https://www.cribfb.com/journal/index.php/ijibfr/issue/feed International Journal of Islamic Banking and Finance Research 2019-06-30T21:21:51+06:00 Managing Editor info.ijibfr@cribfb.com Open Journal Systems <p><img class="shrinkToFit" style="display: block; margin-left: auto; margin-right: auto;" src="https://www.cribfb.com/journal/public/journals/11/cover_issue_64_en_US.jpg" alt="https://www.cribfb.com/journal/public/journals/11/cover_issue_64_en_US.jpg" width="442" height="654"></p> <p style="text-align: justify;"><em><strong>International Journal of Islamic Banking and Finance Research (IJIBFR)</strong></em> is a refereed international journal which is published semiannually. The journal aims are to publish the papers that provide current issues within Islamic finance and banking.</p> https://www.cribfb.com/journal/index.php/ijibfr/article/view/269 Islamic Monetary Policy and Rastin Swap Bonds 2019-06-30T21:04:37+06:00 Bijan Bidabad bijan@bidabad.com <p><em>Purpose:</em> This paper aims to examine monetary instruments in Islamic central banking framework. As a conclusion, to revive Islamic monetary policy, we should provide some public equity-based instrument as a necessary replacement for conventional bonds and treasury bills to activate non-usury open market operations.</p> <p><em>Design:</em> We define a type of new negotiable bond as: “Rastin Swap Bonds (RSBs)”, which is based on swapping money between two persons for two different periods.</p> <p><em>Findings:</em> RSB is a financial paper that observes the right for the lender to borrow an equal amount to his lending from the borrower. Four types of RSBs in domestic money and foreign currency are defined, and their Sharia allowances and monetary, fiscal, and financial effects are evaluated.</p> <p><em>Research limitations:</em> This bond is a novel design, and it is required to be more elaborated for further practical development and adjustment.</p> <p><em>Practical implications:</em> Islamic central banking is not different from conventional central banking as a whole, but the role of an Islamic central bank in conducting monetary policy is restricted to use interest-free monetary instruments in an environment that commercial banks are obliged to implement non-usury banking operations.</p> <p><em>Social implications:</em> Islamic financial instruments should be usury-free and efficient in applying monetary, fiscal, and financial policies at different levels of the central bank, government and commercial banks and non-banking money and financial institutions. Rastin Swap Bond will serve as an important instrument for resource mobilization and will be a primary vehicle for the development of the Islamic capital market and central banking operations.</p> <p><em>Originality/value</em><strong>: </strong>Conventional interest-bearing bonds are not allowed in Islamic central banking. This restriction mostly distinguishes Islamic central banking from the conventional one in implementing monetary policy.</p> <p><strong>Article Type</strong>: Technical paper</p> <p><strong>JEL:</strong> G21, G28, H81</p> <p><strong><a class="obj_galley_link file" href="https://www.cribfb.com/journal/index.php/ijibfr/article/view/269/392"></a></strong></p> 2019-05-25T22:55:06+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijibfr/article/view/270 Rastin Swap Deposit (RSD): A Financial Account of Rastin Banking 2019-06-30T21:18:58+06:00 Bijan Bidabad bijan@bidabad.com <p>This paper introduces Rastin Swap Deposit account as a new banking deposit account which is interest-free and is based on Swap Contract in Rastin Banking. In this depositing by opening the deposit, the depositor is entitled to use an interest-free loan to the amount and duration that his resources have been being deposited and then return the money back to the bank. Depositor and bank agree that a combination of money and duration be selected in such a way that the products of amount and duration in both operations of depositing and loaning be the same. From the time of depositing to the first maturity (the date that depositor requests loan), the depositor is lender and bank is borrower; and from the time of the first maturity to second maturity (the date that depositor returns the money back to the bank) depositor is borrower and bank is a lender. Rastin Swap Deposit (RSD) can be issued in both local and foreign currencies.</p> <p><strong>JEL:</strong> E43, E44, E52, E58, E62, E63</p> <p><strong><a class="obj_galley_link file" href="https://www.cribfb.com/journal/index.php/ijibfr/article/view/270/394"></a></strong></p> 2019-05-25T23:15:43+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijibfr/article/view/271 Rastin Swap Card (RSC): A Financial Instrument of Rastin Banking 2019-06-30T21:20:00+06:00 Bijan Bidabad bijan@bidabad.com <p>Rastin Swap Card is defined in Rastin Banking. This card is issued based on the Swap Contract in Rastin Banking or principle of sovereignty rights of contracts. In Rastin Swap Card there are two periods. In the first period card issuer lends money to the cardholder, and in the second period borrows money from card holder instead. At the first stage card issuer credits a certain amount of money for specific time duration to the card of cardholder and requests the cardholder to deposit the same amount for the same period at the end of the cited time duration (first maturity) in the issuer's deposit account. Card issuer and cardholder can agree for a combination of amount and duration for which the product of them (amount by the duration) be equal for both operations of lending money by the issuer and depositing by the cardholder.Rastin Swap Card (RSD) has no interest rate and is different from conventional debit and credit cards, but considering the ICT-based systems, RSD is being processed and managed through electronic banking systems. Rastin Swap Card can be issued in both local and foreign currencies. Bank receives a fee by offering Rastin Swap Card service.