Template-Type: ReDIF-Article 1.0 Author-Name: I.E. Nikolaou Author-X-Name-First: I.E. Author-X-Name-Last: Nikolaou Author-Name: A.N. Yannacopoulos Author-X-Name-First: A.N. Author-X-Name-Last: Yannacopoulos Title: The effect of environmental accounting on financial risk management of firms via insurance Abstract: Nowadays, firms disclose environmental information through environmental reports. These disclosures are necessary for insurance companies to face financial losses related to environmental incidents, in an attempt to achieve fair pricing for corporate insurance contracts, to evade any future financial risks and, eventually, to achieve efficient risk management. It is the aim of this paper to investigate, with the use of a probabilistic model, how these disclosures assist insurance companies to determine fairly insurance premia and as a consequence allow for the more efficient risk management of the firm. Journal: Int. J. of Monetary Economics and Finance Pages: 1-15 Issue: 1 Volume: 2 Year: 2009 Keywords: environmental accounting; environmental disclosures; insurance companies; environmental management; financial risk management; environmental reporting; probabilistic modelling; insurance premiums. File-URL: http://www.inderscience.com/link.php?id=23062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Marcos Alvarez-Diaz Author-X-Name-First: Marcos Author-X-Name-Last: Alvarez-Diaz Title: Evidence against the Spanish stock market efficiency using the Nearest Neighbour method and a cluster forecasting technique Abstract: It is generally accepted that financial markets behave in a complex and unpredictable way, corroborating the Efficient Market Hypothesis. According to this hypothesis, investors cannot accurately predict future financial returns based on the information available. In this paper, we analyse the possibility of predicting the directional evolution of the general Spanish financial indices (IBEX 35 and IBEX Complementario). We present a novel forecasting method based on clustering techniques, and we compare it with a more conventional forecasting technique: the Nearest Neighbour (NN) method. The results suggest that it is possible to make accurate predictions in the case of the less liquid index (IBEX Complementario). Journal: Int. J. of Monetary Economics and Finance Pages: 16-25 Issue: 1 Volume: 2 Year: 2009 Keywords: stock market efficiency; nonlinear forecasting time series; cluster forecasting method; nearest neighbour method; Spain; stock markets; financial indices. File-URL: http://www.inderscience.com/link.php?id=23063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:16-25 Template-Type: ReDIF-Article 1.0 Author-Name: Omar Masood Author-X-Name-First: Omar Author-X-Name-Last: Masood Author-Name: Chris Stewart Author-X-Name-First: Chris Author-X-Name-Last: Stewart Author-Name: Naif Sultan Author-X-Name-First: Naif Author-X-Name-Last: Sultan Title: Determinants of Turkish fund managers' performance Abstract: Using original survey data collected by the authors in 2005 we investigate the determinants of Turkish fund managers' performance as measured by the number of clients that a fund manager has, the number of investment funds that the manager is responsible for and the size of the manager's portfolio. All three measures of Turkish fund manager performance systematically vary with fund manager characteristics. This is consistent with Chevalier and Ellison's (1999) finding for the USA that some managers are better than others. Further, the number of training courses attended by a manager and years of experience are found to positively influence all three measures of performance. Journal: Int. J. of Monetary Economics and Finance Pages: 26-43 Issue: 1 Volume: 2 Year: 2009 Keywords: Turkish fund managers; fund manager performance; ordered choice models; Turkey; investment funds; portfolio size; client numbers; training courses; performance measures. File-URL: http://www.inderscience.com/link.php?id=23064 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:26-43 Template-Type: ReDIF-Article 1.0 Author-Name: Athanasios Koulakiotis Author-X-Name-First: Athanasios Author-X-Name-Last: Koulakiotis Author-Name: Apostolos Dasilas Author-X-Name-First: Apostolos Author-X-Name-Last: Dasilas Title: Measuring the forecasting accuracy of models: evidence from