Purpose - The main objective of this paper is to highlight the main features of interest-free banking theory and practice in Pakistan over the last three decades. It explores the country-wide interest-free banking movement since its inception in 1980 to its demise in 2002, and the reasons for...

Purpose -The purpose of this study is to examine the factors which affect loss provision for loans and investment in Murabaha, Musharka, and Mudarabah for banks in the Gulf Cooperation Council (GCC) region. The effect of prior period earnings, legal and statutory reserves, size of the bank,...

Purpose -The purpose of this paper is to formalize a general equilibrium circular causation relationship model in the Islamic economic framework between wealth tax (Zakat), Islamic bank and the real economy. Design/methodology/approach - Mathematical modeling along with explanation. Findings...

Purpose -The purpose of this paper is to theoretically describe the role of Zakah as a vital tool of fiscal policy in achieving Pareto optimality. Design/methodology/approach - The paper sets a general equilibrium model that describes the long-run convergence to a Pareto optimal allocation in a...

Purpose - The purpose of this paper is to study the differences or variance in the yields of Islamic and conventional bank deposits and capital, respectively, in view of their contractual differences, namely the former which is based on equity and the latter on debt. Design/methodology/approach...

Purpose -The main objective of this paper is to highlight the unprecedented growth of Islamic banking and finance in the contemporary finance world. It captures the advancements of Islamic banking and finance industry across the tools, systems, sectors, markets and over 75 countries from Africa,...

Purpose - The purpose of this paper is to focus on various modes of Islamic finance and examines their risk and other characteristics by conducting a selective literature review. Design/methodology/approach - Due to the Islamic prohibition of interest and in compliance with injunctions on...