The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking (Google eBook)

Yahia Abdul-Rahman

John Wiley & Sons, Jan 7, 2010 - Business & Economics - 396 pages

"A detailed look at the fast-growing field of Islamic banking and finance The Art of Islamic Banking and Finance is a modern American take on what it means to incorporate Islamic finance principles into everyday banking and investment techniques by introducing a new brand of banking for all people of all faiths: The Riba-Free (RF) banking. The author is considered the father of RF (Islamic) banking in America. He has been a banker and an Imam/scholar for over 40 years in America since 1968. He started the tedious process with a finance company, LARIBA, in Pasadena, California in 1987. This is the first book ever in the field to trace the origins of prohibiting the renting of money at a price called interest rate and over-indulging in debt. The book reviews in great details the theological foundations of prohibiting interest in the Jewish Bible, the Christian Bible, and the Qur'aan. The author then discusses money and how fiat money is created, the role of the Federal Reserve, and the banking system in America. The book also discusses for the first time ever how to include an important aspect of RF (Islamic) finance using commodity indexation and marking the items to be financed to market in order to avoid participating in economic "bubbles." The author discusses how these rules work, how they affect consumer behavior, and how they change the role of the banker/financier. Covers a new pioneering model that is based on the Law (Shari'aa) and how it is applied in every transaction from joint ventures and portfolio management to home mortgages and personal financing. Shows how to incorporate the Law (Shari'aa) into American financing and banking systems. Points to RF (Islamic) finance and banking as a way to emphasize socially responsible investing The Art of Islamic Banking and Finance also includes a discussion on the emergence of a culture of RF (Islamic) banking and finance today, which is based on the real Judeo-Christian-Islamic spirit and very effective when compared to twentieth-century models that use financial engineering and structuring techniques to circumvent the Law (Shari'aa). The book also includes case studies based on the actual experience of the author and detailed analysis of the superior results realized by applying this new brand of banking to financing"--Provided by publisher.

What people are saying

User Review -

Filled with clever experiments, engaging ideas and Written succinctly with an easy to understand text strongly recommended for all.Dr Yahia review with a solid experience in Islamic Finance and a novel approach in Solving the things bring a lot of insight into the practicalities in Islamic Finance.Real life examples and the successive breakthrough through the implementation in USA would be a big boost and the tough to put down once started reading.  

User Review -

“Dr. Abdul-Rahman is to be commended for his contribution in practice and knowledge in this pioneer work taking place in the USA – His historic articulation among religions is very enlightening and makes his proposition authentic and divine-based without controversy. What seems of more value, however, is offering his vast experience and laying down a comprehensive roadmap for whoever wants to join him, and hopefully the masses interested to follow the divine wisdom in using the RF system. Clearly stated is not only its connection with justice, fairness and social consciences but also as a shrewd business acumen for a successful and long lasting social-economic system… Dr. Samir Arafeh…Los Angeles, California” 

Contents

• Tools and Techniques for CommunityBased Banking Chapter 1 Introduction: 1
• Tools and Techniques for CommunityBased Banking Chapter 2 The FaithBased JudeoChristianIslamic Foundation of the Prohibition of Interest and t...: 13
• Tools and Techniques for CommunityBased Banking Chapter 3 The Rule of Commodity Indexation and the Principle of Marking to the Market: 47
• Tools and Techniques for CommunityBased Banking Chapter 4 Shariaa Shariaa Boards in Islamic Banks An Overview and a Vision for the Future: 61
• Tools and Techniques for CommunityBased Banking Chapter 5 Money and Its Creation The Federal Reserve System Central Banks Interest Rates and...: 84
• Tools and Techniques for CommunityBased Banking Chapter 6 Civility and Social Responsibility of the RibaFree Banking System: 132
• Tools and Techniques for CommunityBased Banking Chapter 7 The Conventional RibaBased Banking System: 154
• Tools and Techniques for CommunityBased Banking Chapter 8 What Is the Difference? Comparing RibaFree Banking and Conventional RibaBased ...: 191
• Tools and Techniques for CommunityBased Banking Chapter 9 Islamic Banking in the 20th Century: 204
• Tools and Techniques for CommunityBased Banking Chapter 10 RF Banking Model for the 21st Century Developing the ShariaaBased Finance Model: 226
• Tools and Techniques for CommunityBased Banking Chapter 11 Starting an RF Bank in the United States Acquiring and Restructuring a Troubled B...: 280
• Tools and Techniques for CommunityBased Banking Chapter 12 Operating an RF Bank in the United States: 315
• Tools and Techniques for CommunityBased Banking Chapter 13 Case Studies Developing the RF Banking Investment Products: 357
• Tools and Techniques for CommunityBased Banking Chapter 14 Visions for the Future of RF Banking: 371
• Tools and Techniques for CommunityBased Banking Chapter 15 A New Banking Vision for the 21st Century: 379
• Tools and Techniques for CommunityBased Banking Index: 382

About the author

Dr. Yahia Abdul-Rahman is the CEO and Chairman of the Bank of Whittier, as well as the founder and Chairman of American Finance House: LARIBA, which has offered Islamic finance and banking research and instruments since July 1987. Dr. Yahia has more than forty years of highly diversified experience in the banking and oil and gas industries. His area of expertise lies in international, investment, and Islamic banking, project financing, small- and medium-sized business financing, community banking, bank management, and financial services. Dr. Yahia is the author of many papers on faith-based financing and financial instruments, and he speaks regularly at forums focused on Islamic finance at many universities, including Harvard University and institutions in Egypt, Malaysia, Singapore, Bahrain, Saudi Arabia, Dubai, and Turkey.

Bibliographic information

• Title: The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking; Volume 504 of Wiley Finance; Wiley finance editions
• Author: Yahia Abdul-Rahman
• Edition: illustrated
• Publisher: John Wiley & Sons, 2010
• ISBN: 0470449934, 9780470449936
• Length: 396 pages
• Subjects: Business & Economics / Banks & Banking; Business & Economics / Finance; Religion / Islam / Law