Constraints to Islamic finance growth

Constraints to Islamic finance growth Contents INTRODUTION: The global financial system: Facing the challenge: Reaching critical mass: THE REGULATORY CHALLENGE: Malaysia as case of study: CONCLUSION: Reference INTRODUTION: The Islamic financial industry today is an important component of the global financial world, the total Islamic assets ballooned from US$150 billion in the 1990s to US$1 trillion in 2010.The most successful and fast developing sector of Islamic financial industry is namely –SUKUK, Islamic banking, TAKAFUL, and fund management. SUKUK market at the end of 2010 was estimated to reach US$143 billion; the Islamic banking sector worldwide is valued at US$850 billion in term of assets, while Islamic fund industry under management grew by 15% globally. The IFSB expects the value of global Islamic financial assets to reach US$1.6 trillion by 2012. Islamic finance has demonstrated its competitiveness and resilience during the global financial crisis. Today Islamic finance is in transition to the next stage of development, greater international integration and Islamic finance institution to mobilize a higher level of global cooperation will help to further propel the prospects of Islamic finance moving forward. Several countries now in the race to become Islamic finance hubs such as –London, Hong Kong and Singapore, also new market such as-Luxembourg, South Korea and Australia, in addition they aspire to become Islamic finance centers. The global financial system: Global wealth currently held by 4.4 billion people has increased 72% since 2000 to reach US$195 trillion driven by robust growth in emerging markets, many of which are comprised of large, diverse Muslim populations. Global wealth is estimated to grow 61% to US$315 trillion by 2015. On the other hand, US banking assets are valued at approximately US$13.3 Trillion at the end of 2010.while global banking assets reached US$85 Trillion by end of 2011.The value of global Islamic across all asset closes remains minuscule in comparison to that of their conventional counterpart .Total Islamic financial assets make up less than 1% of the total global financial assets. Facing the challenge: Nowadays market capitalization of Islamic banking dwindles in comparison to their conventional counterpart, the capitalization was only 4.1%, and actually Islamic banks were much less affected by the global financial crisis. The Islamic banks are facing a larger challenge as the conventional banks recapitalize and merge. Conventional banks have been able to return to profit in NO time in 2010 only, the ten top conventional banks (by –Pre-crisis market capitalization) net profit increase by 139% year on year. Meanwhile the Islamic banks suffered 55% decline in net profit during the same period. Reaching critical mass: Islamic finance needs to reach the critical mass and cannot be underestimated. It has been identified as the number one for Islamic finance to become truly competitive with the conventional system, ways to get this goal could include reaching out to untapped markets and audiences or build an entity can influence multiple areas of the market with expertise and capital. Large –scale institutions which will have all the capabilities to penetrate the various segmented markets with expertise and knowledge while providing Shariah- compliant financial solutions. Another often mentioned challenge in the Islamic finance industry is the issue of liquidity. The Islamic finance markets currently lack the liquidity , but in the last ten years Islamic financial institutions (IFI) developed rapidly to meet the demand from both retail and corporate entities, and IFIs still face the challenge of a lack of instruments to manage liquidity as a result product being short -term given under the current constraints. But the large Islamic finance institutions can enhance market liquidity and hence offer product pricing by integrating their global and regional market operations. Also Islamic finance needs to meet the human capital requirement. Many Islamic banks still have limited capabilities and expertise to consistently create, therefore increase with development of Islamic financial product and services need for high skilled staff. Further areas of focus in capacity building and talent development include: The need for practitioners and stakeholders to be highly qualified. The need for specialized training and educational institutions. The development and adoption of industry best practices. The collaboration and exchange of knowledge across jurisdictions and supplementary research into and development of key specialized areas. Second area for reaching critical mass is Islamic microfinance, currently there are more than 200 Islamic microfinance institutions around the world, the