Index

Abba, Raymond 14, 17, 39 Bagley, E.R.C. 84 Abdullah, N.I. 208 bai bi-thamin ajil (BBA) 177 Abraham 7, 10, 11, 13, 40, 79, 98 bai’muajjal (deferred payment) 177 Abraham, I. 6, 70, 93, 94 bai’salam (prepaid purchase) 178, 211 Abu Zahra, Muhammad 48 balance sheets of Islamic banks Accounting and Auditing Organization (stylized) 211–13 for Islamic Financial Institutions Baldwin, J.W. 56 (AAOFI) (2003) 182 Barrett, David B. 27 Addan, M.A. 120 Barrett, P.M. 141 Agha, Oliver 214 Barro, R.J. 79, 115 Ahmad, A.U.F. 118 Baumol, William 149 Ahmad, Hadrat M.T. 90 Bayt al-Mal 162, 188 Ahmad, Saima 97 Bekar, C. 151 Ahmad, Ziauddin 107 Benedict XVI, Pope 53, 125, 127, 129, Ahmed, Habib 211, 213 130–31, 133, 135, 138 Ahmed, N. 176 benevolent (benificence) loans 53, 75, Ahmed, Shaghil 200 89, 96–8, 99, 121–2, 180–81, 217 Algaoud, L.M. 157, 174, 189 Bentham, Jeremy 69, 193 Al-Harran, S.A.S. 166, 180 Berger, R. 169, 172 Ali, Abdullah Yusuf 86 Berman, H.J. 151 Alias, Tunku Alina 121 Bernanke, Ben S. 135 Al-Qardawi, Allama Yusuf 58, 119, Birnie, A. 40 120 Blackburn, Simon 76 Al-Quduri al-Baghdadi, Abu Blaydes, Lisa 110 al-Husayn Ahmad ibn Bleich, J. David 43–4, 147 Muhammad 158 Boyce, James 39 Amis, Martin 36, 109–10 Brennan, S. 136 Anwar, Muhammad 74 Brown, Gordon 4 Aquinas, Saint Thomas 54–6, 73, 81, Broyde, Michael J. 143, 147 151 Buchanan, J.M. 185 Archer, S. 212 Burke, Joseph 173 Ariff, M. 109, 163, 181 Aristotle 40, 52, 54, 55–6, 58, 59, 68, Callahan, D.J. 151, 152, 172 73, 77, 80, 81, 87 Callen, Jeffrey L. 145–6 Arrow, K.J. 78, 196 Calvin, John 50, 68, 69, 70 Ashley, W.J. 68 Campbell, D.E. 214 Askari, H. 85 carati 155–6 Atiyah, E. 36 Caruana, Jaime 1 Augustine, Saint 81, 105, 112 Catholic church, see Christianity Australian Banking Royal Commission Cecchetti, S.G. 137 (Hayne Inquiry) 125, 193 census contracts 153–4, 172–3

243

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 243 12/12/2018 11:43 244 Religion and finance

