An introduction to Islamic finance / Muhammad Taqi Usmani.

Includes bibliographical references (pages 117-118) and index.

Machine generated contents note: Some Preliminary Points -- 1. Belief in Divine Guidance -- 2. The Basic Difference Between Capitalist and Islamic Economy -- 3. Asset-backed Financing -- 4. Capital and Entrepreneur -- 5. Present Practices of Islamic Banks -- Chapter 1. Musharakah -- 1. Introduction -- 2. The Concept of Musharakah -- 3. The Basic Rules of Musharakah -- 3.1 Distribution of Profit -- 3.2 Ratio of Profit -- 3.3 Sharing of Loss -- 3.4 The Nature of the Capital -- 3.5. Management of Musharakah -- 3.6. Termination of Musharakah -- 3.7. Termination of Musharakah without Closing the Business -- 4. The Concept of Mudarabah -- 4.1. Business of the Mudarabah -- 4.2. Distribution of the Profit -- 4.3. Termination of Mudarabah -- 5. Combination of Musharakah and Mudarabah -- 6. Musharakah and Mudarabah as Modes of Financing -- 6.1. Project Financing -- 6.2. Securitization of Musharakah -- 6.3. Financing of a Single Transaction -- 6.4. Financing of the Working Capital -- 6.5. Sharing in the Gross Profit Only -- 6.6. Running Musharakah Account on the Basis of Daily Products -- 7. Some Objections to Musharakah Financing -- 7.1. Risk of Loss -- 7.2. Dishonesty -- 7.3. Secrecy of the Business -- 7.4. Clients' Unwillingness to Share Profits -- 8. Diminishing Musharakah -- 8.1. Diminishing Musharakah for Carrying Business of Services: -- 8.2. Diminishing Musharakah in Trade: -- Chapter 2. Murabahah -- 1. Introduction -- 2. Some Basic Rules of Sale -- 2.1. Bai' Mu'ajjal (Sale on Deferred Payment Basis) -- 3. Murabahah -- 3.1. Murabahah as a Mode of Financing -- 4. Basic Features of Murabahah Financing -- 5. Some Issues Involved In Murabahah -- 5.1. Different Pricing for Cash and Credit Sales -- 5.2. The Use of The Interest-Rate as a Benchmark -- 5.3. Promise to Purchase -- 5.4. Securities Against Murabahah Price -- 5.5. Guaranteeing the Murabahah -- 5.6. Penalty of Default -- 5.7. An Alternative Suggestion -- 5.8. No Roll-Over in Murabahah -- 5.9. Rebate on Earlier Payment -- 5.10. Calculation of Cost in Murabahah -- 5.11. Subject-Matter of Murabahah -- 5.12. Rescheduling of Payments in Murabahah -- 5.13. Securitization of Murabahah -- 5.14. Some Basic Mistakes in Murabahah Financing -- 6. Conclusions -- Chapter 3. Ijarah -- 1. Introduction -- 2. Basic Rules of Leasing -- 3. Determination of Rental -- 4. Lease as a Mode of Financing -- 4.1. The Commencement of Lease -- 4.2. Different Relationships of the Parties -- 4.3. Expenses Consequent to Ownership -- 4.4. Liability of the Parties in Cases of Loss to the Asset -- 4.5. Variable Rentals in Long-Term Leases -- 4.6. Penalty for Late Payment of Rent -- 4.7. Termination of Lease -- 4.8. Insuranceof the Assets -- 4.9. The Residual Value of the Leased Asset -- 5. Sub-Lease -- 6. Assigning of the Lease -- 7. Securitization of Ijarah -- 8. Head-Lease -- Chapter 4. Salam and Istina' -- 1. Introduction -- 1.1. Meaning of Salam -- 1.2. Conditions of Salam -- 2. Salam as a Mode of Financing -- 2.1. Some Rules of Parallel Salam -- 3. Istisna' -- 3.1. Difference Between Istisna' and Salam -- 3.2. Difference Between Istisna' and Ijarah -- 3.3. Time of Delivery -- 4. Istisna' as a mode of financing -- Chapter 5. Islamic Investment Funds -- 1. Introduction -- 2. Equity Fund -- 2.1. Conditions for Investment in Shares -- 3. Ijarah Fund -- 4. Commodity Fund -- 5. Murabahah Fund -- 6. Bai'-al-dain -- 7. Mixed Fund -- Chapter 6. The Principles of Limited Liability -- 1. Introduction -- 1.1. Waqf -- 1.2. Baitul-Mal -- 1.3. Joint Stock -- 1.4. Inheritance under Debt -- 1.5. The Limited Liability of the Master of a Slave -- Chapter 7. The Performance of Islamic Banks -- Selected Bibliography -- Index.