main countries are Indonesia, Bangladesh and Afghanistan; but Islamic microfinance is still in its nascent stage. A 2007 global survey on Islamic microfinance undertaken by the (GAP) group to assist the poor shows that only 350.0000 customers and accounts for only around 0.005% of total microfinance outreach. Although 2010 estimates now put this figure at 0.05%, the slow growth in Islamic microfinance is due mainly to the fact that the facilities were usually provided by specialized institutions such as non-government organization (NGOs) and not by Islamic banks. Islamic microfinance should be integrated into countries mainstream banking and financial system, this will help to: Create greater awareness of product. Encourage product innovation Improve access to microfinance. Widen and strengthen the distribution channels. Standardize regulation and improve transparency. THE REGULATORY CHALLENGE: Global financial sector lost almost US$ 1.8 trillion as a result of the financial crisis and a big part of the recent financial crisis can be blamed on regulatory failure .The absence of rules during the global depression resulted in many economists to reconsider their views on the model based on market in economic theory and is continuous in current communities in conventional banking. Many governments all over the world have introduced financial and economic reforms as a kind of government intervention to produce well- regulated financial systems, Malaysia as case of study: Malaysia was resilient against the global financial crisis due to strong fundamentals and inherently sound financial regulatory framework. Islamic banking in the country was well protected from the effects of the crisis because of the Islamic financial institution strict commitment to Islamic principles, which prevents high level of benefit speculative activities. The regulatory authorities have introduced a comprehensive regulatory and supervisory framework for Malaysia’s dual financial system. Stronger standards have been set for corporate transparency governance, accountability, disclosure, risk management, customer protection, and market discipline. Below are some of the introduced internal regulations: 1- Corporate Governance Guidelines 2-Rate of Return Framework 3-Guidelines on Financial Disclosure 4_Sharia Committee Guidelines 5-Islamic Money Market Guidelines 6-Capital Adequacy Standards 7-Musharakah and Mudarabah 8-Firewalls for Islamic Window Operations. Generally, these initiative and regulation have the following effects on the Malaysian Islamic financial system: System, maintain the confidence of the public with IFIs as the custodians of public funds. Strengthen a competitive financial system which offers efficient and reliable services. Ensure the health of each IFI for development Prevent the risk of a contagion and methodology failure of the financial system Promote good market practices and high standards of corporate governance Protect customer and shareholders interest. CONCLUSION: There are some elements that are likely to comprise the growth of Islamic finance as below: The present Islamic banking is based on reproduction of conventional banking products, this is lacking to achieve the overall aims of Islamic finance system which is based on impartial distribution of economic advantages and makes Islamic finance less effective than their conventional counterparts. Not all the conventional products have an Islamic finance identical treasury and liquidity management tools. Islamic finance needs changes in the legal regulatory and tax environment to absorb finance without incurring additional cost to the customers. The different interpretations of sharia provisions have resulted in the absence of unification; common understanding is required to merge local market with the global market. Shortage of necessary tools to manage liquidity Expertise and human resource in Islamic finance are rare. For Islamic finance to get good stage of growth should be extended to reach critical mass, chances to get there include: 1-Large scale institutions have the possibility and capability to penetrate the different fragmented markets with experts while providing sharia compatible with financial solutions. 2-Microfinance has ability to find opportunities for the untapped SME market of the emerging economies and to capture interest in Islamic microfinance. 3-Sound regulation, to make sure that Islamic finance has a decent opportunity of growth and development while expending to critical mass. Some of the remaining challenges to be overcome include the development of human capital. Reference www.dawn.com/news/641420/comment-and-analysis-growth-constraints-in-islamic-financial-sector IFSB 4th public lecture on financial policy and stability, lecture by Baljeet Kaur Grewal- Amman- Jordan -2011 1

