Islamic Finance Made in Germany - A Case Study on Kuveyt Türk (KT Bank)

Islamic Finance Made in Germany - A Case Study on Kuveyt Türk (KT Bank)
Author: Matthias Casper
Publisher:
Total Pages: 51
Release: 2017
Genre:
ISBN:

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In recent decades, Islamic Finance has seen an interesting growth and spread, not only in the Arab or other Muslim, but also in Western countries. This article focuses on Islamic Finance in Germany, a European country characterized by strong economic growth and an increasing Muslim community, mostly of Turkish origin, which saw the opening of its first Islamic Bank in July 2015.After a very brief overview on the experience and the current situation of Islamic Finance in Germany, we will focus on the question whether within the German supervisory law, within the rules for corporate governance or within the civil and tax law legal obstacles can be found that hinder the establishment of Islamic Financial Institutions in Germany. As Islamic bank customers choose Sharia compliant products voluntarily out of respect for their faith, we will focus on the role of the Sharia Supervisory Board, which certifies whether a financial product is in accordance with the Islamic Law.The main part of this article will contain a case study on the KT Bank. We will discuss the current situation of the bank, examine some of their products and ask whether their Sharia Supervisory Board and their internal Sharia Compliance System can be brought in line with the German supervisory and company law. Afterwards we will analyze the position and role of the participatory depositors, especially those who invest their savings under the principle of profit and loss sharing, in the context of Corporate Governance. We will answer the question whether these stakeholders should have a possibility of participation within the bank. Finally, we will discuss Islamic Finance in the context of Corporate Social Responsibility and analyze the position of the KT Bank in this context.

The Islamic Finance

The Islamic Finance
Author: Mehmet Cosgun
Publisher: GRIN Verlag
Total Pages: 145
Release: 2014-11-25
Genre: Business & Economics
ISBN: 3656845638

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Doctoral Thesis / Dissertation from the year 2014 in the subject Economics - Finance, grade: Succesful Defense, Mendel University (Economics), course: International Management, language: English, abstract: This work analyzes whether in recent years Islamic financial developments apply globally, for example to Germany. The author is interested in the reality of Islamic finance and its potential existence in non-Muslim environments. In much of the extant literature, studies consider a theoretical model such as: “The stability of Islamic finance”. The authors in these studies tend to focus on global Islamic banks. In the present study, the Author wants to examine the situation for a specific non-Muslim country like Germany. The second focus is to find out whether there is a relationship between the number of Muslims in Germany and the need for Islamic financial products. A detailed view of market entry and critical key indicators are analysed. The current laws and their handling by Islamic banks will additionally be examined. To complete this research, a comparison with a country with more real market experiences in the field of Islamic finance, such as Turkey, will be undertaken. Are there certain Islamic, Jewish, Christian Practices and Aims for Business? With this background, starting from the year 2000, the author observed and investigated economics sources. Here, the concrete issue of Islamic finance became more and more compelling. The development of Islamic finance in recent decades is characterized by increasing, worldwide market share. With the most recent crisis of 2008, Islamic finance strengthened its global attention. This was due to profit increases throughout the period of crisis.

How "helal" can an Islamic Bank be? The Islamic Finance in Germany and Turkey

How
Author: Mehmet Cosgun
Publisher: GRIN Verlag
Total Pages: 23
Release: 2014-07-02
Genre: Business & Economics
ISBN: 3656687862

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Wissenschaftlicher Aufsatz aus dem Jahr 2014 im Fachbereich VWL - Finanzwissenschaft, ( Mendel-Universität Brünn ), Sprache: Deutsch, Abstract: In a world of global finance, the cash flows are linked. So this applies also to the emerging Islamic financial institutions. Due to this background, I would like to dedicate myself to the important principle of Islamic finance, especially in Germany and Turkey. The Islamic finance is an alternative to conventional finance. The Islamic finance is open to the whole humanity. By theirs sparing and careful action the Islamic finance could claim his market interest and need in the global economy since its founding ́s in the 1970 ́s. The world population exists to approximately 23% of Muslims. By Not-serving this population group by conventional bank houses and there special needs, further rising of Islamic finance houses becomes likely. The economies in Islamic finance only allowed to trade and work with "halal" money. This means that the money from trade with forbidden substances is not "Helal”. As practical examples mostly alcohol, pork etc. are listed. But what is the concrete meaning of “Helal”? “Helal” means to be in line with ALLAH and his Kuran and to avoid “Haram” ways. The Islamic regulations gives corridors for which is economically spoken the frame for doing business. These “Helal”-frames are delivering corridors not only for economy, it is also valid for the Law regulation, society and government for a region, a nation, a continent and a global union? For the better understanding and the implementing in my working of “Islamic Finance” it is crucial to use only my knowledge of Islam and deflecting it on my economic research. The first critic; understands the pure regulations of “Helal” chained out of the Kuran, because understanding of this times descents and transforming on our current time and case is a highly responsible, complex topic. The second critic; there is no complete “Helal” system implemented for all areas of Life. If we look on the field of Law, we found the most developed area so far, but in my personal view, we have even here negative movements, mostly titled with the term “shariah”, which are leading humans on “Haram” ways. I want to analyze the question of "helal" to pursue operational and real field experiences within finance world.

Case Studies in Islamic Banking and Finance

Case Studies in Islamic Banking and Finance
Author: Brian Kettell
Publisher: John Wiley & Sons
Total Pages: 193
Release: 2011-08-15
Genre: Business & Economics
ISBN: 0470978015

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Based around 13 individual cases, this book will stimulate discussion and develop the reader's understanding of Islamic finance by contrasting their existing theoretical knowledge against practical examples.

