Contracts and Deals in Islamic Finance : A User�s Guide to Cash Flows, Balance Sheets, and Capital Structures.

Cover -- Title Page -- Copyright -- Contents -- Foreword -- Preface -- Acknowledgments -- Product Offerings -- Introduction -- Chapter 1 The Islamic Finance Space -- Modern Phase of Islamic Finance -- Chapter 2 Bai al Inah -- Definitions of Bai al Inah -- Bai al Inah Process Flow -- Legal Issues with Bai al Inah -- Bai al Inah as a Financial Product -- Asset Product -- Liability Product -- Transfer of Ownership -- Documentation Involved -- Resolutions on Bai al Inah -- Conclusion -- Chapter 3 Murabahah, Bai Mu'ajjal, and Bai Bithman Ajil -- Murabahah Sale/Credit Sale/Credit -- Enhancements to Murabahah -- Murabahah Working Capital -- Credit-Based Sale/Markup or Riba -- Bonafide Murabahah/True Sale -- Trading House Model -- Financial Services Division of a Manufacturer or Retailer -- Bai Bithman Ajil -- BBA with Inah -- Conclusion -- Chapter 4 Tawarruq -- Issue of Price Fixing -- Scenario 1 -- Scenario 2 -- Scenario 3 -- Transfer of Title -- Payment of Sales Tax -- Three Sales and Tawarruq -- Specialized Trading Platform -- Applications of Tawarruq in Banking Products -- Asset Products -- Commodity Murabahah Liability Product -- Real Economic Activity -- Conclusion -- Chapter 5 Deferred Payment Sale or Credit Sale -- Accounting Entries for Murabahah by Purchase Orderer -- Accounting Entries for a Bai al Inah Contract -- Pricing of Deferred Sales under Murabahah, BBA, Inah, and Tawarruq -- Modes of Payment of Spot Price and Deferred Price -- How Is the Deferred Price Calculated? -- Is Profit Mechanism Fixed or Floating? -- Discounting Receivable of a Murabahah Financing Contract -- Can Collateral Be Taken by the Seller? -- Risk Treatment of Deferred Payment Sales -- Credit Analysis and Credit Risk -- Risk-Weightage Charges and Expected Losses -- Risk Concentration -- Fixed Income Portfolio -- Conclusion -- Chapter 6 Bai Al Wafa.

Financial Assets as Subject of Sale -- Bai Al Wafa and Sale of Equities -- Bai Al Wafa and Sale of Sukuk -- Conclusion -- Chapter 7 Salaam and Istisna: Deferred Delivery Sale -- Salaam -- Accounting Treatment for Salaam Contract -- Can the Buyer Sell the Asset before Delivery to a Third Party? -- Default Scenarios -- Payment of Partial Purchase Price -- Types of Assets -- Istisna -- Accounting Treatment for Istisna -- Conclusion -- Chapter 8 Bai al Sarf -- Basic Rulings on Bai al Sarf -- Conclusion -- Chapter 9 Bai al Dayn -- Purchase Price, Rental Payments, Receivables, and Debt -- Rental Payments Due in an Ijara Contract -- Financial Products -- Sale of Equity -- Conclusion -- Chapter 10 Bai al Urbun -- Conclusion -- Chapter 11 Ijarah and Its Variants -- Normal Ijarah -- Accounting Entries for Ijarah Contract -- Ijarah Muntahiya Bi Tamleek -- Al Ijarah Thumma al Bai (AITAB) -- Sale and Leaseback -- Conclusion -- Chapter 12 Wadiah -- Forms of Wadiah -- Enhancements to Wadiah -- Money Creation -- Conclusion -- Chapter 13 Qard -- Applications of the Contract of Qard -- Qard as a Deposit Instrument -- Recording of Qard -- Conclusion -- Chapter 14 Mudharabah -- Simple Application of Mudharabah -- Perpetual Mudharabah -- Re-Mudharabah -- Restricted Mudharabah and Unrestricted Mudharabah -- Mudharabah as a Deposit -- Mudharabah as a Fund -- Interbank Mudharabah Placements -- Indicative Rate of Return -- Profit Sharing Ratio -- Importance of Disclosure and Accounting Treatments -- Mudharabah as an Asset Product -- Accounting Treatment of Mudharabah Transactions -- Conclusion -- Chapter 15 Musharakah -- Musharakah and Banking -- Mushrakah as Asset Product -- Pooling of Assets in Mushrakah -- Mushrakah Mutanaqisah -- Capital Charge -- Collateral -- Conclusion -- Chapter 16 Hibah -- Forms of Hibah -- Restrictions on Hibah -- Applications of Hibah in Banking.

