Riba, Bank Interest and the Rationale of Its Prohibition

FOREWORD
PREFACE
INTRODUCTION
	Tawheed
	ECONOMY WITHOUT INTEREST
	Liability Side of an Islamic Bank
	Capital Protection
	Assets of an Islamic Bank
		Sharing Based Modes of Finance
		Trade Based Modes of Financing
	Murabahah
	The Problem of Default
	Other Asset Based Instruments
	Islamic Banking in the Private Sector
	Non Bank Islamic Financial Institutions
	Islamic Insurance/Takaful Companies
	Stocks, Options, Derivatives and Risk Management
	Islamic Finance Under State Sponsorship
		Islamic Banking and Finance in South East Asia
		Islamic Finance in Sudan
	Iran, Turkey
	Pakistan, Bangladesh
	The Islamic Development Bank
	Islamic Finance and International Finance
	ECONOMICS OF ISLAMIC FINANCE
	Relative Stability of Islamic Financial System
		Absorption of Real Shocks
		Stability in the Monetary Sector
	Exogenous Sources of Instability
	Relative Stability with Fixed Liabilities
	Limited Scope of Speculation in an Islamic Financial System
	Relative Efficiency of an Islamic Financial System
		Uncertainty and Efficiency
	Meeting Uncertainty
	Comparative Advantage
	Fairness of the Islamic Financial System
	Sharing Enhances Equity
	Growth with Islamic Finance
	MEETING SPECIAL NEEDS
	Consumer Finance
	Islamic Modes of House Finance
	Credit Cards
	Financing Agriculture
	Government Finance
	Deficit Financing
	Muslim Minorities and Islamic Finance
Regulation and Governance
Inflation
Indexation
CONCLUSIONS AND PROSPECTS
INDEX
			INTRODUCTION
			WHY THIS BOOK?
				ISLAM AND ITS LAWS
					Tawheed
			Justice and Equity
					The Individual
					Role of the State
					History
			Justice in Finance
			Islamic Rules for Exchange
			Conclusions
	Quran on Riba
	The Riba Owed to Abbas
	Reason of Prohibition
	Profits Versus Interest
	The Issue of Bank Interest
	Arguments for Bank Interest
	Conclusions
	Liability Side of an Islamic Bank
		Capital Protection
	Assets of an Islamic Bank
		Sharing Based Modes of Finance
		Trade-Based Modes of Financing
	Murabahah
	The Problem of Default
	Other Asset Based Instruments
	Islamic Banking in the Private Sector
	Non Bank Islamic Financial Institutions
	Islamic Investment Companies
	Islamic Mutual Funds
	Islamic Insurance/Takaful Companies
	Stocks, Options, Derivatives and Risk Management
	Islamic Finance under State Sponsorship
		Islamic Banking and Finance in South East Asia
		Islamic Finance in Sudan
	Iran, Turkey
	Pakistan, Bangladesh
	The Islamic Development Bank
	Islamic Finance and International Finance
	Conclusions
	Relative Stability of Islamic Financial System
		Absorption of Real Shocks
		Stability in the Monetary Sector
	Exogenous Sources of Instability
	Relative Stability with Fixed Liabilities
	Limited Scope of Speculation in an Islamic Financial System
	Relative Efficiency of an Islamic Financial System
		Uncertainty and Efficiency
	Meeting Uncertainty
	Comparative Advantage
	Fairness of the Islamic Financial System
	Sharing Enhances Equity
	Growth with Islamic Finance
	Conclusions
	CHAPTER  5
		MEETING SPECIAL NEEDS
	Consumer Finance
	Islamic Modes of House Finance
	Credit Cards
	Financing Agriculture
	Government Finance
	Deficit Financing
	Muslim Minorities and Islamic Finance
	Conclusions
Regulation and Governance
Inflation
Indexation
Conclusions
Future of Islamic Finance
	FOR ALLAH ALONE IS EVERLASTING EXISTENCE
	Assets
	Bank interest
	Bay‘al Dayn
	Bay‘al Wafa
	Collateral
	Commercial interest
	Consumer
	Contract
	Cost
	Cost plus
	Credit cards
	Credit sales
	Creditworthiness
	Crisis
	Currency
	Employment
	Exchange
Fasad
	Financial lease
Fulus
Gharar
	House Finance
Ihsan
Ijara-wa-iqtina’
	Investment
	Islamic banks
Liabilities
Liquidity
Maqasid al-shariah
Market
Maslaha
Musaqat
Musharakah
Muzara‘ah
Price
Rating agency
Regulation
Rent
Rental
Salam
Saving
Saving deposits
Securitization
Service charges
Shahamah
Shamam
Shirkah
Trade-based
Wakalah