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Islamic banking

On this page you can access a range of articles, books and online resources providing an overview of the UK and global Islamic banking sector and news of recent developments.

eBooks

The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Takaful - Islamic insurance

Mastering Islamic Finance is a practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. Chapter 8 on Takaful covers the Sharia perspective on conventional insurance, the Islamic alternative (takaful), takaful models, types of takaful policy and the future of the takaful industry (pages 147-159).

Sukuk

Mastering Islamic Finance is a practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. Chapter 6 on sukuk covers the mechanics of a sukuk transaction, types of sukuk, asset-based verus asset-backed sukuk, sukuk and the secondary market and the future of sukuk (pages 97-111).

Sharia-compliant investments and wealth management

Mastering Islamic Finance is a practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. Chapter 7, Sharia-compliant investments and wealth management, includes advice on islamic wills and tax-planning opportunities for Muslim clients in the UK (pages 141-145).

Islamic Financial Intermediation and Banking

A guide to the theory and features of Islamic financial systems. In Chapter 8, Islamic Financial Intermediation and Banking, the authors cover financial intermediation by Islamic banks, providing a conceptual balance sheet of an Islamic bank to give an overview of typical structure, operations and capabilities of intermediation. The ways in which Islamic banking differ from conventional banking are explained in detail.

Capital markets

This book covers the theoretical background of Islamic finance, the concept of riba, risk sharing as an alternative to debt, Islamic financial intermediation and banking, regulation of Islamic financial institutions, and the challenges of globalisation. In chapter 9: capital markets the authors turn their attention to Islamic bonds and provide a step by step walkthrough of the process of structuring a sukuk (pages 185-187).

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Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Merger mad

Global Finance's 2019 ranking of the safest Islamic banks in the Gulf Cooperation Council (GCC) states, where a wave of mergers is transforming the banking sector. Islamic banks in the Gulf region are joining forces in order to better compete in a difficult environment.

Islamic finance's Fintech leap

Islamic banks are developing digital innovations and workarounds for their Shariah-compliant banking services. Several Islamic banks are currently using or testing blockchain to assist with payments and remittances, as well as for trade finance purposes such as blockchain Islamic sukuks.

Annual awards: Best Islamic Financial Institutions 2019

Article announcing the global winners of Global Finance's Best Islamic Financial Institutions 2019 annual awards. This year's winners have focused on technology and product innovation.

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The market

GCC Islamic banks 2019-2020
S&P Global Ratings research into the growth of Gulf Cooperation Council (GCC) Islamic banks during 2013-2018, with predictions for profitability growth in 2019-2020.

Global trends in Islamic finance and the UK market 2019
TheCityUK publishes a regular Islamic finance research report looking at the global market for Islamic financial services and the UK position in the Islamic banking sector. The latest edition was published in April 2019.

Islamic Finance Outlook 2019
S&P Global's outlook report takes a look at the future of Islamic banking, including the potential impact of standardization and financial technology (Fintech) on the industry.

Islamic Financial Services Industry Stability Report 2019
Annual industry report by the Islamic Financial Services Board (IFSB). Provides updates on trends, market growth and developments in Islamic banking and assesses potential risks and stability issues in the sector.

Thomson Reuters Islamic Finance Development Report 2018
The latest Thomson Reuters report examines the condition of the Islamic finance industry, its top performing Islamic banking markets and the trends that will propel future growth. Requires free registration to download.

World Islamic banking competitiveness report 2016
Survey report published by EY with analysis of global trends and individual country performance. The reports for 2014–15 and 2013-14 are also still available.

Statistics

Islamic Financial Services Board (IFSB)

The IFSB issues global standards for the Islamic finance industry, as well as conducting research and coordinating new industry initiatives. It currently provides quarterly Islamic banking data for 22 countries: Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Kazakhstan, Indonesia, Iran, Jordan, Kuwait, Lebanon, Malaysia, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Sudan, Turkey, the United Arab Emirates and the United Kingdom.

Prudential and Structural Islamic Financial Indicators (PSIFIs) available include: 

  • Capital adequacy
  • Asset quality
  • Earnings
  • Leverage
  • Liquidity
  • Sensitivity to risks
  • Value of Shariah-compliant financing by economic activity
  • Value of returns by major type of Shariah-compliant contract
  • Number of Islamic banks
  • Number of employees

Useful links

Organisations

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
AAOIFI is a not-for-profit organisation which develops, prepares and issues Financial Accounting Standards (FASs) and Shari'a Standards (SSs) for the global Islamic finance industry.

General Council for Islamic Banks and Financial Institutions (CIBAFI)
An international membership organisation headquartered in Bahrain, CIBAFI aims to represent the global Islamic financial services industry. Its website provides industry news, research and position papers. 

Institute of Islamic Banking and Insurance (IIBI)
A UK charity which aims to facilitate a wider understanding of the Islamic financial system through training courses, lectures, videos and its NewHorizon magazine. 

