The art of RF (riba-free) Islamic banking and finance

Preface to the Second EditionPreface: My Story with RF (Islamic) Banking and Finance in AmericaAcknowledgmentsAbout the Book CoverThe Faith-Based Judeo-Christian- Islamic Foundation of the Prohibition of Interest and the RF (Riba-Free) Banking SystemISLAM: THE ADDITIONAL AND CLOSING LINK IN THE CHAIN OF JUDAISM AND CHRISTIANITYAN INTRODUCTION TO THE JUDEO-CHRISTIAN-ISLAMIC FOUNDATIONS OF FAITHThe BookThe People of the FaithLoansUsury/lnterestTHE JUDAIC POSITION ON THE CHARGING OF RIBIT (INTEREST): MONEY, LENDING, AND INTEREST IN THE TORAH AND THE JEWISH TRADITIONLoans to the PoorLending to Non-Jews with InterestBusiness FinancingTHE CHARGING OF MBIT (INTEREST) IN THE ROMAN CATHOLIC TRADITION: THEN AND NOWLending to the PoopPosition of the Contemporary Roman Catholic Church on Allowing the Charging of InterestTHE CHARGING OF RIBIT (INTEREST) IN THE TRADITION AND TEACHINGS OF THE EVANGELICAL CHRISTIAN CHURCHLending tn the PoorLending to the EnemyBusiness Financing and Relaxation of the Rules of Prohibiting the Charge of InterestTHE PROHIBITION OF CHARGING OF RIBIT/RIBA CINTEREST/USURY) IN ISLAMThe Development of the Universal RF System in IslamThe Concept of God Owning EverythingDeveloping the Institution of Giving (Zakah) as a Required Islamic Ritual (Like Prayers)Behavioral Guidelines and the Discipline of GivingBusiness FinanceTypes of RibaRiba al-JahiliyahRiba al-FadlThe Law (Shari'aa) Prohibits Deceptive and Speculative Activities in Business Transactions (Gharar)The RF Valuation Disciplines of Commodity Indexation and Marking to the MarketDEVELOPMENT OF THE MARK-TO-THE-MARKET RULERIBA-FREE BUSINESS TRANSACTION MODELSCost-Plus (Murabaha)Leasing (ljara) RulesThe RF Legal Foundation on LeasingProcessJoint Venture (Musharaka) Direct Investment/Equity Ownership or PartnershipMoney Management (Mudaraba)Financing Future Production (Ba'i ul Salam)REVIEW QUESTIONSThe Law: The Judeo-Christian-Islamic Shari'aaTHE LAW: SHARI'AASources of Shari'aaThe Qur'aanThe Way of Life (Sunnah) of the ProphetThe Science and Foundation of Scholarly Research, or "Usui Ul Fiqh"Performing Scholarly Research to Develop and Pass Religious Edicts and Rulings: The Process of Issuing a Fatwa (An Edict)The Ultimate Intent and Goals of the Law (Shani'aa): Maqasid Al Shari'aaTHE SHARI'AA BOARD IN AN RF (ISLAMIC) BANK OR FINANCE COMPANYThe Role of the Shari'aa BoardDuties of the Shari'aa Board at the RF BankApproaches Used to Appoint Shari'aa BoardsConcerns of Western Central Bankers and Bank Regulators Regarding Shari'aa BoardsTHE DEVELOPMENT OF RF SCHOLARS AND COMPLIANCE COMMITTEES FOR RF FINANCE INSTITUTIONS IN THE TWENTY-FIRST CENTURYThe Central Bank and the Regulatory Shari'aa Compliance CommitteeMoney and Its Creation: The U.S. Federal Reserve System (Central Banks) and Interest RatesTHOSE WHO "MAKE" MONEY AND OTHERS WHO "EARN" MONEYWhat Is Money?The History of MoneyFiat (Paper) MoneyAmerican Currency before the Federal Reserve SystemTHE FEDERAL RESERVE HOARD OF THE UNITED STATES OF AMERICA,Function of the Federal ReserveStructure of the Federal Reserve Board (America's Central Bank)Who Owns the Federal Reserve Bank?Credit Creation in the Modern Banking System — The Money Multiplier ConceptA BRIEF HISTORY OF THE BRETTON WOODS AGREEMENTGOLD: