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This chapter offers a practitioners’ perspective on how Islamic banks in Malaysia deal with unlawful sources of funds. Specifically, it investigates the practice of Islamic banks in Malaysia in dealing with funds that originate from unlawful sources such as accepting deposits for safe-keeping and investment and providing financial facilities to customers whose incomes come from unlawful sources. This is regardless of whether the sources of fund are wholly unlawful or there is a mix of lawful and unlawful sources. A quantitative methodology is adopted to collect data from selected industry practitioners who are directly involved with Islamic banks, mainly officers of Sharīʿah departments, members of Sharīʿah committees and other stakeholders of Islamic banks. Based on a simple descriptive analysis, it is found that majority of the respondents opine that when the sources of funds are deemed unlawful, the bank cannot accept such deposits, investments or give financing to a customer if he or she is known to possess unlawful sources of funds. With respect to the mixed sources of funds or activities, that is, lawful and unlawful, the bank should not be prevented from receiving the funds either for safe-keeping, investment or payment of financing. The study also finds that banks have the right to investigate the sources of funds of the customers whether they are derived from Sharīʿah compliant, non-Sharīʿah compliant or mixed sources as part of the general due diligence implemented by such banks.

The development of banking in Africa followed the demand of exchange networks from traditional indigenous economies to colonial exchange with the European world. The establishment of European banking institutions reflected the needs of the capitalist economy introduced by colonialism. The banking management of late nineteenth century and early twentieth century European banks adhered to the interests of shareholders. This chapter shows the emergence of well-managed banks in Africa, but after decolonization the political economy of African independence resulted in state capturing of financial institutions in most African countries. The South African banking system developed in close adherence to the British model. State-owned post-independence banks in Africa failed to deliver the development envisaged. The chapter shows the adverse impact of global economic developments on Africa, resulting in high debt levels. Structural adjustment of African economies and new market-oriented policies allowed the development of locally owned private banking institutions. The high-cost structure of the formal banking system from the dominant South African banks incentivised the mobile money innovation, an arena where African entrepreneurs lead global markets. Financial inclusion remains low in Africa.

This paper aims to critically investigate the liquidity risk management of Islamic banks and develop an alternative regulatory framework appropriate for liquidity management of these banks.

The specific risk profile of an Islamic bank requires developing a new and more efficient regulatory framework, which relies on risk- sharing and symmetric information among parties. The paper makes a differentiation between small local banks and internationally active Islamic banks and proposes to apply liquidity requirements only for internationally active Islamic banks.

A new proposal for the liquidity coverage ratio (LCR) of Islamic banks is developed in this paper towards mitigating risks and concurrently protecting the interests of investment account holders. Minimum and maximum thresholds are proposed for each liquid asset in this new LCR framework. An alternative liquidity approach is discussed to complement the proposal and several policy options are suggested.

As participation banks are exposed to market liquidity and market risks, more high-quality liquid instruments within a risk-sharing regulatory framework may provide the inner adjustment process through which any mismatch regarding maturity, risk, value or linkage with the real economy is corrected systematically. It offers policy implications for regulators, supervisors and international organizations.

The African Caribbean Library Association's (ACLA) current Chair is Gloria Lock of Wandsworth Libraries. I interviewed her recently about the Association — the results of which are reproduced here with her consent.

The purpose of this monograph is to touch on some of the difficulties encountered in the passing of title to goods or the taking of a security interest in goods. The law is in a hopelessly complicated and technical mess which serves neither the interests of consumers or businessmen. It is particularly appropriate to look at this area at this time, as Professor Aubery Diamond, at the request of the Minister of Corporate and Consumer Affairs (Mr. Michael Howard M.P.), is examining the need for alteration of the law relating to security over property other than land. To this end Professor Diamond has issued a Consultation Document in which he poses a number of questions for the legal and business community to consider, it is to be hoped that the Government will act on any proposals produced instead of consigning them to a limbo as was done with the Law Reform Committee's Twelfth Report on ‘Transfer of Title to Chattels’ and with the proposed ‘Lending and Security Act’ suggested by the Crowther Committee on Consumer Credit in 1971.

Heavy debt burdens and corruption have not only had a debilitating effect on development but also undermined efforts at economic recovery and market‐enhancing initiatives in many African countries. Africa is the world’s most aid‐dependent and indebted region of the world. Much of the resources that could have been ploughed into investments are used to service debts and/or misappropriated by corrupt leaders – with all the attendant negative perceptions of Africa’s business environment. Therefore, in developing a “business plan” for Africa’s economic renascence, corruption and debt management and mismanagement (by both lenders and borrowers) need to be put squarely on the agenda. Against the backdrop of the currency of opinion for debt relief, this paper highlights the institutional processes that underlie the misallocation and misappropriation of original receipts, policy dynamism of their management and the overall market impact.

This study seeks to identify the types of incidents which cause consumers to switch between banks, the weighting of each incident on the switching decision, whether single or multiple incidents influence switching decisions, and the extent to which switchers explain the problems they have faced prior to exiting. The key findings show that bank switching is strongly influenced by three types of incident: service failures, pricing and inconvenience, with pricing being more influential. Seventy‐five percent of bank switching is caused by more than one incident, and some 7 percent of respondents said they had spoken to bank staff in the period before exiting. The implications of these findings are presented.

This paper aims to provide an essential framework for establishing Shariah-compliant deposit insurance scheme, by reviewing the Shariah provisions concerning the available approaches for deposit guarantee, types of deposits in Islamic financial institutions and the permissible party to incur the cost of this guarantee.

This paper reviews the Fiqh rules and principles approved by the well-known Islamic Fiqh references, as well as the resolutions of International Islamic Fiqh Academy (IIFA) and Shariah standards issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and presents these resolutions and judgments in a modern applicable way.

This paper recommends that the Islamic scheme for deposit insurance should be established based on Takaful insurance principle, and this scheme must adopt fund segregation principle to comply with Shariah provisions for guarantee permissibility.

The paper bridges the gap between theory and practice by highlighting how the proposed model can be initiated in practice, thus, it can influence public policy in countries with Islamic banking system.

This paper represents a significant contribution toward the establishment of a consensual Shariah-compliant Islamic deposit insurance model.