Islamic Financial Services Board (IFSB)
The Islamic Financial Services Board (IFSB) is an international standard-setting body which was established in 2002 with a mission to ensure the stability of the Islamic financial services industry. The IFSB has issued a series of standards for the Islamic financial services industry covering capital adequacy, corporate governance and risk management.

Malaysia International Islamic Financial Centre (MIFC)
An initiative launched by Malaysia's financial and market regulators to promote Malaysia as a major hub for international Islamic finance. The centre provides a knowledge centre which includes a range of publications and guides on Islamic finance. The website includes the text of SPR1: Murabahah from their series of Principles & Practices of Shariah in Islamic Finance.

Guides, surveys and other publications

Chambers Banking & Finance 2019 UK guide
The Banking & Finance guide by specialist law publishers Chambers & Partners provides expert legal commentary on key issues for businesses. The Islamic Finance section has been contributed by law firm Winston & Strawn London LLP; it provides an overview of the UK regulatory and tax framework for Islamic finance, requirements for Islamic banks and takaful operators to operate and Shari'a-compliant products and transactions.

Corporate Governance Practices in Islamic Banks 2017
A  joint World Bank Group and CIBAFI publication analysing current corporate governance practices within the Islamic banking industry. Using information from 77 Islamic banks, the report focuses on six corporate governance themes: the Board of Directors; Board Committees; Internal Control and External Audit; Risk Governance; Shariah Governance and Transparency and Disclosure. 

Financial reporting by Islamic financial institutions: 2017 update
An update to the Asian-Oceanian Standard-Setters Group (AOSSG)'s 2014 international study of financial statements of 132 Islamic financial institutions from 31 jurisdictions. The surveys identify the financial reporting standards that the institutions are legally required to comply with and the extent of compliance.

Financial Reporting Issues relating to Islamic Finance
Research paper published by AOSSG in October 2010. Topics include:

  • Islamic accounting standards
  • applying IFRS to Islamic financial transactions
  • recognising a financing effect
  • profit-sharing contracts
  • Ijarah
  • Sukuk
  • Takaful. 

The core principles for Islamic Finance regulations and assessment methodology
An International Monetary Fund (IMF) paper proposing incorporating the Islamic Financial Services Board (IFSB) Core Principles for Islamic Finance Regulation (CPIFR) as part of the IMF standards used in assessing the banking regulatory and supervisory regimes of relevant member jurisdictions, from 1 January 2019. The IMF Executive Board endorsed this proposal in May 2018 - see press release, IMF Executive Board Adopts Decisions to Formally Recognize the Core Principles for Islamic Finance Regulation (CPIFR) for Banking.

UK-Turkey Islamic FinTech working group: Case studies and insights
A March 2019 report from TheCityUK, focusing on the opportunities for the UK and Turkey to cooperate on scaling Islamic finance through FinTech. The report includes a number of practical case studies and insights into FinTech for Islamic finance.

United Arab Emirates Islamic Banking Index 2019
An annual survey of consumer uptake and perception of Islamic banking products and services in the United Arab Emirates (UAE), carried out by Emirates Islamic. The 2019 survey found that three out of five (60%) of the consumers surveyed currently have an Islamic banking product, up from 55% in 2018 and 47% when the index was launched in 2015.

Banking with a different approach
CFO Danesh Mahadeva explains to Peter Taylor-Whiffen why Sharia-compliant Gatehouse Bank is attracting so many customers and staff – of all faiths.

Databases, portals and other resources

International Islamic Financial Market
A non-profit international institution supported by a number of central banks and government agencies with a mission to establish, develop and promote Islamic capital and the money market.

Islamic Markets
An online platform for the global Islamic finance community providing a comprehensive collection of education resources, financial intelligence and an investing platform.

Further reading

This is a selection of recent books in our print collection – click on the links to see our catalogue record and holdings for each item. Please contact us if you would like to borrow a book or request a copy of an article.

Understanding Islamic financial services: theory and practice
K.Ullah (Kogan Page, 2017, 212 pages)
This book explains the basic concepts, principles, contracts and financial products of Islamic finance, using case studies and examples to bring the text to life.

Foundations of shari'ah governance of Islamic banks
K. Ginena (John Wiley & Sons, 2015, 383 pages)
This book aims to "detail the internal, external and institutional arrangements needed to promote responsible shari'ah governance, and critically analyse current laws, regulations and industry practices on the topic." It includes a sample shari'ah governance manual and shari'ah audit checklists.

Tolley's International taxation of corporate finance
J.Abrahamson (LexisNexis, 2014, 389 pages)
This book "introduces and discusses international tax issues relating to corporate finance, group treasury and banking operations." An excerpt from chapter 17 on Islamic banking is available on Tolley's website. 

To find out how you can borrow books from the Library please see our guide to book loans.

You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

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