Running Head: FINANCIAL MANAGEMENT 1
FINANCIAL MANAGEMENT 5
January 12, 2018
Altierus Career College
The topic that will be relied on for this project will be Islamic Financing, this has become one of the major occurring trend in the financial management and thus it will be an interesting topic to try and to understand the aspects that are relied upon by Muslims when they seek financing. A major factor that led me to select this topic is that under the Islamic laws it is not allowed to charge interest in a loan offered. This therefore becomes interesting and the project will seek to find out the understanding that one is provided with when he or she seeks Islamic financing. This is a new financial trend that has been able to see itself being applied to various markets in the world.
Al-Omar, Fu ad. Islamic Banking: Theory, practice, and challenges. New Delhi: Oxford University Publishers, 1996.
This book looks that the general definition of Islamic banking and conventional banking. In making this distinction, the author looked at the provisions of the Quran where it provided that Islamic banking should be interest free and it should be done in a manner that promotes Islamic economy. This therefore differentiates Islamic banking from conventional banking because of the interest aspect. The book states the illegality of ‘riba’ that is interest gained from any transaction between Muslims. Riba therefore becomes the cornerstone of the theory of Islamic banking.
Bill, Maurer. Islamic Mortgages in the United States. Sage publishers, 2006.
This article looked at the best way in which Muslims who were living in the North of America would be able to purchase homes. It was in their best interest that they had to considered Islamic financing due to the low interest base it had to them and this was friendly to them and it was going to make home ownership for Muslims to be easy.
Aamer Madhani. Shariah financing growing popular in the west. USA Today, 2015.
The article provides a story one businessman who wanted to stay true to his faith but he was facing financial obstacles since he needed to borrow 2 million USD, to expand his business but his faith did not allow him to pay interest which in Arabic is known as ‘riba’. He was able to get a loan from a traditional Islamic bank that existed in Chicago and he was not required to pay loan. The author intended to show the extent in which strong Muslim adherents would go in getting an Islamic financier without compromising their faith.
Riyadh Mohammed. Rise of Islamic banks on Main St. USA. CNBC.com, 2016
The article has been able to provide an elaborate analysis of how Islamic banking has been growing in the recent years. In the analysis the Islamic banking sector has been able to grow from $ 200 billion in 2000 to $ 3 trillion in 2016. This shows that the banks are doing very well, and they have a good appeal among the Muslims that are living in the United States.
Yahia Abdul-Rahman. The Art of Islamic banking and finance. Wiley, 2016.
In this book, the structure and principles that overlay the Islamic banking is provided out here. The various things that cannot be financed under Islamic banking are also provided. The book also provides for the various Quran scriptures that acts as the foundational basis for Islamic banking.
The financial regulation that will be looked at will be the Sarbanes-Oxley Act, this will be looked with an intention of seeing how the Islamic banking and financial set up has been able to comply with the necessary provisions of this act. The act seems to bring sanity in accounting procedures, this therefore implies that the Islamic banks will need to comply with the law. This will be looked at deeply.
Under financial theories the paper will look at the risk tolerance, it will seek to look at how Islamic banking and financing in the United States has been able to cushion the risk and be able to turn out to be making huge profits.
Al Omar, F., and M. Abdel Haq. 1996. Islamic banking: Theory, practice and challenges. London: Zed Books.
Bill, Maurer (2006). Islamic Mortgages in the United States. Sage publishers.
Riyadh Mohammed (2016). Rise of Islamic banks on Main St. USA. CNBC.com