industrialised countries Abstract: This paper uses the approach suggested by Akrigay (1989), Tse and Tung (1992) and Dimson and Marsh (1990) to examine the forecasting accuracy of stock price index models for industrialised markets. The focus of this paper is to compare the Mean Absolute Percentage Error (MAPE) of three models, that is, the Random Walk model, the Single Exponential Smoothing model and the Conditional Heteroskedastic model with the MAPE of the benchmark Naive Forecast 1 case. We do not evidence that a single model to provide better forecasting accuracy results compared to other models. Journal: Int. J. of Monetary Economics and Finance Pages: 44-57 Issue: 1 Volume: 2 Year: 2009 Keywords: forecasting accuracy; stock price returns; industrialised countries; random walk; stock price index models; single exponential smoothing; conditional heteroskedastic. File-URL: http://www.inderscience.com/link.php?id=23065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:44-57 Template-Type: ReDIF-Article 1.0 Author-Name: Jesse Russell Author-X-Name-First: Jesse Author-X-Name-Last: Russell Title: Chaos and order in exchange rates Abstract: This paper asks what accounts for differing levels of exchange rate variance among countries over time. It suggests that the type of political system (i.e., number of policy veto players) is a determinant of policy outcomes in foreign exchange markets. If exchange rate decisions are made by larger groups of actors, we are more likely to witness greater chaos and thus variability in exchange rate outcomes. When we recognise that chaos is part of the background reality of exchange rates, we are more likely to be able to see the order organising it all. Journal: Int. J. of Monetary Economics and Finance Pages: 58-70 Issue: 1 Volume: 2 Year: 2009 Keywords: exchange rates; veto players; chaos; volatility; political systems; foreign exchange markets. File-URL: http://www.inderscience.com/link.php?id=23066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:58-70 Template-Type: ReDIF-Article 1.0 Author-Name: Sathya Swaroop Debasish Author-X-Name-First: Sathya Swaroop Author-X-Name-Last: Debasish Title: Effect of futures trading on the stability of stock index returns: a case of BSE Sensex Abstract: This paper attempts an to investigate the effect of futures trading on the stability of returns on BSE Sensex by using daily observations from January 1996 to December 2007. Three statistical tests namely, Kolmogorov Smirnov 2-sample test, Wilcoxon Rank Sum test and Goldfeld Quandt tests are used. The study found that higher volatility of daily returns in post-futures period than in the pre-futures period but the volatility of monthly returns remained unchanged. Apart from the months May 2004 and May 2006, there is no evidence that monthly BSE Sensex volatility has increased after inception of the Futures trading. Journal: Int. J. of Monetary Economics and Finance Pages: 71-89 Issue: 1 Volume: 2 Year: 2009 Keywords: stock markets; BSE Sensex; India; conditional volatility; futures trading; parametric tests; stability; stock index returns; Bombay Stock Exchange. File-URL: http://www.inderscience.com/link.php?id=23067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:1:p:71-89 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Author-Name: Bruno S. Sergi Author-X-Name-First: Bruno S. Author-X-Name-Last: Sergi Title: Analysis of the CZK/USD exchange rate: a comparison of four major models Abstract: This paper studies the behaviour of the CZK/USD exchange rate based on four major models. Using the Mean Absolute Percent Error (MAPE) as a criterion, the IS-MP model performs best, followed by the monetary model, the Purchasing Power Parity (PPP) model using the relative Producer Price Index (PPI), the PPP model using the relative Consumer Price Index (CPI), and the Uncovered Interest Parity (UIP) model. The widely used log–log form in the PPP model with the relative PPI can be rejected at the 5% level over the period 1993.Q1–2008.Q2. The insignificant coefficient or incorrect sign in each of the models may pose some challenges to policymakers when these models are applied. Journal: Int. J. of Monetary Economics and Finance Pages: 91-102 Issue: 2 Volume: 2 Year: 2009 Keywords: Czech economy; PPP; purchasing power parity; UIP; uncovered interest parity; IS-MP