Islamic Banking and Finance

What Muslim Investors Should Know About AAOIFI

What Muslim Investors Should Know About AAOIFI

It is essential for Muslim investors to know how AAOIFI plays a significant role in correlating Sharia principles and investment activities. AAOIFI stands for Accounting and Auditing Organization for Islamic Financial Institutions. One of AAOIFI’s goals is to set financial reporting that complies and does not contradict Islamic law (fiqh). This article outlines a brief […]

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Interesting! Cash Waqf Can Contribute to Develop the Microfinance Society

Cash Waqf Can Contribute to Develop Microfinance Society

Cash Waqf is currently becoming popular as it can contribute to develop the microfinance society. This article discusses the development of cash waqf in Indonesia jurisdiction particularly. We begin to briefly introduce the definition of waqf, its types, and cash waqf. Then, we present the growth of cash waqf in Indonesia and the role of

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How Do Investment Banks Make Money in the Capital Market?

How Do Investment Banks Make Money in the Capital Market?

Goldman Sachs, JP. Morgan, Wells Fargo, etc. are examples of investment banks that made huge money in the capital market. The investment bank is a financial institution that operates within a capital market system to facilitate all related matters of transaction. This fact makes an investment bank becomes a very lucrative business in the field

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Know 2 Types of Specific Risks in Islamic Finance

This article will discuss two types of specific risks in the Islamic finance industry. As we know, Islamic finance is different from conventional finance as it has specific rulings and characteristics. In general, we learn various types of risks in finance, such as business risk, credit risk, market risk, liquidity risk, legal risk, operational risk,

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Risk and Return in Islamic Finance: 2 Important Shariah Principles

Risk and Return in Islamic Finance: 2 Important Shariah Principles

The relationship between risk and return in Islamic finance involves these two important shariah principles. They are al ghunm bil ghurm and al kharraj bid daman. Both principles are Islamic legal maxims that build the fundamental Islamic law of contracts. Get Musaffa Premium Now  1. Al ghunm bil ghurm Al ghunm bil ghurm refers to

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Is Option Contract Haram to Hedge Desired Stocks Value?

Is Option Contract Haram to Hedge Desired Stocks Value

Owning stocks is subject to market price volatility risk, and hence if we use an option contract to hedge such risk, is it permissible in shariah? Before discussing whether a stock option is halal, we should know its nature and why people use it. Get Musaffa Premium Now  What is an option contract? An option

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