Ethical Computing

Ethical Computing QBA 362 w/ Burke Ltelatk H. Fritz FRITZ, LTELATK Ethical Computing QBA 362-Spring 2010 E T H I C AL C O MP UT I NG 1. Find a code of ethics from a firm of your choosing (other than the CPSR or the ACM). What do you think are the best five guiding principles from all the tips that you found? http://www. buzzle. com/articles/computer-ethics-code-of-ethics-in-computing. html Code of Ethics ? Information stored on the computer should be treated as seriously as written or spoken word. ? Privacy should not be violated. In case of academic use, it is known plagiarism. ? ? ? Information for public viewing should not be modified or deleted or inaccessible since these are considered as destructive acts. Intrusive software such as â€Å"worms† and â€Å"viruses† which are destructive to the computer system is also illegal. Congesting somebody’s system with a lot of unwanted information is also unethical. Sending obscene and crude messages through mail or c hat is also forbidden. ? Sending sexually explicit content, message or pictures is also forbidden †¡ I felt the top five codes under Buzzle ®Ã¢â‚¬â„¢s Code of Ethics were the best. Because in general it covers a broad area of things. Treating information stored on computers as if they were written or spoken words, is like asking users to respect the rights of others, as well as their responsibility towards other people’s work. (Individual Responsibility) Leaving other people’s work in tact as they are—without modification or deletion, is important because it preserves the other person’s integrity. It’s kind of the same as walking into (or breaking into ) someone’s home and rearranging their furniture without their knowledge. Preserving Integrity) †¡ 2 FRITZ, LTELATK Ethical Computing QBA 362-Spring 2010 2. Is forwarding e-mail jokes good or bad? Summarize the opposing arguments you found. †¡ I personally forward e-mail that I think is appropriate for the individual I am sending the message to. However, congesting someone’s space is considered unethical according to the Buzzle ® Code of Ethics. †¡ Another factor I was totally oblivious of was the fact that all these people’s names and address are forwarded with the mail. My current method of forwarding the message is just to cut the message content and then forward it to friends. Sometimes I insert their address in the blind carbon copy (bcc) area to keep their address private. It is all about respecting someone’s privacy and integrity. 3. How does anonymous e-mail work and why would you use it? †¡ There are so many sites where you can set up anonymous e-mails, i. e. http://www. sendanonymousemail. net/ or http://www. hidemyass. com/anonymous-email/. But you can just as well set up a bogus account and use it to send anonymous e-mails. There were so many given reasons to use such websites like, â€Å"catching a spouse/partner cheating,† whistle-blowing, reporting illegal activities to the authorities. But I say, if you can’t say it in person, write it in a letter and sign it with your name. Be account for what you believe. It takes guts, but sometimes we just gotta. †¡ 4. What are five ways e-mail use can be unethical? Which do you think is most common? Why? †¡ †¡ †¡ †¡ †¡ †¡ Using e-mail to steal company information. Using e-mail to scam people out of money. Using e-mail to conduct illegal activities, like money laundering, human trafficking, etc†¦ Using e-mail to ruin someone’s reputation or â€Å"blasting† stuff about a foe. Using e-mail in push/mass marketing. (Free Viagra or stuff like that) The most common I used to get is push/mass marketing. I once got my Inbox filled with 10,000 messages in less than a month. 5. Why is deliberate spreading of viruses unethical? Name five reasons. ? ? Intrusive software such as â€Å"worms† and â€Å"viruses† which are destructive to the computer system is also illegal. (Buzzle  ®) Congesting somebody’s system with a lot of unwanted information is also unethical. Buzzle  ®) ? 1) Thou shalt not use a computer to harm other people: If it is unethical to harm people by making a bomb, for example, it is equally bad to write a program that handles the timing of the bomb. Or, to put it more simply, if it is bad to steal and destroy other people’s books and notebooks, it is equally bad to access and destroy their files. (CEI) 3 FRITZ, LTELATK Ethical Computing QBA 362-Spring 2010 ? 2) Thou shalt not interfere with other people's computer work: Computer viruses are small programs that disrupt other people’s computer work by estroying their files, taking huge amounts of computer time or memory, or by simply displaying annoying messages. Generating and consciously spreading computer viruses is unethical (CEI) ? 7) Thou shalt not use other people's computer resources without authorization: Multiuser systems use user id’s and passwords to enforce their memory and time allocations, and to safeguard information. You should not try to bypass this authorization system. Hacking a system to break and bypass the authorization is unethical 4

Honor in Gabriel García Márquezs Chronicle of a Death...