THAT AMAZING METALGold Reserves in the WorldThe History of Gold Markets and PricesSetting the Market Price of Gold: Gold Price FixingThe Fed Fund Interest Rates Setting Regime: The Taylor Rule,,,Real and Nominal Interest RateThe Fiat Money EconomyThe Velocity of Money Concept and the Riba-Based Monetary Principles The U.S. Dollar's Role as an International Reserve Currency and the Developing Nations (Also Called Less Developed Nations)Towards an RF Monetary Discipline: The RF Commodity Indexation DisciplineTHE CYCLICAL NATURE OF THE FIAT MONEY ECONOMYTHE PROHIBITION OF RIBA/RIBITReason for ProhibitionApplication of the RF Law Using the RF Commodity Indexation DisciplineToward an RF Monetary Theory and DisciplineDevelopment of an RF Monetary System to Develop a Fair RF Pricing DisciplineA Historic Review of the Definition of Money and Monetary Discipline According to the Judeo-Christian-lslamic Shari'aa Law by Many RF Scholars ANALYSIS OF PRICES OF HOMES, COMMODITIES, AND STOCK MARKETS IN THE ONITED STATES USING THE COMMODITY INDEXATION DISCIPLINEHomes in America,Price of CoalPrice of Crude OilPrice of Natural GasPrice of RiceA PROPOSED BEGINNING OF A NEW ERA THAT OSES THE RF MONETARY DISCIPLINECivility and Social Responsibility of the RF Ranking SystemTHE JUDEO-CHRISTIAN-ISLAMIC VALUES: CIVILITY, MORALITY, AND SOCIAL RESPONSIBILITYTHE VISION OF AN IDEAL FAITH-BASED JUDEO-CHRISTIAN-ISLAMIC SOCIETYNEW TRENDS THAT CAPTURED THE IMAGINATION OF THE PAGANS OF THE ARADIAN PENINSULA — LESSONS TO LfARNfflOMELEMENTS OF THE RF ECONOMIC SYSTEMProductionDistributionConsumptionTHE RF JUDEO-CHRISTIAN-ISLAMIC SYSTEM AND DUSINESS ETHICSThe RF Market SystemThe RF Management EthicsJustice and Fairness on Both Sides: The RF Bank and the CustomerBANKING AND INVESTMENT BANKINGVALUES AND BUSINESS ETHICS OF THE RF BANKER ProfessionalismConcentrationConsistencyCommitmentTHE 10 GOLDEN COVENANTS OF THE RF BANKERTHE RF BANKING DISCIPLINE: WHERE DO WE START AND HOW DO WE REALIZE THE DREAM?The Conventional Riba-Based Banking SystemTHE BANKING SYSTEM OF THE UNITED STATESTYPES OF BANKING SERVICES IN THE UNITED STATESNational BanksState BanksCredit UnionsInvestment BanksLicensing a Commercial Bank in the United StatesGOVERNMENT SUPERVISION OF THE RANKThe Office of the Comptroller of the CurrencyThe OCC's ObjectivesOCC FundingInsurance of Bank Deposits by the Federal Deposit Insurance Corporation (FDIC)U.S. BANKING REGULATIONSConsumer Compliance ManagementBoard of Directors and Management Supervision and AdministrationCompliance ProgramCompliance CommitteeDuties, Responsibilities, Authorities, and Accountability of the Compliance CommitteeInternal ControlsOrganizational StructurePolicies and ProceduresTrainingCompliance Audit FunctionSUMMARY OF FEDERAL BANKING REGULATIONS IN THE UNITED STATESRegulation B: Equal Credit OpportunityFair Lending PolicyGeneral Policy StatementAdvertisingApplications and Information GatheringApplication Processing and Evaluation and Loan Application Second Review ProcessCredit ExtensionNotificationRecord RetentionGovernment Monitoring ProgramFair Lending TrainingRegulation C: Home Mortgage Disclosure Act (HMDA)Purpose of the ActReporting RequirementsDenial Reasons and Other DataDisclosureTraining and Oversight ResponsibilitiesRegulation Q: Prohibition against Payment of