You are previewing The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking, 2nd Edition.
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The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking, 2nd Edition

Book Description

Updated and expanded insights into Islamic banking and finance

From Yahia Abdul-Rahman-the father of Riba-Free (RF) banking-comes the expanded edition of the definitive resource that offers an understanding for applying Islamic banking and financial practices. No matter what your faith or religious beliefs, the book shows how to take a modern American approach to incorporating Islamic financial principles into banking and investment techniques.

The Art of RF (Riba-Free) Islamic Banking and Finance describes the emergence of a culture of Islamic banking and finance today, which is based on the real Judeo-Christian-Islamic spirit and has proven very effective when compared to 20th century models that use financial engineering and structural techniques to circumvent the Shari'aa Law. The author also reveals information about how fiat money is created, the role of the Federal Reserve, and the US banking system. Abdul-Rahman includes a wealth of real-life examples and offers an analysis of how this new brand of banking and financing yields superior results.

  • Offers the fundamentals on Riba-Free (RF) banking

  • Shows how to apply RF to everything from joint ventures and portfolio management to home mortgages and personal finance

  • Reveals what it takes to incorporate Shariah Law into US financial systems

  • Includes information on why RF banking is a socially responsible way to invest

  • Thoroughly revised and updated, this resource offers a handbook for applying Shari'aa law to American banking and finance.