Chaney, Eric 110 Eby, John 112 Chapra, M. Umer 109, 138 Einzig, P. 63 charity 60, 61, 64, 87–8, 97, 117–18, Ekelund, R.B., Jr 107, 172, 173 120, 154 El Diwany, Tarek 47 Chewning, Richard 112 El-Gamal, M. 97 China 2, 3, 104 Elkin, Edward 169 Christianity 11–14, 23–4, 33–4, 193, 216 Epstein, L.M. 113 beliefs 28–9, 35–9, 81–2, 91, 93, 99 ethics and morality 5–6, 8, 76–9, 81, economic principles 105–6, 112, 140, 217 113–14, 123, 150–51, 172–4 role of religion 76, 77, 78, 80–81, 82, Cicero 80–81 86, 99, 141, 217 Cizakca, M. 152, 156, 165, 211, 213 Evangelicalism 28, 123, 124 Claessens, Stijn 137, 138 Evans, J.W. 74 Cline, W.R. 9 Cohn, H.H. 42, 43–4, 55 Feldman, D.Z. 42, 101–2 collateralized debt obligations (CDOs) Ferguson, Niall 131, 153 132, 135 financial malpractices 117–18, 125–7, commenda 146, 150, 152, 173–4 128–9, 131–2, 133–5, 138–9, 141, conditions for a workable society 76–8 216 contract design in financing 195–8, 214 attitudes of Holy religions 125–33, contractus trinus 66, 73–4, 154–5 149 Coogan, Michael 11, 12, 14–15, 18, financialization 137–8 19, 39 Finke, R. 75 Council of Islamic Ideology (CII) (Islamic jurisprudence) 34–5, 166, Report 49 176, 177, 202 Coval, Joshua 132 rulings to ameliorate banks’ credit partnerships 161–2 financing risks 207, 208, 209–10, 213–14 Das, Satyajit 4, 129 Fisher, Irving 135 Davis, K.T. 128 Fitzgerald, Frances 28 Day of Judgment 31, 60, 61, 83, 90, Foster, J.B. 137 189 Frankel, A.B. 9 debt 136–7, 138, 167, 190 Friedland, C. 74 vis-à-vis equity 198–201 Froud, J. 137 de Cecco, M. 63 Fuller, G.E. 23, 25–8, 31 de Roover, Raymond 64, 66, 73, 165, 169 Gafoor, Abdul A.L.M. 72 Deuteronomic double standard 42, 43, Galassi, F.L. 64 52, 55, 63, 70, 91, 193, 216 Gale, D. 195 Dimbleby, Jonathan 26 Gamoran, Hillel 147, 170–71 Divine, T.F. 44, 53, 70 Garcia, F.L. 44 Domb, Yoel 102 Gätje, Helmut 73 Dostoevsky, Fyodor 76 Gellner, Ernest 35 Doumani, B. 121 Gertler, Mark 135 Dowd, K. 196, 198, 214 Al-Ghazali, Abu Hamid 188, 189 Downs, A. 74 Glaeser, E.L. 53, 57 Dusuki, A.W. 206 global financial crisis 1, 4, 9, 125–7 Gluyas, R. 128 East Asia Analytical Unit 104 Golden Rule 41, 68, 90 Eastern Orthodoxy 10, 24–7, 29, 82 Gonzales, Justo 93

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 244 12/12/2018 11:43 Index ­245

Goodhart, C.A.E. 5, 9 ijara 138, 179–80, 201, 208, 211 Goodin, Robert E. 77 35, 138, 188, 192, 194, 206, Gopal, M.H. 40 211 Gordon, B. 52 Iley, Richard A. 3, 4, 9, 136, 142, 183, Gorton, Gary 129 186 government debt 182–6 Innes, R. 196 Greenspan, Alan 1, 131 interesse 51, 62 Greif, Avner 110 interest, see usury Grimsey, D. 3, 189 interest financing 194–200 Grossman, S.S. 199 Iqbal, Zafar 36, 76, 87, 96, 107, 118, 119, 120, 129, 187, 190 29, 34–5, 48, 52–3, 192 ‘iron flock’ 171 halacha 15, 144, 147 iska 144, 145 Haldane, A. 136 Islahi, A.A. 188 Hamid, A. 45 Hamilton, E.J. 184 beliefs and duties 32–4, 82–4, 87–8 Haque, Nadeem Ul 200 defined 29–32 Harris, M. 196 Golden age 35–7 Hart, O.P. 199 impact on ‘the long divergence’ Hasan, Samiul 88 109–11 Hasan, S.U. 202 principles of commercial law 87, Hasan, Zubair 108 174 Hassan, M. Kabir 107, 118 and public debt 187–90 Hawtrey, Sir Ralph 135 socio-economic principles 84–7, 90, Hay, Donald 105 93, 94, 112, 114, 116 Hayek, F.A. 104 Islamic bonds, see sukuk Hayne Inquiry, see Australian Banking Islamic economics discipline 106–9 Royal Commission istisnaa (manufacturing) 175, 178, 181, Hébert, R.F. 107, 172, 173 211 Hebrew Bible 17–20, 55, 88 Iyer, Sriya 103, 111, 115 Hellwig, M. 195 Hennigan, P.C. 121 Jain, L.C. 40 Henning, J. 152, 154 Jensen, M. 199 Hester, Donald D. 214 Jerusalem 11–12 hetter iska 43–4, 147–9, 171, 216 Jewishness 10, 15, 17, 17–23 Hinduism 40, 73 Joas, Hans 77 hiyal, see riba Johal, S. 137 Hoenig, Thomas 141–2, 144 Johansson, M.W. 5 Hoover, C.B. 173 Johnson, L.T. 82 Hoshi, Takeo 9 Jones, N. 57, 58, 73, 135 Houkes, J.M. 170 joint stock companies 149, 150, 155–6, Housby, E. 213 165, 190–91 Howladar, K. 209 ju’alah (commission) 178 HSBC 9, 136 Judaism 10–12, 13–15, 98, 193, 216 Hussain, Jamila 58, 86 economic principles 101–2, 111–12, Hussain, Z. 116 112–13, 115, 116, 123 interest free loans 168–9 Iannaconne, L.R. 71, 75 Jewish scriptures (Law, Prophets, Ibn Taymiyyah 94 Writings) 17–20, 89 IIFM 209 and the rise of capitalism 103–4

