Purpose–The paper aims to gain an insight into the risk management tools practised in
Islamic and commercial banks in Malaysia, and selected Islamic banks outside Malaysia …

Sharia-compliance is the raison d'etre of Islamic banks. All of their instruments and activities
should be based on sharia principles, which unfortunately exposes them to greater risks …

There is ongoing debate regarding the permissibility of financial derivatives in Islamic
banking and finance. While traditional derivative products are rejected by most Islamic …

Purpose This paper aims to compare and contrast the concept of conventional futures
contract from the Islamic law of contract perspectives. The underlying theory and practice of …

In Islamic finance, many scholars advise against the use of derivatives, which is still in its
infancy. Conventional law even voiced its objections to derivatives as early as the 17th …

Despite the widespread use of futures contracts as a risk mitigation instrument in the current
financial markets, Islamic economies commonly feel uncomfortable with it for fear of its …

Time series techniques of cointegration and weekly data covering the period from January
2001 to December 2009 were used in this study. The period of analysis was divided into two …

A general equilibrium approach is used to demonstrate that:(i) futures contracting (on
Islamically permissible commodities) is pareto-optimal over the Islamic forward contract of …

Futures and forwards contracts are considered of the main derivatives contracts, which offer
many services and benefits, namely risk management (hedging), and speculation. However …

The fluctuation of interest rate in the market has let the Islamic banks becoming more
cautious and taking a step ahead in managing good risk management practices. This is an …