    Table of Contents

    1. Preface to the Second Edition
      1. Note
    2. Preface: My Story with RF (Islamic) Banking and Finance in America
      1. Notes
    3. Acknowledgments
    4. About the Book Cover
    5. Chapter 1: Introduction
      1. Notes
    6. Chapter 2: The Faith-Based Judeo-Christian-Islamic Foundation of the Prohibition of Interest and the RF (Riba-Free) Banking System
      1. Islam: The Additional and Closing Link in the Chain of Judaism and Christianity
      2. An Introduction to the Judeo-Christian-Islamic Foundations of Faith
      3. The Judaic Position on the Charging of Ribit (Interest): Money, Lending, and Interest in the Torah and the Jewish Tradition
      4. The Charging of Ribit (Interest) in the Roman Catholic Tradition Then and Now
      5. The Charging of Ribit (Interest) in the Tradition and Teachings of the Evangelical Christian Church
      6. The Prohibition of Charging of Ribit/Riba (Interest/Usury) in Islam
      7. Review Questions
      8. Notes
    7. Chapter 3: The RF Valuation Disciplines of Commodity Indexation and Marking to the Market
      1. Development of the Mark-to-the-Market Rule
      2. Riba-Free Business Transaction Models
      3. Review Questions
      4. Notes
    8. Chapter 4: The Law: The Judeo-Christian-Islamic Shari'aa
      1. The Law: Shari'aa
      2. The Shari'aa Board in an RF (Islamic) Bank or Finance Company
      3. The Development of RF Scholars and Compliance Committees for RF Finance Institutions in the Twenty-first Century
      4. Review Questions
      5. Notes
    9. Chapter 5: Money and Its Creation: The U.S. Federal Reserve System (Central Banks) and Interest Rates
      1. Those Who “Make” Money and Others Who “Earn” Money
      2. The Federal Reserve Board of the United States of America
      3. A Brief History of the Bretton Woods Agreement
      4. Gold: That Amazing Metal
      5. The Fiat Money Economy
      6. Review Questions
      7. Notes
    10. Chapter 6: Towards an RF Monetary Discipline: The RF Commodity Indexation Discipline
      1. The Cyclical Nature of the Fiat Money Economy
      2. The Prohibition of Riba/Ribit
      3. Analysis of Prices of Homes, Commodities, and Stock Markets in the United States Using the Commodity Indexation Discipline
      4. A Proposed Beginning of a New Era that Uses the RF Monetary Discipline
      5. Review Questions
      6. Notes
    11. Chapter 7: Civility and Social Responsibility of the RF Banking System
      1. The Judeo-Christian-Islamic Values: Civility, Morality, and Social Responsibility
      2. The Vision of an Ideal Faith-Based Judeo-Christian-Islamic Society
      3. New Trends that Captured the Imagination of the Pagans of the Arabian Peninsula—Lessons to Learn From
      4. Elements of the RF Economic System
      5. The RF Judeo-Christian-Islamic System and Business Ethics
      6. Banking and Investment Banking
      7. Values and Business Ethics of the RF Banker
      8. The 10 Golden Covenants of the RF Banker
      9. The RF Banking Discipline: Where Do We Start and How Do We Realize the Dream?
      10. Review Questions
      11. Notes
    12. Chapter 8: The Conventional Riba-Based Banking System
      1. The Banking System of the United States
      2. Types of Banking Services in the United States
      3. Government Supervision of the Bank
      4. U.S. Banking Regulations
      5. Summary of Federal Banking Regulations in the United States
      6. Review Questions
      7. Notes
    13. Chapter 9: Comparing RF Banking and Conventional Riba-Based Banking: What is the Difference?
      1. The RF Banking Brand: History, Development, and Stages of Growth
      2. An Overview of RF Banking
      3. Review Questions
      4. Notes
    14. Chapter 10: RF (Islamic) Banking in the Twentieth Century
      1. RF (Islamic) Banking Models
      2. Court Challenges to the Shari'aa-Compliant “Contract Fitting” Used by Some Islamic Finance Approaches
      3. Conclusion
      4. Review Questions
      5. Notes
    15. Chapter 11: RF Banking Model for the Twenty-First Century: The LARIBA RF Model: Developing the Shari'aa-Based Finance Model
      1. The Puzzle and the Challenge of Developing RF Banking and Financing
      2. The Shari'aa Law and the Laws of the Land
      3. Major Objections of RF Shari'aa Scholars to the Conventional Riba-Based Finance Contract
      4. Building the Shari'aa-Based LARIBA RF Finance Model
      5. The Results
      6. Review Questions
      7. Notes
    16. Chapter 12: Putting the RF Finance Movement and Discipline Together: A Step-by-Step Application of the RF Finance Procedure
      3. Review Questions
      4. NOTES
    17. Chapter 13: Starting an RF Bank in the United States: Acquiring and Restructuring a Troubled Bank and Operating It Riba-Free
      1. Introduction
      2. Riba-Based Conventional Financing versus RF Financing
      3. Looking for a Suitable Bank to Acquire
      4. Making History: Acquiring the Bank of Whittier, NA
      5. Operating the First RF Bank in the United States
      6. The Staff and Employee Policy
      7. The Audit Policy
      8. Review Questions
      9. Notes
    18. Chapter 14: RF Capital Markets: Developing the RF Capital Market Investment Products
      1. The Challenge of Financing New Businesses and Growing Existing Business
      2. Valuation of Bonds: Bond Rating and Rating Agencies
      3. The RF Capital Market and Its RF Instruments
      4. Trading of Sukuk on Secondary Markets
      5. Guidelines for RF Investing in the Stock Market
      6. Review Questions
      7. Notes
    19. Chapter 15: Case Studies: Developing the RF Banking Investment Products
      1. The Investment Pyramid
      2. RF Asset-Backed Bonds (Sukuk)
      3. Review Questions
      4. Notes
    20. Chapter 16: RF Credits (Loans) in Contrast to Types of Riba-Based Loans
      1. Overdraft Protection for Holders of Checking Accounts
      2. Lines of Credit
      3. Review Questions
    21. Chapter 17: The RF Approach to Handling Troubled and Nonperforming Credits (Loans)
      1. Resolving the Problem of Nonperforming Credits (Loans)
      2. Case Studies
      3. Review Questions
    22. Chapter 18: Visions for the Future of RF Banking
      1. The 2008 Global Economic and Financial Meltdown
      2. The Mega-Banks and Financial Institutions
      3. The Culture of Renting Money with Ribit/Riba
      4. The RF Lifestyle
      5. The Lifestyle of the Judeo-Christian-Islamic Value System
      6. Some Advice for the Newcomers to the RF Lifestyle
      7. Review Questions
      8. Notes
    23. Chapter 19: RF Banking: A New Banking Brand for the Twenty-First Century
    24. About the Companion Website
    25. Index
    26. End User License Agreement