Values are a vital part of any community. They shape the identity of a culture and help to form the identity of each individual in that society. Sometimes these embedded values have more power over a person than anyone would like to admit. Gabriel Garcà ­a Mà ¡rquez shows the power of the value of honor in his book, Chronicle of a Death Foretold. In Garcà ­a Mà ¡rquez’s writing, the theme of honor shows to have control over most of the characters. Through the many characters in Garcà ­a Mà ¡rquez’s book, we can see that the heavy burden of one’s honor is portrayed as the reason for Santiago Nasar’s unfortunate homicide. Pedro and Pablo Vicario, being the ones who held the knives that murdered him, are the direct cause of Santiago†¦show more content†¦This feeling of obligation that comes from maintaining honor is supported by the pressure of those in the community who also uphold the value. Pablo’s wife, Prudencia Cotes, shows the pre ssure the boys were under by saying, I never would have married him if he hadn’t done what a man should do† (72), when referring to Santiago Nasars death. Throughout the novel, many characters demonstrate the pressure honor holds as a value in the town’s culture by failing to inform Santiago Nasar of Pedro and Pablo Vicario’s plan. This shows their idea that honor must be sustained within a family. It is true that there are the few towns people, like Clotilide Armenta, who try to directly warn Santiago, but most fail to involve themselves in any way. In the case of Santiagos fiancà ©e, instead of warning her soon to be husband, she only thinks about herself and her own honor; â€Å"she went through a crisis of humiliation† (133), ashamed, thinking that Santiago must marry Angela to uphold Angela’s and the Vicario family’s honor because he had taken her virginity. We can further see the support by the town of these values by the fact t hat the Vicario twins only spend three years in jail. When the boys go to speak to the priest, they say that they have committed murder, but that there is no crime. In court, â€Å"the lawyer stood by the thesis of homicide in legitimate defense of honor† (55). Because of the short time the boysShow MoreRelatedChronicle Of A Death Foretold Analysis794 Words   |  4 PagesLoss of Honor in Gabriel Garcia Marquez’s novel Chronicle of a Death Foretold In the novel Chronicle of a Death Foretold by Gabriel Garcia Marquez, two of the main characters, Pablo and Pedro Vicario, committed a murder based on allegations presented by their sister Angela Vicario. Throughout the novel, the townspeople try to justify the brothers’ actions as a mechanism to restore their sister’s honor. Based on the novel honor was salient in determining a familys worth; reputation, honor and genderRead More Use of Magical Realism in Chronicle of a Death Foretold Essays1423 Words   |  6 PagesUse of Magical Realism in Gabriel-Garcia Marquezs Chronicle of a Death Foretold   Magical realism is clearly present throughout Gabriel-Garcia Marquezs novel Chronicle of a Death Foretold.   Magical realism is the juxtaposition of realism with fantastic, mythic, and magical elements. A secondary trait was the characteristic attitude of narrators toward the subject matter: they frequently appeared to accept events contrary to the usual operating laws of the universe as natural, even unremarkableRead MoreAnalysis of Cultural Flaw in Chronicle of a Death Foretold1485 Words   |  6 PagesCultural Flaw in Chronicle of a Death Foretold Humanity has built grand and wondrous cultures and societies, for the better of mankind people have devoted themselves to a functional structured society. 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The social ideologies of machismo and marianismo act as a source of pressure toRead MoreTheme Of Machismo In Chronicle Of A Death Foretold1554 Words   |  7 PagesChronicle of a Death Foretold is a story about a murder that happened in a small town, in which the society allowed to happen without questioning it. In this town there is an emphasis on male pride and men’s sexual behaviors. Everyone expects a certain code of male honor from every man. The way they look and act is all portrayed by this emphasis of machismo. Machismo men are stereotypically thought of as strong, rich, loud, and as womanizers. They are often associated with violence. Drinking, fightingRead MoreCesar Garcia Marquez s Chronicle Of A D eath Foretold Essay1625 Words   |  7 Pagesstandards, as seen in the negative portrayal of Colombian women in Gabriel Garcà ­a Mà ¡rquez’s Chronicle of a Death Foretold. Colombian women, who aspire to be independent and economically successful, suffer in relation to men who are thought of as the head of the household. Many Colombian women will continue to be dependent on men for economic stability, despite being capable of performing tasks other than household work because of Mà ¡rquez’s portrayal of Colombian women as intellectually inferior to men

Human Trafficking Is A Crime Against Humanity - 2357 Words

â€Å"I was brought here a few years ago, I lived in the streets at that time. A man took me to Daulatdia, the biggest brothel in Bangladesh. He sold me to the owners, who kept me in a room and gave me drugs. Then, a man suddenly came in and started taking off my clothes. I was so scared, I didn’t understand what was happening† (Halima, 17). Halima was brought into the world of sex trafficking as a child and now lives in a brothel in central Jessore, the last town before the border into India from Bangladesh. Human trafficking is a crime against humanity and although all forms of slavery were completely abolished in 1981, for the last 35 years on average 800,000 to 4 million people are exploited annually (CNN.com). This phenomenon affects every country whether it be place of origin, transit or destination; and it is more prominent in developing countries and eastern Asia. The United Nations’ Refugee Agency claims that Bangladeshis made up 40 to 60 percent of the migrant traffic in 2015. Human trafficking in Bangladesh exploits men, women and children into forced sexual acts and labor and keeps victims in captivity. Human trafficking violates basic human rights such as the right to freedom, equality, security, health and most importantly protection from slavery or servitude. The absence of these basic human rights leads to anguish, a lost sense of security and a loss of identity which alters the quality of life for an individual. To minimize trafficking in Bangladesh theShow MoreRelatedHuman Trafficking1276 Words   |  6 PagesMrs.Lemere English III 1 May 2012 The Secret Life of Human Trafficking Debbie s story is particularly chilling. One evening Debbie said she got a call from a casual friend, Bianca, who asked to stop by Debbie s house. Debbie went outside to meet Bianca, who drove up in a Cadillac with two older men, Mark and Matthew. 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