model; monetary policy function; Czech Republic; USA; United States; exchange rates. File-URL: http://www.inderscience.com/link.php?id=24833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:91-102 Template-Type: ReDIF-Article 1.0 Author-Name: Osmani Teixeira De Carvalho Guillen Author-X-Name-First: Osmani Teixeira De Carvalho Author-X-Name-Last: Guillen Author-Name: Benjamin M. Tabak Author-X-Name-First: Benjamin M. Author-X-Name-Last: Tabak Title: Characterising the Brazilian term structure of interest rates Abstract: This paper studies the Brazilian term structure of interest rates and characterises how the term premia have changed over time. We employ a Kalman filter approach, which is extended to take into account regime switches and overlapping forecasts errors. Empirical evidence suggests that term premia depend on international global liquidity and domestic factors such as the composition of public debt and inflation volatility. These results provide important guidance for the formulation of fiscal and monetary policies. Journal: Int. J. of Monetary Economics and Finance Pages: 103-114 Issue: 2 Volume: 2 Year: 2009 Keywords: Brazil; term structure; interest rates; term premia; fiscal policy; monetary policy; regime switching; Kalman filter. File-URL: http://www.inderscience.com/link.php?id=24834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:103-114 Template-Type: ReDIF-Article 1.0 Author-Name: Ramaprasad Bhar Author-X-Name-First: Ramaprasad Author-X-Name-Last: Bhar Author-Name: Carl Chiarella Author-X-Name-First: Carl Author-X-Name-Last: Chiarella Title: Inference on forward exchange rate risk premium: reviewing signal extraction methods Abstract: The existence of risk premium is thought to be the reason why forward exchange rate is not an unbiased predictor of future spot exchange rate. In this paper we review two methodologies for inferring this unobserved risk premium based upon signal extraction mechanism. One approach relies on the theory of derivatives pricing that relates historical and risk neutral measures via market price of risk. The other approach specifies the risk premium in the historical measure directly. We compare these two methods in predicting future spot exchange rates and contrast these with that of random walk forecast. Journal: Int. J. of Monetary Economics and Finance Pages: 115-125 Issue: 2 Volume: 2 Year: 2009 Keywords: forward exchange rates; risk premium; signal extraction; market price of risk; future spot exchange rates; random walk forecast. File-URL: http://www.inderscience.com/link.php?id=24835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:115-125 Template-Type: ReDIF-Article 1.0 Author-Name: Thouraya Boujelbene Dammak Author-X-Name-First: Thouraya Boujelbene Author-X-Name-Last: Dammak Author-Name: Younes Boujelbene Author-X-Name-First: Younes Author-X-Name-Last: Boujelbene Title: The nature of the Phillips curve in Tunisia: new empirical evidence Abstract: The debate about the theoretical foundations of the nature of the relationship between inflation and unemployment has been the subject matter of multiple reinterpretations involving most of the modern macroeconomic theories. The lack of research that proved the existence of the Phillips curve in the developing countries accounts for the objective of this study. In fact, our paper examines Tunisia as a case study to empirically prove the relation between inflation rate and unemployment rate. Our findings provide evidence about the existence of a long run trade-off between the unemployment rate and the inflation rate in Tunisia. Journal: Int. J. of Monetary Economics and Finance Pages: 126-143 Issue: 2 Volume: 2 Year: 2009 Keywords: Phillips curve; expected inflation rate; labour productivity; productivity growth rate; cointegration; Tunisia; unemployment rate; developing countries. File-URL: http://www.inderscience.com/link.php?id=24836 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:126-143 Template-Type: ReDIF-Article 1.0 Author-Name: Samer A.M. Al-Rjoub Author-X-Name-First: Samer A.M. Author-X-Name-Last: Al-Rjoub Author-Name: Sawsan Abutabenjeh Author-X-Name-First: Sawsan Author-X-Name-Last: Abutabenjeh Title: Price limits and stock returns volatility in Jordanian banks Abstract: The main objective of the study is to show whether price limits for