Arabic & Islamic Studies
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Item Customers' awareness, attitude and patronage of islamic banking in Nigeria(International Institute of Advanced Islamic Studies, Malaysia, 2015-07) Kareem, M. K.This study examines customers’ awareness of Islamic banking products and services in Nigeria and explores their attitude towards them. It also investigates their patronage of the banks. An 18-item questionnaire was designed for businesspersons, Muslims and non-Muslims, to obtain information on issues such as awareness of Islamic banking, loans without interest, collateral security, agency, partnership based on sharing of profits and losses and patronage of an interest free financial system. The results show the willingness of the Muslims and a large number of non-Muslims to patronise Islamic banking products and services. Products and services offered by a large number of the respondents were sharī‘ah-compliant. Their readiness to give collateral security, which is neither compulsory nor against the dictates of Islam, indicates their attitude and preparedness to patronise Islamic banks. However, a few non-Muslim respondents state they will not patronise Islamic banking products even if they are profitable and they are the only products in the banking sector in Nigeria. This study will assist promoters of Islamic banks in Nigeria to know where they can establish full-fledged Islamic banks. There is need for the existing and the potential Islamic banks to create more public awareness on Islamic banks.Item Implication of islamic finance for Nigeria’s economic diversification through enhanced financial inclusion(The Nigerian Economic Society, Department of Economics, University of Ibadan, Nigeria, 2016) Kareem, M. K.; Oladapo, M. A; Omotosho, K. M.This study empirically investigated the effects of financial inclusion on diversification from the perspective of Islamic finance. The analysis focused on eight Muslim countries with established Islamic financial and banking system, seven Muslim countries with no established Islamic financial and banking system and top eight countries in term of nominal GDP using IMF 2015 data. This provided a comparative analysis of the effects of financial inclusion on diversification in each of these groups of countries. Panel regression technique was used and the Herfindahl concentration index was computed and used to measure the degree of diversification to achieve the study objective. The results revealed, among others, that the economies of the countries with established Islamic financial and banking system were less diversified, as the number of Automated Teller Machines (ATMs) per 10,000km2 increased; but became more diversified as commercial bank branches per 1,000km2 and other deposit takers increased; countries with no established Islamic financial and banking systems became less diversified as the number of commercial bank branches per 1,000km2 increased, while they became more diversified as the number of other deposit takers rose. The study thus recommended, among others, that Nigeria should diversify its finance by utilizing Islamic financial products as viable sources of funding for sectors, such as agriculture, mining, manufacturing, and constructionItem The role of central banks in financial inclusion and sustainable development: comparative analysis of Islamic and conventional banking environments(Department of Religion and African Culture, Adekunle Ajasin University, Akungba-Akoko, 2018-12) Kareem, M. K.; Bankole, A. S.Several findings established the importance of Islamic finance through the removal of collateral and the payment of interest that are features of conventional banking in guaranteeing increased financial inclusion, economic growth and diversification, poverty alleviation!, enhanced efficiency of intermediation and increase income per worker, among others. Financial exclusion is attributed to religion, economic inequality, culture, geography and structure of the economy, lack of access to loans, deposit services, insurance, pension, and financial illiteracy. Therefore, this paper examines the roles of central banks in creating financial inclusion in conventional and Islamic banking environments with a view to drawing important lessons for economies struggling with challenges of financial inclusion in multi religious states like Nigeria. The paper uses comparative contextualization and analyses trends of financial inclusion indicators as outcomes of central bank policy design and implementation strategies in these different paradigms to draw inferences of efficiency and effectiveness. The paper posits that Central Banks in Islamic banking environments which imbibe and actively implement financial inclusion strategies generate better outcomes relating to access to loans, deposit services, insurance, pension, and financial literacy.Item Islamic banking and sharfah scholars in Nigeria(IUR Press, Rotterdam, Netherlands, 2016) Kareem, M. K.Compliance with Shari'ah rules is compulsory for all Islamic banks; and such compliance is monitored by Shari'ah scholars. Therefore, this article examines and gauges the level of understanding of Nigerian Shari'ah scholars (the custodians of Shari'ah rules in the country) and their perceptions of the Islamic banking and its rules particularly interest (riba). The survey method involving the use of purposive sampling was adopted to administer 1,040 copies of a questionnaire sent to Nigerian Shari'ah scholars, though some key people were also interviewed. The questionnaire, which contains 19 items, was designed to elicit information from them on issues such as their understanding of riba, its uses in the Qur'an, Islamic banking products, collateral security and promotion (promos). Our findings revealed that there were more respondents (917) who considered usury to be forbidden than those who considered (871) interest to be forbidden. A large number of Shari'ah scholars (93.6%) confused interest with usury which suggests that both interest and usury refer to riba. Some believed that riba (48.6%) only refers to usury, while most of the respondents (74.1%) opined that all forms of interest are prohibited. About 73.7%, 86.3%, and 27.6% of the respondents believed rahn (collateral security), innovating interest-free financial products and patronising conventional banks respectively were allowed. The Shari'ah scholars surveyed (64.7%) believed that conventional financial products can be made Shari’ah-compliant, banks can operate successively without interest (89%), and they (70.3%) were of the views that promotions done by the conventional banks are against the teachings of Islam considering the source of the funds used in their promotions which contains the accrued interest income and lack of fairness in the distributions of the promotions. Seminars, workshops, and conferences can be organized for the scholars with a view to training them in the areas of Islamic banking and finance. Collaboration can be established between the Nigerian Shari'ah scholars and the Shari'ah scholars from the Middle East so that the former can benefit from the wealth of experience of the latter in the areas of Islamic banking and finance.Item Inflation and the macro economic problems in Nigeria: an islamic perspective(Class Publishers, 2013-04) Kareem, M. K.One of the most crucial macroeconomic problems for most countries of the world is inflation. Although many countries particularly the developed countries experience rise in prices, the extent of the rise is so small that may go unnoticed by their people. However, this is not the case in Nigeria where it is double digit and with no signs of slowing down. In this paper, inflation in the conventional economy is discussed in the light of Islamic economy. It also examines if Shari'ah allows protection against inflation for the lender in a financial transaction. The effects of inflation rates on interest rates in Nigeria and how they can be controlled using Islamic finance are also examined. Islam supports zero rate of interest. However, it is indifferent to zero inflation inasmuch as it is not caused by human factors. If full employment prevails, the rate of inflation will be zero. The paper shows that inflation is allowed to some extent while indexation is not allowed because of injustice. An Islamic economy is not prone to a high rate of inflation due to some built-in stabilizers. We note some characteristics of Islamic finance that can prevent inflation from occurring or at the least can reduce the negative effects of inflation in an Islamic economy.