Managing Fund Flows, Risks and Derivatives: Application in Islamic Institutions (Treasury)

“The unique character of Shariah gives rise to a complex Islamic market that is an asset market and not simply a money market. This requires the Islamic banker to consider the commercial, as opposed to the monetary aspects of transactions. Within this context, the book deals with the issues of asset liability management, cash flow management, and “in the bank” departmental integration by introducing asset concepts. Hedging concepts and approaches used in the Islamic market are discussed in detail and common hedging problems are addressed. The focus is to understand how a decision to apply Shariah principles causes profound change in the philosophy and methodology of Islamic treasury and hedging.”