commercial banks in the ASE have the positive effect on the market return volatility for the period 1999-2005. GARCH and EGARCH models are used to generate variance series from bank returns. Empirical results show that there is a significant positive relationship between total number of limit hits and bank returns volatility when it is generated from GARCH model. The price limits policy in ASE does not have their positive effect in reducing bank return volatility, a result consistent with Chen (1993) and Phylaktis et al. (1999). Journal: Int. J. of Monetary Economics and Finance Pages: 144-165 Issue: 2 Volume: 2 Year: 2009 Keywords: price limits; volatility; GARCH models; EGARCH models; stock returns; Jordan; commercial banks; bank returns. File-URL: http://www.inderscience.com/link.php?id=24837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:144-165 Template-Type: ReDIF-Article 1.0 Author-Name: Min Lu Author-X-Name-First: Min Author-X-Name-Last: Lu Title: Current account dynamics and optimal monetary policy in a small-open economy Abstract: This paper studies a small open economy with two sectors. In a perfect foresight, rational expectation general equilibrium model, with sticky prices in the non-traded goods sector, the current account responses to monetary shocks depend on the elasticity of substitution between consumption and risk aversion, the country's initial net foreign asset position, and the degree of monopolistic competition. The current account reacts quite efficiently to technological shocks in a small open economy. The welfare gain for households from adopting optimal monetary policy in contrast to constant money growth rule is quantitatively small. Journal: Int. J. of Monetary Economics and Finance Pages: 166-193 Issue: 2 Volume: 2 Year: 2009 Keywords: open economy macroeconomics; current account dynamics; optimal monetary policy; small open economy. File-URL: http://www.inderscience.com/link.php?id=24838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:166-193 Template-Type: ReDIF-Article 1.0 Author-Name: Moid U. Ahmad Author-X-Name-First: Moid U. Author-X-Name-Last: Ahmad Author-Name: Athar Mahmood Author-X-Name-First: Athar Author-X-Name-Last: Mahmood Title: Zakat fund – concept and perspective Abstract: Islam, the Holy Quran and the Hadith lays great emphasis on Zakah (Zakat) as a social tool to bridge the differences between the rich Muslims and poor Muslims. This research paper underlines the importance of Zakah as a tool for poverty alleviation. It discusses the fundamental concept of Zakah, its calculation methodology and how it is levied. The paper suggests a novel concept of the Zakah Fund, which can be implemented as a tool of poverty alleviation. Also, the paper tries to analyse the viability of the concept by conducting a relevant survey, the conclusions from which can be used to enhance the understanding of the concept and its utility. Journal: Int. J. of Monetary Economics and Finance Pages: 197-205 Issue: 3/4 Volume: 2 Year: 2009 Keywords: development economics; Zakat; Islamic finance; Zakah Fund; poverty alleviation. File-URL: http://www.inderscience.com/link.php?id=29058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:197-205 Template-Type: ReDIF-Article 1.0 Author-Name: Omar Masood Author-X-Name-First: Omar Author-X-Name-Last: Masood Author-Name: Jamel E. Chichti Author-X-Name-First: Jamel E. Author-X-Name-Last: Chichti Author-Name: Walid Mansour Author-X-Name-First: Walid Author-X-Name-Last: Mansour Author-Name: Muzafar Iqbal Author-X-Name-First: Muzafar Author-X-Name-Last: Iqbal Title: "Islamic bank of Britain" case study analysis Abstract: The Islamic banking system is expected to face strong competition not only from the Islamic banks but also from well-established conventional banks offering Islamic products and services. In this study, we focus on the 'Islamic Bank of Britain' the only indigenous bank of its kind in UK. The attempt is made to assess the degree of customer awareness, satisfaction as well as selection criteria. A sample of 200 respondents took part in this study. The responses where shows a certain degree of satisfaction, there few respondents also have expressed their dissatisfaction with some of the Islamic bank's services. Journal: Int. J. of Monetary Economics and Finance Pages: 206-220 