Class notes ISLAMIC FINANCE PRODUCTS AND SERVICES Islamic Financial Products, ISBN: 9783030176242
1 keer bekeken 0 keer verkocht
Vak
ISLAMIC FINANCE PRODUCTS AND SERVICES
Instelling
ISLAMIC FINANCE PRODUCTS AND SERVICES
Boek
Islamic Financial Products
Summary of Islamic banking products and services in Malaysia and the regulations behind it that make you understand the concepts and reasons in short time.Excellent for exam study and presentations.
Class notes ISLAMIC FINANCE PRODUCTS AND SERVICES Islamic Financial Products, ISBN: 9783030176242
Class notes ISLAMIC FINANCE PRODUCTS AND SERVICES Islamic Financial Products, ISBN: 9783030176242
Class notes ISLAMIC FINANCE PRODUCTS AND SERVICES Islamic Financial Products, ISBN: 9783030176242
Alles voor dit studieboek (4)
Geschreven voor
ISLAMIC FINANCE PRODUCTS AND SERVICES
Alle documenten voor dit vak (5)
Verkoper
Volgen
zinnera
Voorbeeld van de inhoud
Chapter 1: Introduction to Islamic Finance Products and Services
ISLAMIC FINANCE PRODUCTS AND SERVICES
SUMMARY - Chapter 1: Introduction to Islamic Finance Products and Services
Chapter 1 : Introduction
1.1 What is financial system/ explain environment of financial system:
Overview of 1. Allows the exchange of funds between lenders, investors, and borrowers, operating at nationally and internationally.
Financial 2. contains advanced, closely connected services, markets, and institutions intended to supply an efficient and regular linkage between
(Fin.) System investors and depositors.
3. Money, credit, and finance are used as medium of exchange in financial systems, serving as a medium of known price of products and
services.
4. includes banks, financial markets, financial instruments, and financial services.
5. allocation of funds for investment & economics growth: allows funds to be allotted, invested, or moved between economic sectors.
6 components of Fin. System:
1. Fin. Market : 4 sub market in Malaysia : i- money & foreign exchange market, ii- capital market : equity and bond market; iii- derivaties
market : commodities features, KLSE; iv- offshore market.
2. Fin. Institutions : 2 categories : banking systems, non-bank fin intermediaries e.g unit trust. Provident pension funds, insurance co. E.g:
banks that offers products/services e.g mortgage, insurance etc.
3. Money is the start of financial systems and means for purchase and defining factor of wealth.
4. Fin. Instruments knowns as securities (stocks/bonds/mortgage/insurance)
5. regulatory agencies: monitor activities of fin institutions [2] and fin. Market [1].
6. central bank that integral with each country’s government
1.2 What is Fin. Institutions?
Structure & Fin inst. Provides access to fin market,
Functions of intermediaries between saver and borrower
Financial responsible for money supply to market through investors’ funds to borrower interm of loan/deposits/ investments.
Institutions
2 categories of fin. Intermediaries:
1. depository institutions (take deposits, make loan) vs. non depository institutions (insurance, securities, mutual funds companies etc.)
2. insurance companies (invest in securities, real estate for compensation to policyholders)
3. pension funds (invest contributions to provide payments to retired workers)
4. securities firms (brokers/ investment banks, mutual funds – pool resources and invest in portfolio).
5. finance companies raise funds directly in fin market to make loan
Functions of fin institutions.
1. to facilitate the allocation and deployment of economic resources
2. as intermediaries that facilitate flow of funds
1
, Chapter 1: Introduction to Islamic Finance Products and Services
Special functions of fin institutions
1. Clearing and settling of payments
2. Providing mechanisms for pooling resources (large scale indivisible enterprise)
3. Providing ways to transfer economic resources through time and across distances
4. Managing risks and uncertainty
5. Giving price information in coordinating decentralized decisionmaking
1.3 Bank Negara Malaysia
Islamic 1. promoting economic growth with price stability and maintaining monetary and financials stability
Banking & 2. supervise and regulate fin institutions and deposit taking institution.
Finance
Industry Fundamentals of banking
1. deals with credit facilities, storage for cash, investments, and other financial transactions. accepts customer deposits and offers loans to
individuals and corporate clients.
2. one of the key drivers of most economies because it channels funds to borrowers with productive investments.
3. Banks make money by charging higher interest on loans than the interest they pay on customer deposits. In the United States, banks are
required to retain10% (M’sia-3.0%) of the customer deposits as reserves, while using the other 90% (M’sia-97%) to provide loans.
Development of Islamic financial system in Malaysia
1. Islamic Money Market
2. Islamic Banks & takaful companies
3. Islamic Capital Market.
1.4 Islamic principles of contracts
Salient Islamic finance is fundamentally based on transaction contracts,executed in due consideration of the existing laws of a particular
Features of jurisdiction.
Islamic
Finance 5 to avoid:
1. riba free – any predetermined payment over and above principal = prohibited. Occur in interest-based lending activities, fixed return on
deposits in conventional banking, forward forex contracts.
2. no value – activities must be of value to parties.
3. gambling – have highest level of speculation
4. gharar – all contract have essential elements tht meets necessary conditions. E.g: asset used in sale/ lease contracts is uncertain/
vaguely identify, selling price/ lease rental not known to parties upon enter contract.
5. impure goods : non-halal products, non-permissible entertainment, riba based assets. Eg. Invest in non shariah/ conventional bonds.
2
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper zinnera. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €7,37. Je zit daarna nergens aan vast.
