Rethinking Islamic Finance

Acknowledgments; Preface; Chapter 1: Introduction; Chapter 2: The Paradox of Risk Sharing; 2.1 Introduction; 2.2 Islamic Instruments; 2.3 The Dominance of Debt Based Contracts; 2.4 Concluding Remarks; Chapter 3: Freedom From Interest; 3.1 Introduction; 3.2 Islamic Instrument Structures; 3.3 Convergence of Conventional and Islamic Banking Rates; 3.4 Concluding Remarks; Chapter 4: Financial Crisis and Islamic Finance; 4.1 Introduction; 4.2 Islamic Banking, Financial Intermediation, and Risk Sharing; 4.3 Implications During Financial Crisis; 4.4 Concluding Remarks; Chapter 5: The Little Difference Between Sukuk and Bonds; 5.1 Introduction; 5.2 Sukuk Structures; 5.3 Determinants of Credit Ratings of Islamic Bonds; 5.4 Concluding Remarks; Chapter 6: Issuer's Choice of Islamic Bond Type; 6.1 Introduction; 6.2 Islamic Bond Structures; 6.3 Theories of Capital Structure; 6.4 Implications for Islamic Financing Choices; 6.5 Concluding Remarks; Chapter 7: Risk in Risk Sharing Sukuk; 7.1 Introduction; 7.2 Credit Risk in Risk Sharing Bonds; 7.3 Structural Credit Risk Models; 7.4 Concluding Remarks; Chapter 8: The Challenge of Shariah Compliance; 8.1 Introduction; 8.2 The Complexity of Shariah Compliant Structures; 8.3 The Agency Problem in Islamic Banks; 8.4 The Shariah Certification Dilemma; 8.5 The Role of the Regulator and Shariah Conscious Investor; 8.6 Concluding Remarks; Chapter 9: Replicating Conventional Finance; 9.1 Introduction; 9.2 Instrument Structures; 9.3 Behavioral Explanations; 9.4 Implications for Investor Preferences; 9.5 Concluding Remarks; Chapter 10: Can Islamic Banks Have Their Own Benchmark?; 10.1 Introduction; 10.2 Islamic Interbank Benchmark Rate (IIBR); 10.3 IIBR-LIBOR Benchmark Rates and Convergence; 10.4 Determinants of the 'Piety Premium'; 10.5 Empirical Analysis; 10.6 Conclusion; Chapter 11: Islamic Versus Conventional Equities; 11.1 Introduction; 11.2 The Structure of Islamic Equities; 11.3 Diversification Benefits; 11.4 The Performance of Islamic Equities; 11.5 A Theoretical and Empirical Perspective; 11.6 Concluding Remarks; Chapter 12: Charity in Islamic Banks - A Distinguishing Feature?; 12.1 Introduction; 12.2 Penalty Versus Charity; 12.3 The Size of the Charity Pie; 12.4 Charity Contribution Versus Asset Size; 12.5 Social Distribution of Charity; 12.6 Concluding Remarks; Chapter 13: Rethinking Islamic Finance: The Limits of Our Understanding; 13.1 Introduction; 13.2 Pillars of Islamic Economics; 13.3 Barriers to Understanding Islamic Finance; 13.4 Concluding Remarks; Chapter 14: Rethinking Islamic Finance: An Ethical Perspective; 14.1 Introduction; 14.2 Rethinking Islamic Finance - An Ethical Framework; 14.3 Integrative Social Contract Theory; 14.4 Rethinking Islamic Finance Through ISCT; 14.5 Way Forward; 14.6 Concluding Remarks; Chapter 15: Conclusion; Bibliography; Index