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 245 12/12/2018 11:43 246 Religion and finance

sales-based debt 169–71 Lopez, Robert Sabatino 60, 66, 152, social precepts 91, 92, 93, 94, 95, 154 96–7 Luther, Martin 68, 74, 105, 106, 155 Jurek, Jakub 132 Madouros, V. 136 Kahf, Monzer 118, 121, 211, 213 Maimonides, Moses 56, 102, 128, 146 Kaleem, A. ix, 9, 97 McChesney, R.C. 121 Kant, Immanuel 41, 54, 77 McCleary, R.M. 79, 107, 115 Karim, R.A.A. 212 McDonald, L.G. 134, 142 Karsten, I. 198 McIntosh, A. 40 Kaufman, Eric 24, 78 McMillen, Michael J.T. 181 Kerridge, Eric 69 Martin, R. 137 Keynes, John Maynard 108, 185 Maududi, Sayyid Abu al-A’la 83, 119, Khan, M.A. 200 187 Khan, M.S. 45 Meckling, W. 199 Khan, W.M. 199 Messer Domeneddio 64, 154 Kharroubi, E. 137 Mews, C. 54, 69, 73 Kindleberger, Charles 63, 150 Miller, M.H. 199 King, Mervyn 129 Mirakhor, A. 45, 200 Kodres, Laura 3, 130 Mirrlees, J. 214 Kohn, M. 155, 165, 172 Mishnah 20–23, 80, 102, 115–16, 145, Krauss, S.E. 33 146 Kulikovsky, A. 118 Mizen, P.D. 185 Kuran, Timur 8, 110, 111, 121, 155–6, Modigliani, F. 199 160, 190, 191 Mohamad, M.H.S. 120 monetary policy 6, 139, 141 Lagarde, Christine 2, 139 morality, see ethics Lal, Deepak 36 Moses 12, 13, 14, 16, 17, 19, 20, 21, 22, Langholm, O. 73 32, 35, 40, 43, 52, 79, 88, 89, 112 Lanman, S. 141 mudaraba 66–7, 71, 157–9, 163–5, Lara, G.Y. 173 174–5, 201, 210, 211 Leaver, A. 137 Muhamed, Nural Aini bt 202, 204, 205 Le Goff, Jacques 57, 73 Muller, Jerry Z. 103, 104 Levine, Aaron 5, 7, 17, 73, 125, 144, Munn, G.G. 44 171 Munro, J.H. 156, 183 Lewis, A. 214 murabaha 138, 175–7, 206–7 Lewis, C.S. 87 musharaka 65–6, 71, 159–61, 162, 171, Lewis, M.K. 39, 73, 85, 99, 104, 128, 201, 210, 211 135, 139, 142, 205, 206, 210, 214, Mustafa, M.O.A. 120 216 leverage of large complex financial Naqvi, Sayed Nawab Haider 109 institutions 136–7 Narain, Aditya 3, 130 Leys, Simon 41 Nelson, Benjamin 43, 51, 68, 70, 73, 74 Liberation theology 93, 100 Neusner, Jacob 41, 102 LIBOR 4, 49, 125, 138, 181, 212 New Century Financial 9, 142 Lindholm, C. 36, 37, 73 Nienhaus, Volker 213–14 Lister, R.J. 170 Noonan, John T., Jr 38, 73, 151, 153 Litan, Robert 3 Norberg, J. 186 Llewellyn, D.T. 214 Normani F. 84 Long, Stephen D. 80, 81, 82, 99 Novak, Michael 28, 100, 106