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic banking; customer requirements; customer satisfaction; Islamic Bank of Britain; services marketing; Islamic finance; UK; United Kingdom. File-URL: http://www.inderscience.com/link.php?id=29059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:206-220 Template-Type: ReDIF-Article 1.0 Author-Name: Azman Mohd Noor Author-X-Name-First: Azman Mohd Author-X-Name-Last: Noor Author-Name: Rafidah Mohd Azli Author-X-Name-First: Rafidah Mohd Author-X-Name-Last: Azli Title: A review of SharENah compliant instruments for Islamic credit cards as adopted by Malaysian Financial Institutions Abstract: The Islamic credit card, better known as Credit Card-i, is one of the alternative banking products introduced by Islamic Financial Institutions in Malaysia to substitute for the conventional credit card. This paper aims at reviewing the structures and instruments applied by Islamic Financial Institutions in Malaysia from Shariah Compliance perspectives. The method used is descriptive and positive analytical criticism which aims at improving the existing structure. Journal: Int. J. of Monetary Economics and Finance Pages: 221-238 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic credit cards; credit card structures; Islamic banking; Islamic finance; Shariah compliance; Malaysia. File-URL: http://www.inderscience.com/link.php?id=29060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:221-238 Template-Type: ReDIF-Article 1.0 Author-Name: Salina H. Kassim Author-X-Name-First: Salina H. Author-X-Name-Last: Kassim Author-Name: M. Shabri Abd. Majid Author-X-Name-First: M. Shabri Abd. Author-X-Name-Last: Majid Title: Sensitivity of the Islamic and conventional banks to monetary policy changes: the case of Malaysia Abstract: This study intends to determine the impact of monetary policy changes on Islamic banks vis-a-vis conventional banks. In achieving this, the study explores the dynamic inter-relationships between deposits and loans of the Islamic and conventional banks with monetary policy variable using two major tests. First, the Auto-Regressive Distributed Lag (ARDL) model is used to examine the long-run relationship among the variables. Second, the Vector Error-Correction Model (VECM) is adopted to explore the short- and long-run dynamics between the variables. The study focuses on Malaysian data covering the period from January 1998 to December 2006. The study finds that the Islamic banks' balance sheet items are relatively more sensitive to monetary policy changes, compared to the conventional banks balance sheet items. This implies that the impact of monetary policy is more de-stabilising on the Islamic banks than on the conventional banks. Journal: Int. J. of Monetary Economics and Finance Pages: 239-253 Issue: 3/4 Volume: 2 Year: 2009 Keywords: monetary policy; Islamic banks; conventional banks; ARDL; auto-regressive distributed lag model; VECM; vector error correction model; multivariate causality; Islamic finance; Malaysia. File-URL: http://www.inderscience.com/link.php?id=29061 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:239-253 Template-Type: ReDIF-Article 1.0 Author-Name: Andreas A. Jobst Author-X-Name-First: Andreas A. Author-X-Name-Last: Jobst Title: Islamic derivatives Abstract: Financial globalisation facilitates greater diversification of investment and enables risk to be transferred across national financial systems through derivatives. The paper explains the current use of accepted risk transfer mechanisms in Islamic finance and explores the validity of derivatives consistent with Shari'ah law. After evaluating key issues regarding the religious permissibility of derivatives, the paper summarises basic principles for the use of derivatives and assesses the future prospects of derivatives in Islamic finance. Journal: Int. J. of Monetary Economics and Finance Pages: 254-260 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic derivatives; salam; qabd; gharar; maslahah; Islamic finance; risk transfer; Islamic risk management; Shariah law. File-URL: http://www.inderscience.com/link.php?id=29062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:254-260 Template-Type: ReDIF-Article 1.0 Author-Name: Omar Masood Author-X-Name-First: Omar Author-X-Name-Last: Masood Author-Name: Bora Aktan Author-X-Name-First: Bora Author-X-Name-Last: