Islamic Finance in a Nutshell

A Guide for Non-Specialists

by Brian Kettell

Number of pages: 360

Publisher: Wiley

BBB Library: Economics and Investment

ISBN: 978-0470748619

About the Author

Kettell has a wealth of practical experience in the area of Islamic banking and finance. He works as a specialist Trainer and Consultant in Islamic banking and finance.


Editorial Review

The ongoing turbulence in the global financial markets has drawn attention to an alternative system of financial intermediation, Islamic banking and finance. This sector has so far remained on the sidelines of the unrest. The sector has grown rapidly in recent years and this new found prominence has raised many questions as to what exactly is Islamic banking and how does it work. This book provides answers to most of these questions.

Book Reviews

"In his other book Frequently Asked Questions in Islamic Finance, Brian Kettell answers some of the most frequently asked questions from his many years experience in working and teaching in Islamic Finance and Banking. The author’s knowledge of the Qu’ran and Sharia’a Law, to new and old Islamic financial concepts, Islamic terms, and Islamic Financial instruments and services, is evident from the simple and reader-friendly approach in explaining what is otherwise difficult to comprehend." — IIFL

Books on Related Topics

Wisdom to Share

Islamic financial institutions are those that are based, in their objectives and operations, on Qur’anic principles.

Profit-and-loss sharing is at the heart of the Islamic system: In pure Islamic banking both the investor and the entrepreneur share the results of the project in an equitable way.

Making money out of money is unacceptable. All financial transactions must be as-set-backed

Lexically, Ijara means to give something for rent. In Islamic jurisprudence, the term Ijara is used for two different situations.

Sharia’a is the religious law of Islam. As Islam makes no distinction between religion and daily life, Sharia’a law covers not only the religious rituals but every aspect of life.

Musharaka is a form of partnership between an Islamic bank and its clients whereby each party contributes to the capital of the partnership to establish a new project or share in an existing one.

All Islamic banks operate current accounts on behalf of their clients. These accounts are operated for the safe custody of deposits and for the convenience of customers.

Mudaraba is a partnership in profit between capital and work. It is conducted between investment account holders, as owners of capital, and the Islamic bank as Mudarib.

Muslims have a moral obligation to conduct their business activities in accordance with the requirements of their religion. They should be fair, honest and just towards others.

Islamic banks provide services to their customers free from interest (the Arabic term for which is riba), and the giving and taking of interest is prohibited in all transactions.