Interest on Certain Deposit Account TypesRegulation D: Reserve Requirements for Depository Institutions (Banks)Regulation 0: Loans to Bank insidersRegulations P and SBOX 8.1 A SAMPLE PRIVACY LETTER SENT TO ALL CUSTOMERS AT LEAST ONCE A YEARRegulation Z: Truth in Lending Act (TILA)Regulation ВВ: Community Reinvestment Act (CRA)Regulation DD: Truth in Savings ActFair Credit Reporting ActAnti-Money Laundering (AML) ProgramBank Examination fop Safety and Soundness by Bank RegulatorsBOX 8.2 ООС REQUEST LETTER: FROM THE ООС OFFICE TO THE BANK'S PRESIDENTAsset QualityFinancial PerformanceBankruptcy LawsComparing RF Banking and Conventional Riba-Based Banking: What Is the Difference?THE RF BANKING BRAND: HISTORY, DEVELOPMENT, AND STAGES OF GROWTHAN OVERVIEW OF RF RANKINGMisnomers in RF BankingWhat Is RF (Islamic) Banking?RF (Islamic) Banking in the Twentieth CenturyRF (ISLAMIC) BANKING MODELSThe Cost-Plus (Murabaha) ModelFinancial Engineering and the Law (Shari'aa)The Lease-to-Own Models (Al-ljanah Wal Iqtina or Al-ljanah Wal Tamaluk)The Al-Baraka Shari'aa-Compliant ModelThe South Asian Diminishing Musharaka Shani'aa-Compliant ModelApplication of the South Asian Shapi'aa-Compliant ModelCOURT CHALLENGES TO THE SHARI'AA-COMPLIANT "CONTRACT FITTING" USED RY SOME ISLAMIC FINANCE APPROACHESCases Litigated in the U.K. CourtsResolutions Taken by "Islamic" Banks to Avoid Lengthy TrialsCONCLUSIONRF Banking Model for the Twenty-First Century: The LARIBA RF Model: Developing the Shari'aa-Based Finance ModelTHE PUZZLE AND THE CHALLENGE OF DEVELOPING RF RANKING AND FINANCINGLegal and Financial CategoriesParticipants in the Development of Modern RF BankingMuslim PuritansMonetarists,,,Religious LeadersPopular Thought Leaders in the Muslim WorldLocal Community Religious Leaders or ImamsCommunity LeadersAcademics and University Professors of Economics and FinancePoliticiansThe MediaBank RegulatorsProfessionals Who Serve and/or Benefit from the New Islamic Banking IndustrySharfria ScholarsAttorneysRiba BankersOrganizers for Seminars, Industry Group Conferences, and Training ProgramsRF Banking Consumers and Potential UsersTHE SHARI'AA LAW AND THE LAWS OF THE LANDDeveloping the Art of RF (Islamic) Banking and FinanceThe Approach Used to Develop the Art of Islamic RF BankingMAJOR OBJECTIONS OF RF SHARI'AA SCHOLARS TO THE CONVENTIONAL RIBA-BASED FINANCE CONTRACTBUILDING THE SHARI'AA-BASED LARIBA RF FINANCE MODELThe Unique Features of the LARIBA Shari'aa-Based RF Finance ModelThe Stages Used to Implement the Shari'aa-Based LARIBA Model of FinancingFormulating the Financing According to Shari'aaFatwaThe Meaning of Establishing a LienCalculation of the Economic Viability and Prudence of the InvestmentAppraising the Property or the BusinessThe Unique Features of the LARIBA SharFaa-Based ModelDocumentation of RF Financing for U.S. ComplianceThe LARIBA AgreementMonthly BillingServicing the Hnancing Facility — The LoanSources of Funds Used in RF FinancingTHE RESULTSPutting the RF Finance Movement and Discipline Together: A Step-by-Step Application of the RF Finance ProcedureLARIBA'S MISSION AND BACKGROUNDThe LARIBA RF Finance Model,Summary of the ModelThe ProcessAPPLICATION OF THE MODELSteps for Implementing the ModelThe Algorithm and Computer ProgramMortgage Finance Servicing PolicyThe Needy (Miskeen) FundLoan