Islamic Banking and Finance in Europe: the Case of Germany and United Kingdom

Islamic Banking and Finance in Europe: the Case of Germany and United Kingdom
Author: Muhammad Ashfaq
Publisher: Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften
Total Pages: 0
Release: 2017
Genre: Banking law
ISBN: 9783631733219

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Fundamentals of Islamic Economics - Islamic Banking - Islamic Finance Instruments - Risk Management in Islamic Finance - Islamic Finance in Western Europe - Islamic Banking in Germany

Islamic Finance in Eurasia

Islamic Finance in Eurasia
Author: M. K. Hassan
Publisher: Edward Elgar Publishing
Total Pages: 359
Release: 2024-01-18
Genre: Business & Economics
ISBN: 1035308703

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Providing a comprehensive account of the progress, potential and challenges facing Islamic finance in Eurasia, this prescient book explores Islamic finance’s history and development across the Asian and European continents and argues that in order for this market to continue to prosper, innovation and adaptation is a necessity.

Islamic Capital Markets

Islamic Capital Markets
Author: Kabir Hassan
Publisher: John Wiley & Sons
Total Pages: 481
Release: 2011-04-04
Genre: Business & Economics
ISBN: 0470689579

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Islamic Finance has experienced rapid growth in recent years, showing significant innovation and sophistication, and producing a broad range of investment products which are not limited to the complete replication of conventional fixed-income instruments, derivatives and fund structures. Islamic Finance represents an elemental departure from traditional interest-based and speculative practices, relying instead on real economic transactions, such as trade, investment based on profit sharing, and other solidary ways of doing business, and aims to incorporate Islamic principles, such as social justice, ecology and kindness, to create investment products and financial markets which are both ethical and sustainable. Products created according to Islamic principles have shown a low correlation to other market segments and are relatively independent even from market turbulences like the subprime crisis. Therefore, they have become increasingly popular with secular Muslims and non-Muslim investors, as highly useful alternative investments for the diversification of portfolios. In Islamic Capital Markets: Products and Strategies, international experts on Islamic Finance and Sharia'a Law focus on the most imminent issues surrounding the evolution of Islamic capital markets and the development of Sharia'a-compliant products. The book is separated into four parts, covering: General concepts and legal issues, including Rahn concepts in Saudi Arabia, the Sharia'a process in product development and the integration of social responsibility in financial communities; Global Islamic capital market trends, such as the evolution of Takaful products and the past, present and future of Islamic derivatives; National and regional experiences, from the world's largest Islamic financial market, Malaysia, to Islamic finance in other countries, including Germany, France and the US; Learning from Islamic finance after the global financial crisis; analysis of the risks and strengths of Islamic capital markets compared to the conventional system, financial engineering from an Islamic perspective, Sharia'a-compliant equity investments and Islamic microfinance. Islamic Capital Markets: Products and Strategies is the complete investors' guide to Islamic finance.

Turkish Economy

Turkish Economy
Author: Ahmet Faruk Aysan
Publisher: Springer
Total Pages: 425
Release: 2018-03-30
Genre: Political Science
ISBN: 3319703803

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This book scrutinizes the last 15 years of exceptional growth in the Turkish economy, and presents a model for sustainable ongoing growth that has particular implications for other key emerging economies. The growth of the Turkish economy in the 2000’s was based on two integrated fundamental factors: fixing deteriorating dynamics and implementing further reforms to stimulate economic activity. This basic formula led to pleasing rates of economic growth, fuelled particularly by domestic private investments along with revived consumption and exports. Driven by political stability established by single party governments in the post-2002 period, an improved economic outlook helped Turkey enjoy record levels of foreign investment, adding momentum to its growth story. The Turkish experience in the post-crisis period implies that in order to achieve a fast and - more importantly - sustainable onward growth, the economy needs a new generation of structural reforms that simultaneously heal fragility and vitalize economic activity. The papers in this book offer professional assessments and assistance - especially for policymakers, and present a new direction upon which the Turkish economy - and emerging markets - can progress successfully for a further 15 years.

Islamic Fintech

Islamic Fintech
Author: Sara Sánchez Fernández
Publisher: Routledge
Total Pages: 132
Release: 2021-03-29
Genre: Business & Economics
ISBN: 1000367789

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The implementation of new technologies is expected to boost the development of Islamic Finance by increasing accessibility to banking and other financial services in Islamic communities and democratizing access to investment opportunities. At the same time, new technologies will increase financing opportunities and facilitate asset management for Sharia-compliant businesses. This collection of essays from selected experts in the field comprise some of the most topical issues on Islamic Fintech, combining a business focus with legal insights. The book takes as a point of departure the role that Islamic Fintech can play in promoting sustainability. The social vision of welfare improvement and justice is already embedded in Sharia’s economic rules, which makes Islamic Finance particularly well suited to bridge the gap between sustainability and funding. Although it is not without challenges for the industry, technology will help unleash its potential. With a holistic approach to Islamic Fintech, the contributing authors address the application of new technologies to Islamic Finance, including robo-advisory, crowdfunding and digital ledger technology (both in the issuance of bitcoin and the registration of securities in tokenized form) and in certain sectors such as takaful (takaful-tech) and health (e-health). Finally, they explore the challenges posed by anti-money laundering (‘AML’) in the specific realm of Islamic Fintech. The book combines theoretical analysis with a practical focus, both through case studies and directly through the experiences of leading entrepreneurs. In addition, it provides insights on legal and regulatory aspects, which are key in a field that is still in its infancy and needs support from lawmakers and regulators. It is, thus, a reference for academics, legal practitioners, policymakers, entrepreneurs and the Islamic Finance community.