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 246 12/12/2018 11:43 Index ­247

Nyazee, Imran Ahsan Khan 158, 166 Raymond, I.W. 152 Nyberg, Lars 5 Rayner, S.E. 73 Razi, Muhammad Fakr al-Din 49–50, Obaidullah, Mohammed 182 58–9 Obstfeld, M. 9 Rehnema, A. 84 Ohrenstein, R.A. 130 Reinhart, Carmen 182–3, 186 religious growth 23–4, 25–7, 28, 29–30, Pamuk, Sevket 191 115, 122–3 Paris, D. 143 rentes contract 183–4 partnerships 7, 65, 143–4, 151–6, Resnicoff, Steven H. 143, 147 157–62, 165–6, 174–5, 192 riba 38–9, 44, 75, 216 in Christianity 150, 155 nature of 44, 46–7, 49–50 in Islam 156–7, 166 reasons for prohibition 49–50, 58–9, in Judaism 144–9 61, 81 Patinkin, D. 51 revisionist views 47–9 Pava, M.L. 121 source of prohibition 45–6 payday lenders 6, 72, 216 use of hiyal 63, 64–5, 71 Pentateuch (Torah) 17–19, 20, 21, 27, Rida, Muhammad Rashid 48 40, 79, 88, 91 Rippin, A. 73 People of the Book (dhimmas) 32, Rivlin, Yoef 168 91–2, 99 Robinson, Joan 76, 78, 99 Persson, M. 5 Robinson, P. 134, 142 Pew Research Centre 30 Roels, Shirley 112 Pinker, S. 101 Rogoff, Kenneth 182–3, 186 Pipes, Richard 26 Roll, Sir Eric 53 Plato 40, 54 Ross, S. 214 Poliakov, Léon 102 Rubin, Jared 8, 110 Presley, John 164 Russell, Bertrand 54, 115 profit and loss sharing (PLS) 143, Russian Orthodoxy 26–7, 79 144–6, 152–5, 156–65, 166, 175, 189, 202, 206, 210, 216 Saeed, A. 73 prosperity gospel 92–3 Safari, Meysam 109 Protestantism 6, 10, 27–8, 38, 41, 50, Sahnun, ‘Abd al-Salam ibn Sa’id ibn 68–72, 82, 92–3, 105 Habib al-Tanukhi 166 Pryor, John H. 146 Salah, O. 209 sales-based transactions 87, 112, 128, qard hasan 137, 174, 180–81, 187 137–8, 188 Quakers 93–4 Salin, E. 154 Sapori, A. 153 rabbinical Judaism 15, 20–23, 39, 79, Schacht, J. 47, 61, 64–5 80 Scheinkman, J.A. 53, 57 Rabinovich, L. 55 sea loan 173 Radzi, Rafisah Mat 181, 192, 208, 210 secular stagnation 1, 2, 139 Rae, N.D. 75 Securities Commission Malaysia 205 Rahman, Fazlur G. 47–8, 70, 73 Sessions, John 164 Rahman, Yahia Abdul 84, 85, 176 shadow banking system 3, 4, 5, Rainey, M. 209 129–30 Rangaswami, K. 40 Shah, Syed Yaqub 70 Rapp, D. 144 Shahed, A.K.M. 118 Raviv, A. 196 Shamsher, Mohamad 181