</p> <p><strong>JEL:</strong> E43, E44, E52, E58, E62, E63</p> <p><a href="https://www.cribfb.com/journal/index.php/ijibfr/article/view/271"><strong></strong></a></p> <p>&nbsp;</p> 2019-05-25T23:35:17+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijibfr/article/view/272 Assets and Liabilities Management in Islamic Banking 2019-06-30T21:20:42+06:00 Bijan Bidabad bijan@bidabad.com Mahmoud Allahyarifard allahyarifard@gmail.com <p><em>Purpose:</em> In this paper, we are going to consider assets and liabilities management (ALM) structure and instrument in Islamic banking. Since in Islamic banking depositors take partnership in benefits of the bank, so Islamic banking follows to maximizing benefits of beneficiaries and among them depositors. Therefore, there are dissimilarities between ALM approaches in Islamic banking and conventional banking. First, this dissimilarity comes from differences in the accounting system in Islamic banking in comparison to conventional banking. Secondly, usury illegalness and its related jurisprudence specifications indicate that time is not the solely the effective factor on increasing equity (deposited capital) return; but profit and loss sharing resulted from investment in the real economy sector is the essential base in monetary transactions. These two important factors are considerable factors in Islamic ALM.</p> <p><em>Design/methodology/approach:</em> we consider influence specifications of these factors in two banking approaches for creating Economic Value Added (EVA).</p> <p><em>Findings:</em> Comparison of financial indices for the two types of banking leads us that Islamic banking is more efficient than conventional banking.</p> <p><a class="obj_galley_link file" href="https://www.cribfb.com/journal/index.php/ijibfr/article/view/272/398"></a></p> 2019-05-26T21:51:02+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijibfr/article/view/274 IT Role in Fulfillment of Profit & Loss Sharing (PLS) Mechanism 2019-06-30T21:21:51+06:00 Bijan Bidabad bijan@bidabad.com Mahmoud Allahyarifard allahyarifard@gmail.com <p>In this paper, we are going to introduce a new IT master solution to improve non-usury banking performance. All divine religions emphasize on usury prohibition. It is concluded that with some IT solutions, it may be possible to fulfill the worldly requirement by use of IT systems without any incredulity. Since depositors are&nbsp;&nbsp; shareholders of Non-Usury Bank Corporation (NU Bank Co), therefore integrated information systems can provide suitable infrastructure for transactions recording and management done by all participants' chains; and the end of process the yields of investment capital of depositors that invest in real economy can be distributed by safe delivery channels such as branches, ATM, WEB, Meaningful WEB. IT (as BPR, ERP, CRM, SCM, MES, MEX, HRM, WFM) that use single and integrated data warehouses) accompanying with standardization in all processes not only prepare PLS mechanism as main difference between conventional and non-usury banking but also simplify risk management and decline operational risk in comparison with conventional non-usury banking. Foundation of real non-usury banking can be based on an integrated IT system that links depositors, NU Bank Co, business partners, investors, stock exchange agencies, social security organization, certificate authorities (CA). Therefore, all related sectors may access the working flow of capital; IT processes, investment returns, and this causes stability in financial markets and achieve social justice establishment. In this paper, we are going to find a solution to this question: is it possible to connect depositors, bank, and investors in an integrated IT system to bring out PLS mechanism? Accordingly, we use a new kind of bank named by "Non-Usury Bank Corporation (Nu bank Co)" to fulfill the PLS criterion. This kind of non-usury bank will be capable of being established in different commercial law systems around the world. Thus, it will provide a suitable environment to automate non-usury banking operations that connect profits of depositors, bank, and loaners all together by using financial automatic communication channels.</p> <p><span id="cell-400-label" class="gridCellContainer"><span class="label"><a href="https://www.cribfb.com/journal/index.php/ijibfr/article/view/274"></a></span></span></p> 2019-05-27T19:29:42+06:00 ##submission.copyrightStatement##