The Financial Mediation in the Islamic and UK Commercial Law: a Comparative study
By
AL.OKAILI SAMI FAHAD
INTRODUCTION
In the European financial world, Islamic finance is becoming a reality. In 2004, the UK regulator, the Financial Services Authority approved the first Islamic Bank, the Islamic Bank of Britain. This was one of the steps to include the Islamic financial inputs into the mainstream financial markets.
One of the Islamic financial inputs into the mainstream financial markets is “The Financial Mediation”, so I would like to study this Idea in a research called: The Financial Mediation in the Islamic and UK Commercial Law: a Comparative study
Because the main concept of Islamic financial system is fairness, a similar concept to English common law is doctrine of equity.
But when search about financial mediation that means that we talk about big companies which are able to offer advice on a wide range of debt solutions and these are dependent on the needs of the individual as well as advising and not on our commercial needs. It is important first to understand that they are neither a claim management company nor a debt management company. From initial enquiry they gather as much information as possible and give simple and honest advice as to the merits of differing forms of solution and the options for dealing with debt. All of this work is with some obligations. OBJECTIVES
ILLUSTRATION OF THE MEDIATION IN THE FINANCIAL MARKETS.
ILLUSTRATION OF THE FEATURES OF THE FINANCIAL INTERMEDIARY
ILLUSTRATION OF SOME ASPECTS OF THE ISLAMIC CONCEPT OF SALE AND THEIR IMPLICATIONS FOR THE ISLAMIC FINANCIAL MARKETS …. ETC
ILLUSTRATION OF METHODS OF FINANCIAL MEDIATION.....ETC ILLUSTRATION OF THE FORMULATION OF THE HOLDING OF FINANCIAL INTERMEDIATION IN THE ISLAMIC JURIPRUDENCE AND ENGLISH COMMERCIAL LAW
Literature review
After reviewing the legal books I did not find who spoke on the topic examined in detail
Drafting research (THE FINANCIAL MEDIATION).
The research includes the following components:
Rationale for the Study, A statement to illustrate the importance of and reasons for doing such a study (THE FINANCIAL MEDIATION).
Statement of the Problem (THE FINANCIAL MEDIATION)
Overview of the study (THE FINANCIAL MEDIATION)
Methods This research indicate the variables to be studied, the particular in the Financial Markets
The project (THE FINANCIAL MEDIATION) is intended to provide the LAWYERS’ knowledge and concepts about (THE FINANCIAL MEDIATION), either in an area of interest or in a particular professional environment. Accordingly, the outline of a project may be more general and may rely more on the candidate's personal experience, rather than published material, to support the rationale for the project. Otherwise, in general terms, the proposal should follow a similar pattern to that for a thesis proposal.
PART 1: FUNDAMENTALS
PART 2: OVERVIEW FOR THE FINANCIAL MEDIATION
2.1: Conceptual & Theoretical Framework
2.2 : Some Aspects Of The Islamic Concept Of Sale & Their Implications For The Islamic Financial Markets
2.3 : Analytical Framework Of The Islamic Securities Market.
2.4 : Western Institutional Framework
2.5 Intermediation, Economic And Legal Governance And Performance
PART 3:FINANCIAL MEDIATION PART OF VITAL ISSUES IN ISLAMIC CAPITAL MARKETS
PART 4:CONTRACTUAL BASES IN FINANCIAL MEDIATION
PART 5:FINANCIAL MEDIATION & ISLAMIC COMMERCIAL LAW , FINANCIAL MEDIATION & U.K COMMERCIAL LAW
PART 6:LOAN & DEPT IN FINANCIAL MEDIATION:
6.1 :LOAN & DEPT IN ISLAMIC COMMERCIAL LAW
6.2 : LOAN & DEPT IN U.K COMMERCIAL LAW
PART 7:METHODS OF FINANCIAL MEDIATION
PART 8 : FUNDAMENTAL CONTRACT FOR FINANCIAL MEDIATION.
PART 9: SOME ACCESSORY CONTRACTS FOR FINANCIAL MEDIATION .
