may chua's List: Islamic banking

• Islamic Banking Concepts
• Wadiah Yad Dhamanah (deposits with guarantee)
• Mudharabah (profit-sharing)
• Musyarakah (joint venture)
• Murabahah (cost plus)
• Bai' Bithaman Ajil (deferred payment sale)
• Bai' Dayn (debt trading)
• Bai' Inah (Sell and buy back)
• Ijarah Thumma Bai' (leasing and subsequently purchase)
• Ijarah (leasing)
• Qard (interest-free loan)
• Bai' Salam (future delivery)
• Bai' Istijrar (supply contract)
• Kafalah (guarantee)
• Rahnu (collateralised borrowing)
• Wakalah (nominating another person to act)
• Hiwalah (remittance)
• Sarf (foreign exchange)
• Ujr (fee)
• Hibah (gift)

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• • Issuance of the world's first global sovereign sukuk: US$600 million Malaysian Global Sukuk in 2002
     
     
   
  • Issuance of the world's first global corporate Islamic bond, sukuk Ijarah worth US$150 million in 2001 by Kumpulan Guthrie Berhad
     
     
   
  • Issuance of the world's first Shariah compliant exchangeable bond worth US$750 million by Khazanah Nasional Berhad
     
     
   
  • Malaysia ranks first for sukuk issuance (67% of global outstanding sukuk)
     
     
   
  • Malaysia ranks third for global sukuk issuance (7% of global outstanding sukuk in international currencies)
     
     
   
  • International Finance Corporation launched the first ringgit-denominated Islamicbond totaling US$135.9 million
     
     
   
  • World Bank (International Bank for Reconstruction and Development) launched US$206.5 million ringgit-denominated Islamic bond
     
     
   
  • 86% of total securities on Bursa Malaysia are Shariah-compliant securities representing about 65% of the total market capitalisation cutting across 50 different economic activities
     
     
   
  • 36% of all Shariah listed equity funds in the world are listed in Bursa Malaysia
     
     
   
  • Malaysian Islamic capital market recognised by the Dow Jones Islamic Market as a global market
     
     
   
  • Malaysia is Founding Member and the host country for the Islamic Financial Services Board
     
     
   
  • Fast becoming regional centre for Islamic supranational fund-raising
     
     
   
  • Establishment of the International Centre for Education in Islamic Finance as a centre of excellence in the development of professionals and talents in Islamic finance

• Effective Legal and Regulatory Framework
• Conducive Shariah Framework
• Progressive Institutional Infrastructure and Product Development
• Adequate Pool of Talents and Resources

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• • Government Securities
   
  • Islamic Securities / Sukuk
   
  • Other Securities
   
  • Islamic Deposits Facility

• This concept has been practised in  various forms for over 1400 years.
• Principles of Takaful
   
    The principles of Takaful are as follows:
   
        * Policyholders co-operate among themselves for their common good.
        * Every policyholder pays his subscription to help those that need assistance.
        * Losses are divided and liabilities spread according to the community pooling system.
        * Uncertainty is eliminated in respect of subscription and compensation.
        * It does not derive advantage at the cost of others.
  
• There are three (3) models and several variations on how takaful can be implemented.
   
       1. Mudharabah Model
       2. Wakalah Model
       3. Combination of both

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• Emergence of Islamic Banking
• Goals of Islamic Banking
• Comparison between Islamic and Conventional Banking
• Islamic Financial system in Malaysia

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•       Three get licence for Islamic fund management
•       Foreigners still find good values in M’sia
• Some of the latest Islamic capital market initiatives
•       Some of the latest Islamic capital market initiatives
•       Zarinah: Expand Islamic securities market value chain
•       Need For More Islamic Finance Experts

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