ABSTRACT
The phenomenal growth of Islamic finance in the last few decades has been accompanied by a host of interesting questions and challenges. One of the critical challenges is how Islamic financial institutions can be motivated to participate in the 'equity-like' profit-and-loss sharing (PLS) contracts. It is observed that Islamic banks are reluctant to participate in the pure PLS scheme which is manifested by the rising concentration of investment on murabaha or mark-up financing. This phenomenon has been the hotbed of academic criticism on the contemporary practice of Islamic banking. This book explains the 'murabaha syndrome' in light of the incentive provided by the current institutional framework and what are the changes required in the governance structure to mend this anomaly.
TABLE OF CONTENTS
part I|49 pages
Dilemmas and challenges on the prohibition of riba and gharar
chapter 1|17 pages
Heterodox vs. Islamic views on interest and uncertainty
part II|86 pages
Issues in Islamic equity finance and microfinance
chapter 4|16 pages
Altruism and reciprocity in Islamic equity fund
chapter 5|18 pages
Anatomy of Islamic venture capital
chapter 8|18 pages
An impact assessment of Islamic Saving–Loan and Financing Cooperatives in Indonesia
part III|49 pages
Dilemmas and challenges in governance structure