PART 10: APPLICATIONS & PRACTICES OF FINANCIAL MEDIATION
PART 11: FINANCIAL MEDIATION ETHICS AND NORMS
PART 12 : THE PHILOSOPHY AND FEATURES OF ISLAMIC FINANCIAL MEDIATION
PART 13:THE WAY FORWARD
& I will talk also about :
Major risks in banking
The deposit contract
Corporate control and governance
THE NEW FINANCE ERA: CHALLENGES AND OPPORTUNITIES
Current trends in the banking industry
Strengthening Financial Intermediation and Systems
New Tools and Risks in Financial Intermediation in Emerging Markets: Should Regulators Adopt New Methods
( the mediation in the financial markets)
(Stocks and bonds)
Definition of mediation and the financial market.
Distinguish it from other.
1.Broker.
2.The mediation of traditional banking.
3.business mediation .
Control over the financial markets:
The rule of financial intermediation
The legality of the holding of financial intermediation
Legality of financial intermediation in the holding of commercial law in England
The legality of the holding of financial intermediation in Islamic law
Characterization of the holding of financial intermediation
Description of the legal holding of financial intermediation Commercial English & the Islamic law
Tools of financial intermediary in Islamic jurisprudence and commercial law in England
The formulation of the holding of financial intermediation in Islamic jurisprudence and commercial law in England
Party to a contract of financial intermediation in Islamic jurisprudence and commercial law in England
The place of the holding of financial intermediation in Islamic jurisprudence and commercial law in England
Management of financial intermediary for securities in Islamic jurisprudence and commercial law in England
The order of the securities
Keeping securities
Advice on securities
Financial intermediation & Emergency contracts in the financial market
Financial intermediation & Futures contracts transactions in the financial market
Financial intermediation & Options contracts in the financial market
The salary in the contract of financial intermediation in Islamic jurisprudence and commercial law in England
Human mediator in the mediation of financial and contract obligations
The rights of the financial intermediary arising out of the contract
The rights arising from the financial intermediary law
Obligations of the financial intermediary
Financial intermediary's obligations arising from the contract
Obligations arising from the financial intermediary system
Liability arising from breach of the contract of financial intermediation
Liability arising from the work of the financial intermediary Contractual liability
Tort liability
Penalties for securities disputes in Islamic jurisprudence and commercial law in England
The responsibility of the mediator on the work of Islamic jurisprudence followed in English law
Provisions of the bankruptcy of the financial intermediary in Islamic jurisprudence and law in England
The end of the financial intermediation in Islamic jurisprudence and law in England
Financial intermediation means the mediation in the financial markets (stocks & Bonds) ,and the securities broker to discuss which is similar to a large extent the broker in Islamic jurisprudence, but differs in that it is committed to ensuring the completion of the transaction and not just bringing the two parties
This research also discusses the obligations and rights of the mediator and the Financial tools be the mediator
The term (financial mediation) may refer to an institution, firm or individual who performs intermediation between two or more parties in a financial context. Typically the first party is a provider of a product or service and the second party is a consumer or customer.
In the UK, a financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such as banks), and then that institution in turn gives those funds to spenders (borrowers). This may be in the form of loans or mortgages. Alternatively, they may lend the money directly via the financial markets which is known as financial disintermediation etc ....
Types of financial intermediary
Financial mediation is one of the most salient features of the world economies and financial intermediary who is mediating between businesses and customers buyers. The companies specialized in the trade of shares may be specialized companies, bonds and all of the shares and bonds, called the law of trade and financial papers relating to the implementation of already purchase orders, sales
And functions of five major financial intermediaries:
(1) to facilitate the process of obtaining payment for goods and services, for example through the use of checks;
(2) to support the financial system and the provision of scale would allow for individuals to invest in a range of assets, which would be more difficult in the absence of financial intermediaries;
(3) to ease restrictions on the liquidity
Understanding main points
Information search
BIBLIORAPHY :
Understanding Islamic Finance (The Wiley Finance Series) by Muhammad Ayub
Al-Suwailem, S., (1995). Does Venture Capital Financing Make a Difference ? Doctoral Dissertation, Washington University in St. Louis.
Allais, M., (1987). “Credit Mechanism and its Implications”, in G. Feiwel, ed., Arrow and the Foundation of the Theory of Economic Policy, New York: NY University Press.
Mishkin, F., (1995). The Economics of Money, Banking and Financial Markets, New York: Harper Collins.
Palgrave Dictionary of Money and Finance, (1994) (Newman, P., M. Mulgate and J. Eatwell,eds.) , London: McMillan Press,
Phillips, Ronnie (1995). The Chicago Plan and the New Deal Banking Reform, New York: M. E. Sharpe.