Aktan Author-Name: Qazi Awais Amin Author-X-Name-First: Qazi Awais Author-X-Name-Last: Amin Title: Islamic banking: a study of customer satisfaction and preferences in non-Islamic countries Abstract: The analysis of their responses revealed a certain degree of satisfaction of many of the Islamic bank's facilities and products. The respondents expressed their dissatisfaction with some of the Islamic bank's services. Although the respondents indicated that they are aware of a number of specific Islamic financial products like Murabaha, Musharaka and Mudaraba, they show that they do not deal with them. Journal: Int. J. of Monetary Economics and Finance Pages: 261-285 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic banking; customer requirements; customer satisfaction; Islamic finance; customer preferences; Murabaha; Musharaka; Mudaraba. File-URL: http://www.inderscience.com/link.php?id=29063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:261-285 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmet Suayb Gundogdu Author-X-Name-First: Ahmet Suayb Author-X-Name-Last: Gundogdu Title: 2-Step Murabaha as an alternative resource mobilisation tool for Islamic banks in the context of international trade Abstract: This paper aims to show how to mobilise resources through Islamic financial instruments in the context of international trade. Throughout the paper there would be five entities namely, Bank-A, Bank-B, Bank-C, Importer and Exporter. Bank-A and Bank-B are recognised financial institutions and they operate internationally while the operations of Bank-C are limited to domestic market. It is Bank-B which mobilises resources from Bank-A through Mudaraba and alternative Reverse 2-Step Murabaha agreements. The details of disbursement for line of financing provided by Bank-B to Local Bank-C through 2-Step Murabaha Agreement are also provided for Letter of Credit and Documentary Collection settlements. Journal: Int. J. of Monetary Economics and Finance Pages: 286-301 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Mudaraba; resource mobilisation; Islamic banking; documentary collection; Islamic finance; international trade. File-URL: http://www.inderscience.com/link.php?id=29064 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:286-301 Template-Type: ReDIF-Article 1.0 Author-Name: Burhan Ali Shah Author-X-Name-First: Burhan Ali Author-X-Name-Last: Shah Author-Name: Ghulam Shabbir Khan Niazi Author-X-Name-First: Ghulam Shabbir Khan Author-X-Name-Last: Niazi Title: Contemporary practices of Islamic banks in Pakistan: a critical appraisal Abstract: Pakistan has experienced tremendous growth in Islamic banks in recent years, particularly after the Supreme Court decision of 2002. This research study was focused on the actual practices of full-fledged Islamic banks working in Pakistan. It reviewed and analysed the deposits and financing (consumer) products of these banks and found certain areas for improvement in order to be in compliance with the Sharia requirements. The study suggested numerous recommendations for this purpose. Journal: Int. J. of Monetary Economics and Finance Pages: 302-316 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Mudaraba; Mudarib; Rabb ul mal; Murabaha; diminishing Musharaka; Islamic finance; Islamic banking; Pakistan; Shariah law. File-URL: http://www.inderscience.com/link.php?id=29065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:302-316 Template-Type: ReDIF-Article 1.0 Author-Name: Zuriah Abdul Rahman Author-X-Name-First: Zuriah Abdul Author-X-Name-Last: Rahman Author-Name: Rosylin Mohd. Yusof Author-X-Name-First: Rosylin Mohd. Author-X-Name-Last: Yusof Author-Name: M. Shabri Abd. Majid Author-X-Name-First: M. Shabri Abd. Author-X-Name-Last: Majid Title: The role of goods, money and securities markets in promoting family takaful in Malaysia Abstract: In line with the government's policy to promote Malaysia as an international hub for Islamic banking and finance, the dynamic effects of goods, money and securities markets on the development of family takaful (Islamic life insurance) in the country during the period from 1999 : Q1 to 2006 : Q4 are empirically examined. Specifically, it seeks to explore the short- and long-run dynamics and the causalities between takaful performance and the goods market, money market, and