Purpose – The purpose of this paper is to validate the concern that banks' increasing involvement in securitization activity restrains banks' lending, as well as their degree of risk tolerance. Theoretical frameworks claim that securitization reduces risk, hence decreasing banks' degree of...

Purpose – The purpose of this paper is to outline the principles of and legal risk faced by Islamic banking and suggest necessary steps to mitigate them. Design/methodology/approach – The paper examines ideal concept of Islamic banking and its practice. A range of publication is used,...

Purpose – The purpose of this paper is to describe the application of the Islamic financing method based on direct musharakah to the conventional capital asset pricing model yielding several interesting hypotheses. Design/methodology/approach – Theoretical methodology, with maximin criteria,...

Purpose – The paper was written to highlight the advantages of initiating economic integration among Muslim countries across the globe, drawing special lessons from Europe's experience; its successful economic integration and challenges which trailed the process. Design/methodology/approach –...

Purpose – The purpose of this paper is to provide an analysis of different sukuk structures from a financial perspective. This examination includes murabahah and ijara ‐based sukuk , the former offering a fixed return, and the latter, the most popular form of sukuk , a variable return. The...

Purpose – The purpose of this paper is to evaluate the performance of musharakah (equity participation) in terms of profitability and risk; to investigate musharakah management to recognise the obstacles and factors influencing decision‐making and to investigate the implications of using...

Purpose – The purpose of this paper is to elaborate and elucidate the experience of Malaysia in developing the Islamic financial system by explaining the different developments and methods that has been deployed since its inception in 1963 until now and how best these experience can be used in...

Purpose – The purpose of this paper is to explore the extent to which macroeconomic variables affect the Islamic stock market behavior in Malaysia in the post 1997 financial crisis period. Design/methodology/approach – The paper employs the latest estimation technique of autoregressive...