Journal of Islamic Finance 2018-11-01T02:16:34+00:00 Assoc Prof Dr Adam Abdullah Open Journal Systems <p><em>Journal of Islamic Finance </em>(JIF) is an official publication of IIUM Institute of Islamic Banking and Finance (II<em>i</em>BF), International Islamic University Malaysia (IIUM).</p> <p><br>The journal is designed to provide a platform for researchers, academicians and practitioners who are interested in new knowledge and discussing ideas, issues and challenges in the field of Islamic finance, banking, accounting, business and economics.</p> <p><br>The scope the journal includes, but is not limited to, Islamic banking, Islamic capital markets, Islamic wealth management, issues on <em>Shari’ah</em> implementation and practices of Islamic banking, <em>zakat</em>, <em>waqf</em>, <em>takaful</em> and comparative analysis of Islamic and conventional financial institutions. The journal is published biannually in June and December and all articles are in English.</p> <p>&nbsp;</p> <p><strong>Currently Indexed by</strong></p> <p>Malaysian Citation Index (MyCite)&nbsp;<a href=""><img src="/iiibf-journal/public/site/images/admin/mcclogo.jpg" alt="" width="48" height="9"></a></p> <p>Islamic World Science Citation Database (ISC)&nbsp;<a href=";SrchTxt=journal%20of%20islamic%20finance"><img src="/iiibf-journal/public/site/images/admin/isc_logo.jpg" alt="" width="48" height="12"></a></p> <p>Index Islamicus&nbsp;<img src="/iiibf-journal/public/site/images/admin/Islamicus.jpg" alt="" width="30" height="12"></p> <p>Almanhal&nbsp;<a href=""><img src="/iiibf-journal/public/site/images/abduh/1464267_20120111142256.png" alt="" width="55" height="11"></a></p> <p>&nbsp;</p> <p><strong>Privacy Statement:</strong></p> <p>The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.</p> <p><strong>&nbsp;</strong></p> <p><strong>Disclaimer:</strong></p> <p>Opinions expressed in articles and creative pieces published in this Journal are those of the authors and do not necessarily reflect the views of the editors, the editorial board or the publisher.</p> <p>&nbsp;</p> Proposed Waqf Framework for Food Security and Price Stabilization Policy of Rice in Indonesia 2018-11-01T02:16:34+00:00 Muhammad Dandy Alif Wildana Syed Musa Syed Jafaar Alhabshi <p>This paper provides a framework for agriculture<em> waqf </em>in support of a food security strategy and price stabilization policy for rice in Indonesia. Instability and inefficiency of rice production has inceased, involving a high cost of production and low access of financing, which leads to instability of stock. Long supply chains, mismatch of supply and demand of rice due to the timing gap between harvesting periods, also encourages speculative practices. <em>Waqf</em>, through agricultural ventures that focus on producing rice, can play multiple roles and provide solutions for the entire supply chain of rice involving a framework designed to address the problems of rice in Indonesia. The proposed framework is intended to benefit all related stakeholders by maximizing the potential of <em>waqf</em> assets that already exist in Indonesia, with the justification based on the data, that provides an insight in to the real conditions of rice in Indonesia. The findings reveal that <em>waqf</em> can fit perfectly in the current framework for food security and price stabilization policy, with an additional reserve that independently enables the custodian of <em>waqf</em> assets from agriculture (rice) ventures. This promotes farmers as <em>waqf</em> partners, to create a stable rice production environment and to shorten long supply chain by creating associated commercial subdivisions. Hence the benefit is distributed to both farmers and customers through various subsidies and necessary aid in order to attain food security and stabilize the price of rice thereby improving the welfare of Indonesians.</p> 2018-09-18T06:56:26+00:00 ##submission.copyrightStatement## Gap Analysis Between the Rahn Exposure Draft by Bank Negara Malaysia and Rahn Practice in Islamic Pawn Broking Institutions 2018-11-01T02:16:34+00:00 Nur Faakihin Rusni Hassan <p>This paper aims to analyse the existing structure of <em>rahn</em>-based Islamic microcredit lending facilities by Bank Kerjasama Rakyat and Pos Malaysia, the two institution with the largest number of <em>Rahn</em> branches in Malaysia, in comparison with the Exposure Draft on <em>Shari’ah</em> Requirements and Optional Practices of <em>Rahn</em> issued by Bank Negara Malaysia (BNM). The Exposure Draft delineates the <em>Shari’ah</em> requirements and Optional Practices pertaining to <em>Rahn</em> such that the regulatory body seeks feedbacks and alternative proposals from stakeholders to enhance the current practise of <em>rahn</em>. The main purpose of this paper is to investigate whether the practices of Bank Kerjasama Rakyat and