Islamic Banking and Finance Review (IBFR) 2019-12-31T09:01:21+01:00 Open Journal Systems <p>Islamic Banking and Finance Review is a peer review international journal which is published annually. The journal aims to be a major forum to produce publications on both contemporary and future dimensions of Islamic Banking and Finance globally.</p> Awareness and Knowledge of Fintech among Islamic Banking and Finance Students in Pakistan 2019-12-31T08:47:51+01:00 Hassnian Ali Mohammad Zaki Zain Hadia Saqib Hashmi Muhammad Hassan Abbas Muhammad Waqas Shahid Usman Tariq <p>Purpose: The paper aims to investigate the level of awareness of Islamic banking and finance students about the concepts and terms frequently used in Fintech. The impact of the demographics of respondents on their level of knowledge about Fintech is also analyzed.<br>Design/methodology/approach: Descriptive statistics are used to analyze the level of awareness and knowledge of students regarding Fintech. Multiple linear regression method is used to analyze the impact of the demographics of respondents on their level of awareness and knowledge about the concepts and terms used in Fintech.<br>Findings: Fintech emerged around the globe and reached its peak in recent years. The students of Islamic banking and finance industry cannot overlook this phenomenon and they need to be aware of this innovative and emerging industry.<br>Originality/Value: This paper draws the attention of academia including students, researchers, pen wielders and also of the practitioners of Islamic finance industry towards the dynamic area of Fintech and its applications that has not received enough attention so far. Thus, academia and industry may adopt an appropriate strategy regarding this issue.</p> 2018-12-12T00:00:00+01:00 Copyright (c) 2018 Islamic Banking and Finance Review (IBFR) Legal and Corporate Governance Framework for Islamic Banks in Pakistan 2019-12-31T08:59:47+01:00 Dr. Mohammad Ayaz Dr. Hassan Shakeel Shah Dr. Jibrail Bin Yusuf <p>As custodians and trustees of public money, Islamic banking institutions (IBIs) must have a good reputation that cannot be achieved without a strong legal and corporate governance (CG) framework. The base for good governance inside financial institutions including IBIs in any jurisdiction is provided by the legal framework of the country, since the respective roles and responsibilities of corporate governance players inside IBIs are derived from the established law. In this study, the general legal and corporate governance framework for the banking sector in Pakistan is discussed. It is found that unfortunately the Islamic banking sector, which has great potential, is functioning without a proper legal cover which is a challenge for good governance as well as transaction implementation of IBIs, especially for the unilateral promises by the counterparties and hence for their soundness in future. Therefore, proper law must be promulgated, wherein all the respective roles and responsibilities of different CG players are declared mandatory, followed by punitive consequences in instances of non-compliance by them. Also, all the transactions should be given legal validation, which should resolve the issue of breaching any of the different contracts by the counterparties, especially their unilateral promises.</p> 2018-12-12T00:00:00+01:00 Copyright (c) Exploring the Scope and Socio-Economic benefits of Bay’ Salam for the Agriculture Sector in Pakistan 2019-12-31T09:00:11+01:00 Naeem Ahmed Dr. Muhammad Tahir Mansoori Dr. Atiquzzafar Khan <p>The socio-economic conditions of a vast majority of small farmers in developing and poor countries are miserable. There are various factors which hurt poor farmers like the shortage of water, costly seeds and fertilizers, poor patronage from the government, olden cultivation techniques, illiteracy and lack of training. These problems no doubt hurt the farmers at large. The lack of credit is one of the most serious issues which not only impedes the agricultural performance but also the welfare of farmers. The existing credit schemes for farmers in Pakistan have many demerits. Among them are exploitative conditions, interest-based, access-difficult and cumbersome procedures. Islam, in the form of Bay’s Salam, provides an alternative credit system that is not only much easier but also free from exploitation and many ills of conventional forms of credit. With the exception of the last century, Bay’ Slam had been practiced widely in many Muslim countries and had served the poor farming communities effectively. This paper analyses the potential and scope of Bay’ Salam as a substitute to the existing forms of agricultural credit using secondary and primary data.</p> 2018-12-12T00:00:00+01:00 Copyright (c) 2018 Islamic Banking and Finance Review (IBFR) Islamic Finance Education 2019-12-31T09:00:35+01:00 Mohamed Aslam Haneef <p>The numerical global growth rates of Islamic Finance (IF) have been impressive over the last two decades, albeit a slight slow-down in recent years. As a response to this impressive growth rate, Islamic Finance education boomed during the last decade, with the aim of filling the apparent demand for graduates in Islamic Finance. This presentation will shed light on two specific issues. Firstly, what is the actual demand for human resource in Islamic Finance and is there really an excessive demand for Islamic Finance graduates? Secondly, is there a misallocation of resources between curriculum requirements of a standard Islamic Finance curriculum and the structure of academic talent teaching Islamic Finance? The presentation will share findings from the Malaysian Islamic Finance Education Report 2016 that highlights areas of concern. With the tremendous growth of Islamic Finance education in Pakistan in recent years, it is hoped that these findings will lead to a healthy debate about the curriculum structure and human resource planning that should be given serious attention by all stakeholders involved in Islamic Finance education.</p> 2018-12-12T00:00:00+01:00 Copyright (c) 2018 Islamic Banking and Finance Review (IBFR) Islamic Banking Financing Effect on Growth 2019-12-31T09:00:58+01:00 Afia Mushtaq Noman Arshed Dr. Rukhsana Kalim <p>The study is an attempt to explore the transmission channel through which development in Islamic banking could lead to economic growth. In order to determinethis transmission mechanism, the estimation based Vector Error Correction model (VECM) is used. This study has tested Murabaha, Ijarah and Diminishing Musharaka as proposed Islamic financial products because of their majority share in Islamic financing. This study has tested two co-integrated systems in the VECM model. The first system tests the effect of an increase in financing in Islamic banking products on the net financing of Islamic banks and the second system tests the effect of net financing of Islamic banks on economic growth. The results indicate that the financing done by Islamic banking products positively affects economic growth in Pakistan. Also, the net financing of Islamic banks is significantly based on financing in Ijarah and Murabaha. Hence, this study highlights the growth potential of Islamic banking which is gaining shares in the overall banking system of Pakistan.&nbsp;</p> 2018-12-12T00:00:00+01:00 Copyright (c) 2018 Islamic Banking and Finance Review (IBFR) Impact of Corporate Governance Characteristics on Corporate Social Responsibility Disclosure Index – A Case Study of Islamic Banks in Pakistan 2019-12-31T09:01:21+01:00 Mariam Parveen Farah Yasser Dr. Talat Hussain <p>The relationship between corporate governance characteristics and Corporate Social Responsibility (CSR) disclosure was analyzed empirically in this study. For this purpose, data was collected from Islamic banks in Pakistan for the time period spanning from 2009-2016. Regression analysis was used along with descriptive statistics, correlation analysis and incremental regression analysis. The study found significant findings in favor of hypotheses regarding CEO duality, profitability and board independence for Islamic banks. All the empirical findings concluded that the determinants of corporate governance have a momentous influence on the reporting of CSR of Islamic banks in Pakistan. The outcomes of this research are valuable for policy makers and managers for the evaluation of the existing principles of corporate governance structure by considering its influence on CSR disclosure in the Islamic banking sector.</p> 2018-12-12T00:00:00+01:00 Copyright (c) 2019 Islamic Banking and Finance Review (IBFR)