Pierce, J., (1991). The Future of Banking, New Haven: Yale University Press.
Financial Intermediation in an Islamic Economy by
Sami Ibrahim Al-Swailim
Economic Consultant,
Research Center, Al Rajhi Banking and Investment Corp.
Abstract. This paper examines the nature of bank financial intermediation in an Islamic economy. It concludes that for such intermediation to be optimal, is should be based on bank's agency relationship (e.g. wakalah, mudarabah, musharakab) with both sides: savers (surplus units) and businessmen (deficit units). In theory, such model of banking achieves an optimal level of efficiency and profitability. In comparison, traditional model of banking (based on debt on both sides) is more vulnerable to disturbances, and attains a lower level of profitability. The common model of existing Islamic banks (based on murabaha on the asset side) on the other hand, is less efficient than the proposed model. The paper also compares Islamic intermediation with the ordinary trading, and outlines the differences between them.
Financial intermediation in Europe
TERMS were firmly on the European economic agenda in the 1990s: financial market integration and European
Contemporary financial intermediation
This book bring a unique analytical approach to the subject of banks and banking . They expand the scope of the typical bank management course by addressing all types of deposit-type financial institutions and by explaining the why of intermediation rather than simply describing institutions, regulations, and market phenomenon. This analytic approach strikes at the heart of financial intermediation by explaining why
financial intermediaries exist and what they do. Specific regulations, economies, and policies will change.
ISLAMIC FINANCIAL INTERMEDIATION:
ECONOMIC AND PRUDENTIAL CONSIDERATIONS.
Patrick Honohan
Development Research Group and Financial Sector Strategy and Policy Department
The World Bank
Financial Intermediation in Muslim Community: Issues and Problems,
Alomar, Ibrahim (2006): Financial Intermediation in Muslim Community: Issues and Problems. Unpublished
Islamic Finance and Economic Development
Edited by Mr. Munawar Iqbal and Ausaf Ahmad
Understanding Islam Finance :A Study Of The Securities Market In An Islam Framework, M.A. Mannan, Research Division
QUESTIONS:
(Q 1) In your opinion, to what extent do you think does the Financial intermediation in Europe collapsing? What is the reasons?
By
AL.OKAILI SAMI FAHAD
INTRODUCTION
In the European financial world, Islamic finance is becoming a reality. In 2004, the UK regulator, the Financial Services Authority approved the first Islamic Bank, the Islamic Bank of Britain. This was one of the steps to include the Islamic financial inputs into the mainstream financial markets.
One of the Islamic financial inputs into the mainstream financial markets is “The Financial Mediation”, so I would like to study this Idea in a research called: The Financial Mediation in the Islamic and UK Commercial Law: a Comparative study
Because the main concept of Islamic financial system is fairness, a similar concept to English common law is doctrine of equity.
But when search about financial mediation that means that we talk about big companies which are able to offer advice on a wide range of debt solutions and these are dependent on the needs of the individual as well as advising and not on our commercial needs. It is important first to understand that they are neither a claim management company nor a debt management company. From initial enquiry they gather as much information as possible and give simple and honest advice as to the merits of differing forms of solution and the options for dealing with debt. All of this work is with some obligations. OBJECTIVES
ILLUSTRATION OF THE MEDIATION IN THE FINANCIAL MARKETS.
ILLUSTRATION OF THE FEATURES OF THE FINANCIAL INTERMEDIARY
ILLUSTRATION OF SOME ASPECTS OF THE ISLAMIC CONCEPT OF SALE AND THEIR IMPLICATIONS FOR THE ISLAMIC FINANCIAL MARKETS …. ETC
ILLUSTRATION OF METHODS OF FINANCIAL MEDIATION.....ETC ILLUSTRATION OF THE FORMULATION OF THE HOLDING OF FINANCIAL INTERMEDIATION IN THE ISLAMIC JURIPRUDENCE AND ENGLISH COMMERCIAL LAW
Literature review
After reviewing the legal books I did not find who spoke on the topic examined in detail
Drafting research (THE FINANCIAL MEDIATION).
The research includes the following components:
Rationale for the Study, A statement to illustrate the importance of and reasons for doing such a study (THE FINANCIAL MEDIATION).