securities market. The findings indicate that, the goods market is the most significant market in promoting family takaful in Malaysia. This implies that, the government's effort has been successful, thus far. Journal: Int. J. of Monetary Economics and Finance Pages: 317-335 Issue: 3/4 Volume: 2 Year: 2009 Keywords: family takaful; goods market; money market; securities markets; ARDL; autoregressive distributed lag; Malaysia; Islamic banking; Islamic finance; Islamic life insurance. File-URL: http://www.inderscience.com/link.php?id=29066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:317-335 Template-Type: ReDIF-Article 1.0 Author-Name: Bora Aktan Author-X-Name-First: Bora Author-X-Name-Last: Aktan Author-Name: Omar Masood Author-X-Name-First: Omar Author-X-Name-Last: Masood Author-Name: Muzafar Iqbal Author-X-Name-First: Muzafar Author-X-Name-Last: Iqbal Title: Development and future prospects of Islamic banking in Bangladesh Abstract: The objective of this research is to provide a brief analysis of the performance of Islamic banks in Bangladesh. The Islamic banks in Bangladesh continued to show strong growth since its inception in 1983 to June 2007, Islamic banks maintained and achieved strong position in the key areas like capital adequacy, liquidity, assets quality, management and earnings. The research is based on primary data, which has been collected by giving out a questionnaire to the employees of four selected banks at random basis. A sample of 200 respondents took part in this study. Journal: Int. J. of Monetary Economics and Finance Pages: 336-347 Issue: 3/4 Volume: 2 Year: 2009 Keywords: employee satisfaction; Islamic banking; Bangladesh; Islamic finance; performance evaluation. File-URL: http://www.inderscience.com/link.php?id=29067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:336-347 Template-Type: ReDIF-Article 1.0 Author-Name: Andreas A. Jobst Author-X-Name-First: Andreas A. Author-X-Name-Last: Jobst Title: Islamic securitisation: An ethical remedy to incentive problems? Abstract: Islamic securitisation in the form of sukuk has grown into a notable segment of global structured finance over the recent past. This paper surveys the unique structural features of the sukuk market and assesses the resilience of shari'ah compliance to the adverse effects of conflicts of interest that became apparent in the US subprime mortgage crisis and the subsequent fallout in global financial markets. This examination also considers recent regulatory changes to the definition of sukuk and current policy considerations of alternative forms of capital-market based refinancing techniques, such as covered mortgage bonds, and the way they relate to Islamic securitisation. The paper concludes with a brief outlook on future challenges and developments in the sukuk market. Journal: Int. J. of Monetary Economics and Finance Pages: 348-365 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic finance; Islamic securitisation; structured finance; asset-backed; asset-based; sukuk market; ijara; shariah compliance; covered bonds; risk management; ethics; regulatory changes; refinancing; mortgage bonds. File-URL: http://www.inderscience.com/link.php?id=29068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:348-365 Template-Type: ReDIF-Article 1.0 Author-Name: Omar Masood Author-X-Name-First: Omar Author-X-Name-Last: Masood Author-Name: Jamel E. Chichti Author-X-Name-First: Jamel E. Author-X-Name-Last: Chichti Author-Name: Walid Mansour Author-X-Name-First: Walid Author-X-Name-Last: Mansour Author-Name: Qazi Awais Amin Author-X-Name-First: Qazi Awais Author-X-Name-Last: Amin Title: Role of Islamic mortgage in UK Abstract: Mortgage is considered a major determinant factor not only to the UK, but western economies as well. Therefore, we thought it fit to conduct an empirical study on Islamic mortgage in UK. In this paper we attempt to study and elaborate principles behind overall Islamic banking system whereas the main focus is remain with Role of Islamic mortgage in UK. This paper gives a preliminary empirical assessment of role of Shariah board and corporate governance with reference to UK. This study also sought that whether Islamic banking is based on Islamic economic principles or just a replica of conventional banking. Journal: Int. J. of Monetary Economics and