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 247 12/12/2018 11:43 248 Religion and finance

shari’ah 29, 34–5, 52, 86, 188, 189, 202, Torah, see Pentateuch 203, 213, 216 trade 40, 46, 50, 59, 72, 84, 85, 93, 150, shari’ah-compliant vs shari’ah-based 153–5, 156, 190 211–12 Trever, Albert 73 Al-Shatibi, Abu Ishaq Ibrahim 188, Trinity 10, 12, 25, 28–9, 32, 89 189 Shaukat, M. 187 Udovitch, A.L. 146, 152, 161–2, 174, Shia 10, 27, 34, 39 190 Shin, H.S. 4 ultra-low interest rates 139–40, 141–2 Shirazi, Nasim Shah 118, 119 United States 2, 3, 4, 125–42 Siddiqi, Muhammad Nejatullah 188 Usher, A.P. 155 Siddiqui, Shamin 207 Usmani, I.A. 157, 160 Smith, Adam 69, 185 Usmani, Maulana Taqi 203, 204 Solomon, Norman 14, 15, 21, 23, 39 usury 7, 8, 38, 40–74, 75, 135–7, 216, Sombart, Werner 103 217 speculation 127–8, 138 avoidance 63–4, 67–8, 71, 73, 217 Spiegel, H.W. 71 Biblical injunctions 41–2, 52–3, 56, Stafford, Erik 132 59, 146 Stigler, G.J. 74 canon law 53–4, 60–61, 70, 151 Stiglitz, J.E. 199, 214 reasons for prohibition 53–8, 135 Stockhammer, E. 137 and the rise of capitalism 70, 71–2 structured investment vehicles (SIVs) usury laws 41, 57, 69–70, 172 4, 5, 129 sub-prime mortgages 131–2, 133–5 Van Biema, David 5, 128, 133, 141 sukuk 181–2, 191, 208, 212, 216 Veatch, Henry B. 76–7 asset-based vs asset-backed 209–10 Visser, W.A.M. 40 Summers, Lawrence H. 1–2, 139 Sundararajan, V. 212 waqf 121, 191 Sunni 10, 29, 34, 39 Wallis, J. 92 Swidler, L.J. 113 Walsh, A. 54, 69, 73 Warde, Ibrahim 208 Tag El-Din, S.I. 208 Watt, W.M. 36 Taghavi, R. 85 Weber, A. 3 Tahir, Sayyid 187 Weber, Max 68, 70, 71, 103, 109 Talmud (Mishnah and Gemara) 15, Williams, K. 137 20–23, 40, 55, 60, 102, 145, 146, Williamson, S.D. 198 147, 168, 170 Wilson, Rodney 28, 79, 94, 99, 100, Tamari, Meir 125, 130 101, 102, 103, 105, 106, 109, 110, tawarruq 212–14, 217 124, 130, 135, 176, 192 Tawney, R.H. 54, 57, 67, 71 Woelfel, C.J. 44 Taylor, Arthur J. 185 Wogman, J. Philip 28, 105–6 Taylor, Bryan 185 Woodhead, Linda 10, 24–5, 28, 29 Taylor, Charles 77 Wright, C.J.H. 169 Taylor, T.W. 74 Ten Commandments (Decalogue) Yasin, Norhashimah Mohd. 177 19–20, 35, 89, 91, 117 Thomson, J.A.K. 56, 77, 81 zakat 34, 61, 86, 118–21, 217 Tinker, Tony 75 Zaman, Asad 108 Tollison, R.D. 107, 172, 173 Zarqa, Muhammad Anas 119

Mervyn K. Lewis and Ahmad Kaleem - 9780857939036 Downloaded from Elgar Online at 10/01/2021 05:01:05PM via free access

M4637-LEWIS & KALEEM_9780857939029_t.indd 248 12/12/2018 11:43