Statement of the Problem (THE FINANCIAL MEDIATION)
Overview of the study (THE FINANCIAL MEDIATION)
Methods This research indicate the variables to be studied, the particular in the Financial Markets
The project (THE FINANCIAL MEDIATION) is intended to provide the LAWYERS’ knowledge and concepts about (THE FINANCIAL MEDIATION), either in an area of interest or in a particular professional environment. Accordingly, the outline of a project may be more general and may rely more on the candidate's personal experience, rather than published material, to support the rationale for the project. Otherwise, in general terms, the proposal should follow a similar pattern to that for a thesis proposal.
PART 1: FUNDAMENTALS
PART 2: OVERVIEW FOR THE FINANCIAL MEDIATION
2.1: Conceptual & Theoretical Framework
2.2 : Some Aspects Of The Islamic Concept Of Sale & Their Implications For The Islamic Financial Markets
2.3 : Analytical Framework Of The Islamic Securities Market.
2.4 : Western Institutional Framework
2.5 Intermediation, Economic And Legal Governance And Performance
PART 3:FINANCIAL MEDIATION PART OF VITAL ISSUES IN ISLAMIC CAPITAL MARKETS
PART 4:CONTRACTUAL BASES IN FINANCIAL MEDIATION
PART 5:FINANCIAL MEDIATION & ISLAMIC COMMERCIAL LAW , FINANCIAL MEDIATION & U.K COMMERCIAL LAW
PART 6:LOAN & DEPT IN FINANCIAL MEDIATION:
6.1 :LOAN & DEPT IN ISLAMIC COMMERCIAL LAW
6.2 : LOAN & DEPT IN U.K COMMERCIAL LAW
PART 7:METHODS OF FINANCIAL MEDIATION
PART 8 : FUNDAMENTAL CONTRACT FOR FINANCIAL MEDIATION.
PART 9: SOME ACCESSORY CONTRACTS FOR FINANCIAL MEDIATION .
PART 10: APPLICATIONS & PRACTICES OF FINANCIAL MEDIATION
PART 11: FINANCIAL MEDIATION ETHICS AND NORMS
PART 12 : THE PHILOSOPHY AND FEATURES OF ISLAMIC FINANCIAL MEDIATION
PART 13:THE WAY FORWARD
& I will talk also about :
Major risks in banking
The deposit contract
Corporate control and governance
THE NEW FINANCE ERA: CHALLENGES AND OPPORTUNITIES
Current trends in the banking industry
Strengthening Financial Intermediation and Systems
New Tools and Risks in Financial Intermediation in Emerging Markets: Should Regulators Adopt New Methods
( the mediation in the financial markets)
(Stocks and bonds)
Definition of mediation and the financial market.
Distinguish it from other.
1.Broker.
2.The mediation of traditional banking.
3.business mediation .
Control over the financial markets:
The rule of financial intermediation
The legality of the holding of financial intermediation
Legality of financial intermediation in the holding of commercial law in England
The legality of the holding of financial intermediation in Islamic law
Characterization of the holding of financial intermediation
Description of the legal holding of financial intermediation Commercial English & the Islamic law
Tools of financial intermediary in Islamic jurisprudence and commercial law in England
The formulation of the holding of financial intermediation in Islamic jurisprudence and commercial law in England
Party to a contract of financial intermediation in Islamic jurisprudence and commercial law in England
The place of the holding of financial intermediation in Islamic jurisprudence and commercial law in England
Management of financial intermediary for securities in Islamic jurisprudence and commercial law in England
The order of the securities
Keeping securities
Advice on securities
Financial intermediation & Emergency contracts in the financial market
Financial intermediation & Futures contracts transactions in the financial market
Financial intermediation & Options contracts in the financial market
The salary in the contract of financial intermediation in Islamic jurisprudence and commercial law in England
Human mediator in the mediation of financial and contract obligations
The rights of the financial intermediary arising out of the contract
The rights arising from the financial intermediary law
Obligations of the financial intermediary
Financial intermediary's obligations arising from the contract
Obligations arising from the financial intermediary system
Liability arising from breach of the contract of financial intermediation
Liability arising from the work of the financial intermediary Contractual liability
Tort liability
Penalties for securities disputes in Islamic jurisprudence and commercial law in England
The responsibility of the mediator on the work of Islamic jurisprudence followed in English law
Provisions of the bankruptcy of the financial intermediary in Islamic jurisprudence and law in England
The end of the financial intermediation in Islamic jurisprudence and law in England
Financial intermediation means the mediation in the financial markets (stocks & Bonds) ,and the securities broker to discuss which is similar to a large extent the broker in Islamic jurisprudence, but differs in that it is committed to ensuring the completion of the transaction and not just bringing the two parties
This research also discusses the obligations and rights of the mediator and the Financial tools be the mediator
The term (financial mediation) may refer to an institution, firm or individual who performs intermediation between two or more parties in a financial context. Typically the first party is a provider of a product or service and the second party is a consumer or customer.