Pos Malaysia comply with the proposed policy document by BNM with regard to the <em>Shari’ah</em> aspects. This paper employs a qualitative research method based on the data gatherred from secondary sources from the literature and other academic materials including the <em>Rahn</em> exposure draft, in order to evaluate the theoretical and practical aspects of <em>rahn</em> in Islamic microcredit financing. The findings show that in general, the current <em>rahn</em> practices by Bank Kerjasama Rakyat and Pos Malaysia are in accordance with the <em>Shari’ah</em> requirement in the <em>Rahn</em> Exposure Draft issued by BNM, based on available information. However, there are a some concerns regarding the current <em>rahn </em>practices related to the precautious measure before accepting the <em>marhun</em> (pledged item) to ensure the <em>marhun</em> is recognized by <em>Shari’ah</em> and the basis of the imposition of safekeeping fee to customers. As such, these issues call for a further examination and appropriate remedy.</p> 2018-09-18T06:52:26+00:00 ##submission.copyrightStatement## The State of Liquidity Risk Management of Islamic Banks in Bangladesh: A Comparative Study with Conventional Banks 2018-11-01T02:16:34+00:00 Md. Abdul Jalil Al Amin Biswas <p>This paper aims to analyze the current state of liquidity and liquidity risk management of Islamic banks, the historical trend of the liquidity position, and provides a comparison with the liquidity position of conventional banks in Bangladesh. The paper utilizes liquidity ratio, deployment ratio, profit sharing investment account (PSIA) to total deposits ratio, liquidity gap over a specific time period, net stable funding ratio (NSFR), and liquidity coverage ratio (LCR), to discuss the state of liquidity and the trend of liquidity of Islamic banks. Five Islamic banks and five private commercial conventional banks, which do not have any Islamic banking branches, or windows, are chosen as samples. The data is collected from the annual reports published by selected commercial banks. Simple descriptive statistics such as mean and standard deviations are used to analyze the data. This study finds that the liquidity ratio and deployment ratios for Islamic banks are in a downward trend, although by a small percentage. Islamic banks have a negative short-term liquidity gap, although by a small percentage and the variations of liquidity gap are much higher, and the gap is in a declining trend towards being positive. Conventional banks have a positive short-term liquidity gap. Profit sharing investment accounts are experiencing an increasing trend and occupy the major portion of deposits. Liquidity ratio and deployment ratio remain higher for Islamic banks than conventional banks. For the past two years, both types of banks have maintained an adequate ratio as required in Basel III.</p> 2018-09-18T06:49:42+00:00 ##submission.copyrightStatement## Examining the Resilience of Islamic and Conventional Banks to Changes in Macroeconomic Conditions 2018-11-01T02:16:33+00:00 Faten Zoghlami <p>This paper aims to examine if there is any relationship between Islamic and conventional bank resilience to changes in economic conditions. To fulfill our objectives, first we provide a descriptive approach, in which we compare the credit risk evolution of 53 Islamic and 215 conventional banks operating in 10 countries from 2005 to 2015.&nbsp; Then we adopted a regression analysis, to examine to what extent being Islamic does matter in determining (i) the level of a bank’s credit risk, and (ii) sensitivity to changes in macroeconomic conditions. Results reveal that being Islamic seems to not matter, neither in determining a bank’s credit risk level, nor a bank credit risk sensitivity. Both types of bank seem to respond similarly to changes in the macroeconomic context.</p> 2018-09-18T06:43:28+00:00 ##submission.copyrightStatement## Good Governance and Sustainability in Islamic Microfinance Institutions 2018-11-01T02:16:33+00:00 Salina Kassim Rusni Hassan Siti Nadhirah Kassim <p>In the context of microfinance institutions (MFIs), good governance is highly critical in ensuring that the interests of the diverse stakeholders are being protected, while simultaneously safeguarding the viability and financial sustainability of the institution. As the microfinance industry scales up and expands globally, the decision making and operational processes of the MFIs are becoming increasingly complex, hence the need for stronger governance. This paper explores the relationship between good governance and sustainability particularly in the context of the Islamic MFIs. It also examines the mechanisms of governance in Islamic MFIs by critically evaluating the best practices of governance in the microfinance industry.</p> 2018-09-18T06:40:17+00:00 ##submission.copyrightStatement##