International Journal of Islamic Banking and Finance Research en-US (Editor-in-Chief) (Technical Support) Sun, 10 Apr 2022 00:00:00 +0000 OJS 60 PRINCIPLES AND METHODS FOR THE MANAGEMENT AND REGULATION OF FINANCES IN ISLAM: AN APPROACH TO MAULANA ASHRAF ALI THANAVI <p><em>In light of Maulana Ashraf Ali Thanavi’s discussions and deliberations, the purpose of this study is to analyze the principles and methods for financial management in Islam, with a focus on three essential areas of finance: obtaining wealth, securing wealth, and spending wealth. For this aim, several of M. Thānavī’s written works were searched, and his discussions on Islamic economic teachings were collected and expanded upon, and references to all primary and secondary sources were provided. The entire content is presented here in a systematic and academic manner, culminating in a five-point conclusion. The findings show that the state of contentment in economic and financial concerns is the result of complete trust in God, the Creator and the Provider of all creatures, as well as belief in the Day of Judgment. This state of contentment and confidence is attained through practical measures such as avoiding extravagance, squandering, and ostentation while adopting a balanced and moderate lifestyle. Similarly, the data reveal that adhering to business ethics outlined in the Sharī‘ah ensures a safe, peaceful, and prosperous individual and communal existence, and bring about abundant barakah (benediction). The current paper will thus serve as a compendium of Islamic economic and financial teachings, as well as related moral and ethical precepts.</em></p> <p><strong>JEL Classification Codes: </strong>A130, G41, G51.<em>&nbsp;</em></p> Burhan Rashid ##submission.copyrightStatement## Sun, 10 Apr 2022 00:00:00 +0000 THE IMPACT OF ISLAMIC FINANCING ON THE OPERATIONS OF SMES IN OMAN <p><em>The study investigates the relationship between the growth of Islamic banks &amp; financial institutions and the operational performance of small and medium enterprises located in Oman. The study employs qualitative method for data gathering. An effective questionnaire was created to gather the opinions of participants through semi-structured interviews. The sample consist of 40 employees of SMEs, 20 managers, and 2 financial experts. Thematic and descriptive analysis was used for analyzing data. Research findings revealed that owners/managers of SMEs and employees have effective knowledge regarding Islamic financing principles. Although the Islamic financing strategy is new in Oman, most participants including financial experts showed positive interest regarding its adaption. Further, findings indicated that there is a positive correlation between operations of Omani SMEs and Islamic financing. It is found that Islamic financing has benefitted SME operations as well as could play a significant role in the growth of SMEs and their operations in the future. This study helps policymakers and banks in understanding the scope of the growth in future. Thus, these banks can attract more SMEs and improve their growth rate. Finally, a comprehensive perception regarding workers, SME owners, and financial experts clarify willingness of using Islamic financing to get potential benefits in operations. </em></p> <p><strong>JEL Classification Codes: </strong>F65, D02.</p> Faiza Kiran ##submission.copyrightStatement## Sat, 30 Apr 2022 00:00:00 +0000 EFFICIENCY OF ISLAMIC BANKS: EVIDENCE FROM ISLAMIC WINDOWS OF CONVENTIONAL BANKS IN ETHIOPIA <p><em>The study examines the cost and technical efficiency of selected Islamic banking windows of conventional banks in Ethiopia during the period of 2016-2020. The parametric method, stochastic frontier approach (SFA) was employed to measure both cost and technical efficiency of the banks. The efficiency scores of the sampled banks can be measured based on their performance in utilizing inputs to successfully generate output during the study period. It gauges the service quality of the banks taking loans and deposits as well as operating income and expenses into consideration. The study uses time series data from four conventional banks which provide Islamic banking widow in Ethiopia. The statistical findings show that the conventional banks have fairly better technical efficiency individually and collectively; however, the cost efficiency scores indicate that the banks are not efficient enough in terms of minimizing costs for a given scale and mix of outputs. Similarly, the results of the stochastic technical frontier estimates uncovers that there is positive significant relationship between the input variables namely total deposits and total operating expenses and output variables namely total financing and total operating income. The outputs remain an essential contributor to the cost efficiency in Islamic windows conventional banks in Ethiopia.&nbsp; </em></p> <p><strong>JEL Classification Codes: </strong>G01, G21, G24.</p> Abdu Seid Ali, Suadiq Mehammed Hailu ##submission.copyrightStatement## Tue, 05 Jul 2022 14:12:51 +0000 THE INFAQ THEORY OF ISLAMIC PENSION <p><em>This paper applies an Islamic economic perspective to a major conundrum besetting the Islamic world, namely, how to provide financial support to expanding ageing Muslim populations. The paper employs a qualitative method involving descriptive and analytical methods whereby primary and secondary data are analyzed to inductively form a formula for an Islamic pension scheme. The results of this study suggest that despite the benefits and worldwide application of pension schemes, proponents of Islamic finance remain ill-prepared and slow to devise prototypes of workable Islamic pension models designed to address the needs of ageing Muslim populations. The vast majority of existing pension schemes fail to comply with the principles and values of Islamic law and ethics. As a generality, Muslim populations would prefer to remain without pension provision rather than endorse a religiously unlawful policy. The paper proposes that infaq as a key institution of Islamic moral economy, provides an ideal foundation for the development of an Islamic pension model that satisfies both legal and ethical Islamic stipulations. Keywords: Islamic pension, Islamic welfare, Muslim elderly, Muslim employees’ pensions, infaq and Islamic moral economy.</em></p> <p><strong>JEL Classification Codes: </strong>G32, F65, L66, L25, M41.</p> Ataollah Rahmani, Alija Avdukic, Faizal A. Manjoo ##submission.copyrightStatement## Tue, 05 Jul 2022 16:33:52 +0000