Hibah Coupled with Ijarah -- Hibah Coupled with Wadiah -- Hibah and Bai al Wafa -- Hibah and Other Contracts of Sale and Exchange -- Enhancements to Hibah -- Hibah and Cost of Fund -- Conclusion -- Chapter 17 Kafalah -- Who Can Be a Guarantor? -- Products Based on Kafalah -- Back-to-Back Guarantees -- Conclusion -- Chapter 18 Wakalah, Hawalah, Ibra, and Rahn -- Wakalah -- Contemporary Application of Wakalah -- Hawalah -- Types of Hawalah -- Modern Use of the Contract of Hawalah -- Issues in Hawalah -- Hawalah and Bai al Dayn -- Ibra -- Disclosure of Ibra -- Rahn -- Can Financial Assets Be Used as a Pledge Item as Well? -- Conclusion -- Chapter 19 Shariah: Sources, Interpretation, and Implementation -- Modern-Day Ijtihad -- Whose Shariah Is It, Anyway? -- Conclusion -- Chapter 20 Islamic Asset Management and Shariah Screening -- Capital Markets -- IPO Stage -- Market Integrity -- Market Regulation -- Valuations -- Zero Sum Game -- The Role of Capital Markets in the Sphere of Islamic Finance -- Farmer Sukuk or Equity Notes -- Conclusion -- Chapter 21 Pricing, Income Distribution, and Risk Sharing in Islamic Banks -- Pricing of Islamic Financial Products -- Price versus Shariah -- Benchmark for Pricing -- Criticism on Pricing Models -- Profit Equalization Reserve -- Income Distribution -- Risk Sharing in Islamic Banks -- Conclusion -- Chapter 22 Sukuk and Rights of Sukuk Holders -- Rights of Lenders in Debt Financing -- Rights of Equity Holders -- Rights of Bondholders -- Use of Subsidiary Companies and Special-Purpose Vehicles -- How Sukuk Financing Could Work? -- Sale and Leaseback -- The Role of the SPV -- Other Sukuk Structures -- Istisna Sukuk -- Simple Sukuk -- Vanilla Sukuk -- Vanilla Sukuk with Toppings -- Vanilla Sukuk with Extra Toppings -- Sovereign Sukuk -- Conclusion -- Chapter 23 Risk Management for Islamic Banks -- Credit Risk.

Capital Adequacy -- Capital Adequacy Ratio -- Implications of CAR -- Risk Weightages -- Components of Risk Weightage Calculations -- Calculation of Risk Weightage -- Balance Sheet Analysis -- Credit Risk Mitigation -- Market Risk -- Scenario 1 -- Scenario 2 -- Scenario 3 -- Liquidity Risk -- Profit-Sharing Investment Account -- Conclusion -- References -- Chapter 24 Asset/Liability Management for Islamic Banks -- Gap Limit -- Spot Rates and Forward Rates -- Funding Scenarios -- Short-Term and Long-Term Rates -- Time Value of Money -- Conclusion -- Chapter 25 Takaful -- Contract of Agency -- Shariah Issues with Insurance -- Contract of Tabarru -- Product Menu -- General Takaful -- Automobile Takaful Plans -- Fire Takaful Plans -- Medical Takaful Plans -- Personal Accident Takaful Plans -- Personal Takaful Plans and Commercial Takaful Plans -- Liability Takaful Plans -- General Takaful Business Model -- Concepts Related to Takaful -- Financial Loss and Permissible Interest -- Multiple Plans -- No Loss Bonus -- Deductibles -- The Rights of the Fund over the Participant and the Rights of the Participant over the Fund -- Acts of God -- Calamities -- Frequency and Severity -- Pricing General Takaful Plans -- Measuring and Pricing Risk -- Risk Contribution -- Importance of Data -- Observations of General Takaful -- Family Takaful -- Family Takaful Process Flows -- Basic Accounting Entries for Takaful -- Takaful Operator Models -- Wakalah Model -- Modified Wakalah Model or Wakalah Mudharbah Model -- Distribution of Underwriting Surplus -- Conclusion -- Chapter 26 Pricing of Takaful Policies and Retakaful -- Case Study 1: Corporate Medical Takaful Plan under General Takaful -- Case Study 2: Corporate Medical Takaful Plan under General Takaful -- Method A -- Method B -- Case Study 3: Corporate Family Takaful Plan -- Detailed Mortality Table for Life Takaful.

Mortality Tables and Probability Calculations -- Risk Profiling -- Conclusion -- Afterword -- About the Authors -- Bibliography -- Index -- EULA.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.