In the UK, a financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such as banks), and then that institution in turn gives those funds to spenders (borrowers). This may be in the form of loans or mortgages. Alternatively, they may lend the money directly via the financial markets which is known as financial disintermediation etc ....
Types of financial intermediary
Financial mediation is one of the most salient features of the world economies and financial intermediary who is mediating between businesses and customers buyers. The companies specialized in the trade of shares may be specialized companies, bonds and all of the shares and bonds, called the law of trade and financial papers relating to the implementation of already purchase orders, sales
And functions of five major financial intermediaries:
(1) to facilitate the process of obtaining payment for goods and services, for example through the use of checks;
(2) to support the financial system and the provision of scale would allow for individuals to invest in a range of assets, which would be more difficult in the absence of financial intermediaries;
(3) to ease restrictions on the liquidity
Understanding main points
Information search
BIBLIORAPHY :
Understanding Islamic Finance (The Wiley Finance Series) by Muhammad Ayub
Al-Suwailem, S., (1995). Does Venture Capital Financing Make a Difference ? Doctoral Dissertation, Washington University in St. Louis.
Allais, M., (1987). “Credit Mechanism and its Implications”, in G. Feiwel, ed., Arrow and the Foundation of the Theory of Economic Policy, New York: NY University Press.
Mishkin, F., (1995). The Economics of Money, Banking and Financial Markets, New York: Harper Collins.
Palgrave Dictionary of Money and Finance, (1994) (Newman, P., M. Mulgate and J. Eatwell,eds.) , London: McMillan Press,
Phillips, Ronnie (1995). The Chicago Plan and the New Deal Banking Reform, New York: M. E. Sharpe.
Pierce, J., (1991). The Future of Banking, New Haven: Yale University Press.
Financial Intermediation in an Islamic Economy by
Sami Ibrahim Al-Swailim
Economic Consultant,
Research Center, Al Rajhi Banking and Investment Corp.
Abstract. This paper examines the nature of bank financial intermediation in an Islamic economy. It concludes that for such intermediation to be optimal, is should be based on bank's agency relationship (e.g. wakalah, mudarabah, musharakab) with both sides: savers (surplus units) and businessmen (deficit units). In theory, such model of banking achieves an optimal level of efficiency and profitability. In comparison, traditional model of banking (based on debt on both sides) is more vulnerable to disturbances, and attains a lower level of profitability. The common model of existing Islamic banks (based on murabaha on the asset side) on the other hand, is less efficient than the proposed model. The paper also compares Islamic intermediation with the ordinary trading, and outlines the differences between them.
Financial intermediation in Europe
TERMS were firmly on the European economic agenda in the 1990s: financial market integration and European
Contemporary financial intermediation
This book bring a unique analytical approach to the subject of banks and banking . They expand the scope of the typical bank management course by addressing all types of deposit-type financial institutions and by explaining the why of intermediation rather than simply describing institutions, regulations, and market phenomenon. This analytic approach strikes at the heart of financial intermediation by explaining why
financial intermediaries exist and what they do. Specific regulations, economies, and policies will change.
ISLAMIC FINANCIAL INTERMEDIATION:
ECONOMIC AND PRUDENTIAL CONSIDERATIONS.
Patrick Honohan
Development Research Group and Financial Sector Strategy and Policy Department
The World Bank
Financial Intermediation in Muslim Community: Issues and Problems,
Alomar, Ibrahim (2006): Financial Intermediation in Muslim Community: Issues and Problems. Unpublished
Islamic Finance and Economic Development
Edited by Mr. Munawar Iqbal and Ausaf Ahmad
Understanding Islam Finance :A Study Of The Securities Market In An Islam Framework, M.A. Mannan, Research Division
QUESTIONS:
(Q 1) In your opinion, to what extent do you think does the Financial intermediation in Europe collapsing? What is the reasons?