Finance Pages: 366-383 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic mortgages; Mudharabah; Wadiah; Musharakah; Ijarah; Shariah; Riba; Islamic finance; UK; United Kingdom; corporate governance. File-URL: http://www.inderscience.com/link.php?id=29069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:366-383 Template-Type: ReDIF-Article 1.0 Author-Name: Valentino Cattelan Author-X-Name-First: Valentino Author-X-Name-Last: Cattelan Title: From the concept of haqq to the prohibitions of riba, gharar and maysir in Islamic finance Abstract: This paper suggests a juridical interpretation of the prohibitions of riba, gharar and maysir through the outline of the concept of 'right', haqq, in Muslim law. The approach provides a comprehension of the bans alternative to its religious/moral understanding which is still prevalent in academic literature despite the uncertainty inherent in it. In particular, the paper argues that the doctrines of riba, gharar and maysir, commonly considered as evidence of the religious/ethical bases of Islamic law, express, more precisely, a requirement of efficiency of the contract ('aqd) linked to the quantitative and qualitative equilibrium, whose deepest sense may emerge only within the conceptualisation of haqq in Islamic justice ('adl). Journal: Int. J. of Monetary Economics and Finance Pages: 384-397 Issue: 3/4 Volume: 2 Year: 2009 Keywords: comparative law; Islamic law; contract; haqq; riba; interest; gharar; maysir; risk; Islamic finance; Islamic justice. File-URL: http://www.inderscience.com/link.php?id=29070 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:384-397 Template-Type: ReDIF-Article 1.0 Author-Name: Seng Kok Author-X-Name-First: Seng Author-X-Name-Last: Kok Author-Name: Gianluigi Giorgioni Author-X-Name-First: Gianluigi Author-X-Name-Last: Giorgioni Author-Name: Jason Laws Author-X-Name-First: Jason Author-X-Name-Last: Laws Title: Performance of Shariah-Compliant Indices in London and NY Stock Markets and their potential for diversification Abstract: This paper aims to contribute to the empirical literature on the performance of Sharia-Compliant Indices (SCIs) by evaluating the performance of a number of SCIs, in comparison to similar mainstream indices, as well as in comparison to other ethical funds. Furthermore, the paper will test for co-integration among the SCIs and the mainstream ones to establish whether there is any scope for diversification. The main findings are that SCIs offer an opportunity for portfolio diversification with mainstream indices and other ethical funds within the UK. Journal: Int. J. of Monetary Economics and Finance Pages: 398-408 Issue: 3/4 Volume: 2 Year: 2009 Keywords: portfolio diversification; SCI; Shariah compliance; Shariah-compliant indices; Islamic finance; performance evaluation; ethical funds; UK; United Kingdom. File-URL: http://www.inderscience.com/link.php?id=29071 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:398-408 Template-Type: ReDIF-Article 1.0 Author-Name: Karim Ben Khediri Author-X-Name-First: Karim Ben Author-X-Name-Last: Khediri Author-Name: Hichem Ben-Khedhiri Author-X-Name-First: Hichem Author-X-Name-Last: Ben-Khedhiri Title: Determinants of Islamic bank profitability in the MENA region Abstract: This paper examines the determinants of Islamic bank profitability in the MENA region, during the years 1999-2006. We estimate several specifications to study the impact of bank-specific and country-specific variables, including macro-economic conditions, market structure and institutional development, on bank profitability. The results provide evidence suggesting that capitalisation and management efficiency enhance bank profitability. The results also indicate that bank profitability is positively associated with, economic growth, inflation and bank concentration. We also show that Islamic bank profitability is higher in countries with better socio-economic conditions and better legal systems. Journal: Int. J. of Monetary Economics and Finance Pages: 409-426 Issue: 3/4 Volume: 2 Year: 2009 Keywords: Islamic banking; MENA region; performance evaluation; bank profitability; Islamic finance; capitalisation; management efficiency; Middle East; North Africa. File-URL: http://www.inderscience.com/link.php?id=29072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:409-426