Islamic Financial Institutions: An Introduction (Islamic Business and Finance Series)

This book provides a comprehensive overview of Islamic Financial Institutions, exploring current issues, including governance, Shariah compliance frameworks and regulatory aspects, as well as the principles involved in product structuring. It offers a basic understanding of Islamic financial instruments and their implementation in different regions.The book begins by introducing the Islamic financial system, its objectives, the financial intermediation process, the philosophy and methods of mobilization and utilization of funds followed by an overall comparison with the conventional financial system.It offers a definition and explanation of types of riba, sources of prohibition, the difference between riba and profit, types of transactions which involve interest and the adverse effects of interest on the economy.It covers a detailed study of Islamic financial contracts and discusses trade-based financing products, illustrating the structural and legal differences between conventional a