather expert opinions and responses from academics, regulators and practitioners.

Findings

The ANP analysis discovered that the level of Islamic financial inclusion in Indonesia is influenced by two main drivers: the supply and the demand. The demand factors for Islamic financial inclusion, ranked based on their level of significance, are as follows: financial literacy (0.27), religious commitment (0.22), socioeconomic factor (0.19) and social influence (0.17), respectively. From the supply side, primary catalysts for Islamic financial inclusion based on their level of importance are human capital (0.32), product and services (0.24), infrastructure (0.18) and policies and regulation (0.17), respectively.

Research limitations/implications

The present study does not include the Islamic insurance sector in its determinant framework of Islamic financial inclusion in Indonesia.

Practical implications

This study serves as a reference for regulators in formulating appropriate policy strategies to strengthen the Islamic financial inclusion in Indonesia.

Originality/value

This study is a pioneer attempt to identify distinctive factors that influence the level of Islamic financial inclusion in Indonesia by analyzing expert opinions from diverse groups of Islamic finance stakeholders.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 13 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

To view the access options for this content please click here
Article

Mohamad Akram Laldin and Hafas Furqani

The paper aims to investigate the dimensions of maqasid al-Shari'ah in Islamic finance by exploring the ends (maqasid) and the means (wasa'il). Those would clarify the…

Abstract

Purpose

The paper aims to investigate the dimensions of maqasid al-Shari'ah in Islamic finance by exploring the ends (maqasid) and the means (wasa'il). Those would clarify the nature and goals of Islamic finance as well as its directional development.

Design/methodology/approach

Using literature in English and Arabic sources in the area of maqasid al-Shari'ah, as well as from the reading of the primary sources (the Qur'anic texts/nusus), the paper attempts to delineate the dimensions that would constitute the ends (maqasid) and the means (wasa'il) in Islamic finance.

Findings

The paper explicates three specific ends (maqasid) in Islamic finance, namely wealth circulation, fair and transparent financial practices and justice at the micro- and macro-level. To achieve those ends, the Shari'ah provides means (wasa'il) such as facilitating financial contracts, establishing values and standards and instituting social responsibility.

Research limitations/implications

The paper is a conceptual paper that explores the dimensions of maqasid al-Shari'ah in Islamic finance.

Practical implications

The findings of this paper will give insights on the ends (maqasid) and the means (wasa'il) in Islamic finance based on the maqasid al-Shari'ah discourse. It could be used as a reference in understanding the nature of Islamic finance and in developing a sound and solid Islamic finance based on the Shari'ah.

Originality/value

The paper proposes the ends-and-means criteria in Islamic finance, developed on the basis of the maqasid al-Shari'ah discourse as well as from direct reading of the texts (nusus), which is lacking in the Islamic finance literature.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 6 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

To view the access options for this content please click here
Article

Hafas Furqani and Mohamed Aslam Haneef

The purpose of this paper is to attempt to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of…

Abstract

Purpose

The purpose of this paper is to attempt to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation.

Design/methodology/approach

The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics.

Findings

The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal‐integrity (doctrinal integrity, logical integrity and factual integrity) and relational‐unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori).

Research limitations/implications

The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis.

Practical implications

The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced.

Originality/value

The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.

To view the access options for this content please click here
Article

Hafas Furqani and Mohamed Aslam Haneef

This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and…

Abstract

Purpose

This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation.

Design/methodology/approach

The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics.

Findings

The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal‐integrity (doctrinal integrity, logical integrity and factual integrity) and relational‐unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori).

Research limitations/implications

The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis.

Practical implications

The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced.

Originality/value

The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.

Details

Humanomics, vol. 29 no. 3
Type: Research Article
ISSN: 0828-8666

Keywords

To view the access options for this content please click here
Article

Hafas Furqani

The paper aims to produce new key terminologies for the microfoundations of Islamic economics. The paper attempts to investigate the microfoundations of Islamic economics…

Abstract

Purpose

The paper aims to produce new key terminologies for the microfoundations of Islamic economics. The paper attempts to investigate the microfoundations of Islamic economics by exploring new perspective in the key concepts and key terminologies that would explain the behavior of individual and society in an Islamic ethical framework.

Design/methodology/approach

The paper is a conceptual paper that attempts to explore the microfoundations of Islamic economics from the primary sources of Qur’anic texts. Literature on the topics, from an Islamic and mainstream economics perspective, are reviewed critically in a comparative perspective.

Findings

The key concepts of self-interest, utility maximization and rationality are critically evaluated in an Islamic perspective and new key concepts of huquq, maslahah maximization and taqwa are proposed as alternatives. Those new key terminologies will broaden the horizon in understanding of economic realities of man and society and their relationship and well-being.

Research limitations/implications

The paper is based on conceptual explorations of literature in the microfoundations of economics in the mainstream economics and Islamic economics. This is a conceptual paper, so it did not use any empirical analysis.

Practical implications

The findings of this paper will give insights of the microfoundations of Islamic economics as a discipline. Those unique key terminologies derived from the textual source of Islam (nusus) and intellectual tradition (turath) are important in the attempt to develop a solid body of knowledge.

Originality/value

The paper proposes new key concepts and terminologies to be the microfoundations of Islamic economics as a discipline. It is a new approach in understanding behavior of individual and society in Islamic perspective which are different from the other approach, which modifies the conventional terminologies by adding “Islamic” prefix, such as “Islamic” utility or “Islamic” rationality.

Details

Humanomics, vol. 31 no. 1
Type: Research Article
ISSN: 0828-8666

Keywords

Content available
Article

Abstract

Details

Humanomics, vol. 30 no. 1
Type: Research Article
ISSN: 0828-8666

Keywords

Content available
Article

Ashraf Md. Hashim

Abstract

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

Content available
Article

M. Kabir Hassan

Abstract

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 6 no. 4
Type: Research Article
ISSN: 1753-8394

1 – 10 of 11