Documentation Philosophy and ApproachStarting an RF Bank in the United States: Acquiring and Restructuring a Troubled Bank and Operating It Riba-FreeINTRODUCTIONRIBA-BASED CONVENTIONAL FINANCING VERSUS RF FINANCINGLOOKING FOR A SUITABLE BANK TO ACQUIREMAKING HISTORY: ACQUIRING THE BANK OF WHITTIER, NAOPERATING THE FIRST RF BANK IN THE UNITED STATESOur Strategic Approach to Restructure the Bank of WhittierThe Bank Restructuring and Workout Plan: Turning the Bank AroundSpecific Action Plan and Steps Taken by Bank ManagementStrategies Designed and Steps Implemented by the New ManagementTHE STAFF AND EMPLOYEE POLICYTHE AUDIT POLICYEngagement Letter for External AuditorsAudit Response by ManagementRF Capital Markets: Developing the RF Capital Market Investment ProductsTHE CHALLENGE OF FINANCING NEW BUSINESSES AND GROWING EXISTING BUSINESSPrivate Direct InvestmentFixed-Income Debt Instruments in the Form of Riba-Based BondsGovernment OP Sovereign BondsMunicipal BondsCorporate BondsPosition of the Catholic Church on Usury (Interest) from Riba Bonds and the Church's Changing Position over limeVALUATION OF BONDS: BOND BATING AND BATING AGENCIESBonds' Pricing in the Secondary MarketImpact of Variation in Market Interest Rate Environment on Bond Market ValueLiquidity of BondsTHE RF CAPITAL MARKET AND ITS RF INSTRUMENTSRF (Asset-Based) Bonds—SukukRequirements of the Judeo-Christian-lslamic Shari'aa Law in the Issuance of SukukTRADING OF SUKUK ON SECONDARY MARKETSSupplementary RF Finance Definitions and Principles Pertaining to Sukuk TradingTrading of SukukEquity Investments According to the RF DisciplineGUIDELINES FOR RF INVESTING IN THE STOCK MARKETREVIEW QUESTIONSNOTESCase Studies: Developing the RF Banking Investment ProductsTHE INVESTMENT PYRAMIDCash and Cash EquivalentsShort-Term InvestmentsRF Bonds: Sukuk (RF Asset-Based Income Instruments that Replace Riba-Based Bonds)RF ASSET-BACKED BONDS CSUKUK)RF Mortgage-Backed Sukuk SecuritiesThe Development of a Religious Real Estate Trust RF Bond (Waqf Sukuk)The MUIS Waqf Sukuk: RF Asset-Based Bonds Used to Unlock the Value of Real Estate TrustsThe Structuring of the Singapore MUIS Waqf SukukRF Investment Discipline in StocksGuidelines for RF Investing in the Stock MarketNormalization of Various Stock Market Indexes Using the Commodity Indexation DisciplineRF Credits (Loans) in Contrast to Types of Riba-Based LoansOVERDRAFT PROTECTION FOR HOLDERS OF CHECKING ACCOONTSLINES OF CREDITWorking Capital RF Lines of CreditConstruction Financing Lines of CreditUnsecured LoansBallooning LoansAutomobile and Equipment LeasingMortgagesHome Equity Line of Credit (HELOC)Home Equity LoanReverse MortgagesCommercial BuildingsBusiness FinancingNonprofit and Religious Centers and School FinancingConstruction FinancingThe RF Approach to Handling Troubled and Nonperforming: Credits (Loans)RESOLVING THE PROBLEM OF NONPERFORMING CREDITS (LOANS)CASE STUDIESVisions for the Future of RF BankingTHE 2008 GLOBAL ECONOMIC AND FINANCIAL MELTDOWNTHE MEGA-BANKS AND FINANCIAL INSTITUTIONSTHE CULTURE UF RENTING MUNEY WITH RIBIT/RIBATHE RF LIFESTYLEThe Lifestyle of the Judeo-Chnistian-lslamic Value SystemSOME ADVICE FOR THE NEWCOMERS TO THE RF LIFESTYLERF Banking: A New Banking Brand for the Twenty-Hrst Century
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