10 Best Books on Islamic banking and Islamic finance(Review)

The benefits and wisdom of Islam and in particular Islamic economics is not just for Muslims, but for all mankind.Muslims often try to explain that Islam is more than a religion. They contend that Islam is actually a way of life, with the Quran and the life traditions of the Prophet Muhammad (peace be upon him) providing a blueprint for daily life. From marriage and family life to lawful food and drink, from modesty in dress and excellence in social manners to ethics in trade and finance, Islam encompasses all aspects of our existence

Why Islamic banking?

Islamic Sharia prohibits acceptance of specific interest or fees for loans of money (known as riba, or usury), whether the payment is fixed or floating. Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam (“sinful and prohibited”). Although these prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent unIslamic practices, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community.

Quran learning
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The global Islamic finance market is now worth about $700 billion worldwide.The principles of Islamic finance emphasize market-based risk-sharing modes of financing that promote asset and enterprise, deploy finance in service of the real economy, and facilitate redistribution of wealth and opportunity.Islamic finance is an inclusive field,its ideals are not unique to Islam nor is its practice confined to muslims.Learn about interest free banking.

Here is a List of Recommended Books on Islamic finance which you may find Useful. Some of it gives the basic introduction of Islamic finance and is a great Read for a Person who wants to Understand the Islamic Economy.

Islamic Fintech

1)Islamic Finance-Why It Makes Sense?

This is an interesting book on Islamic Banking by interesting authors:-Vicary Daud Abdullah  &, Keon Chee Both the authors were not born in non- muslim families.They obtained an excellent insight on how a person new to Islam or finance,or both can go about understanding Islamic finance.This book looks at the Islamic finance from the perspective of consumer who has to make very important decision throughout his/her life.The book’s cover and pages are all very appealing.

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It covers the following topics:

  • Why Islamic finance
  • Basic Islamic finance principles
  • islamic contracts
  • Building an islamic finance framework
  • How financial market works
  • financing based on debts
  • Financing based on leasing
  • Trade financing ,etc

2)Introduction to Islamic Banking & Finance: Principles and Practice

This book Covers the  essential elements of Islamic Banking and Finance, as well as the latest views on topical debates surrounding the discipline,This  text is essential reading for anyone seeking to understand this increasingly important sector of the finance industry.It is particularily good for students and people who are new to Islamic Finance.

An Introduction to Islamic Banking and Finance contains following chapters:

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  • Chapter 2 Islamic Contract Law
  • Chapter 3 Financial Instruments of Islamic Banking and Finance
  • Chapter 4 Financial Accounting for Islamic Banking Products
  • Chapter 5 Corporate Governance for Islamic Financial Institutions
  • Chapter 6 Islamic Asset and Fund Management
  • Chapter 7 Islamic Bonds
  • Chapter 8 Islamic Insurance (Takaful)
  • Chapter 9 Islamic Microfinance
  • Chapter 10 Risk Management in Islamic Finance

3)Islamic Finance For Dummies

Islamic Finance For Dummies helps experienced investors and new entrants into Islamic finance quickly get up to speed on this growing financial sector.This book adresses the risks and rewards in Islamic banking and highlights the  future prospects and opportunities of the Islamic finance industry. This book offers the fastest  and easy way to tap into the booming Islamic finance arena.Again if you are new to Islamic finance,this book is for you.

It covers the following topics:

  • Basics of Islamic Finance
  • Introducing Islamic Commercial laws
  • Eyeing Islamic Banking operation
  • Islamic Investment markets
  • Issuing financial statements,managing risk
  • Takaful: Islamic Insurance

4)Islamic Finance: Ethics, Concepts, Practice

If you are in search of a book that is cheap,and which covers all aspect of Islamic Finance, and Islamic banking,then this book is for you.It is written by Usman Hayat and Adeel Malik.In this book,we learn about interest free banking and how the context of islamic finance is not confined to Islam.It highlights the regulatory issues and political economy of Islamic finance.A nice book with eight chapters covering all essential aspects of Islamic banking.

It covers the following topics:

  • Islamic Economic thought
  • Sharia and prohibitions shaping Islamic finance
  • Islamic Finance in practice
  • Regulatory issues
  • Governance and social responsibilities
  • political economy of Islamic finance
  • Elaborates on” form vs substance” debate
  • summerises the finding of emperical studies while offering concluding thought

5)Introduction to Islamic Economics: Theory and Application (Wiley Finance)

A book by wiley finance,it is written specifically for finance and investment professionals as well as for sophisticated individual investors and their financial advisors.But it is not that difficult to understand.Although I am not a finance person,but I am particularily impressed by this book.Beside covering the fundamental of islamic economics,it explains the foundation of islamic economic,riba free banking,role of fiscal policy,role of monetary policy,risk sharing it goes further to the microeconomic and macroeconomic concept.Each chapter has a summery,a key word note and set of questions.A nice book to understand the practical application of islamic finance.

It touches on the following aspects

  • What is Economic system?
  • The difference between the economic system and the role the government plays
  • How the ideal Islamic system differs from westerm markets capitalist system
  • The role of markets and how do they differ in Islam and in the market capitalist system
  • What institutions are and why they matter for islamic prosperity
  • Public policy in the islamic economic system
  • monetary policy,fiscal policy,Risk sharing.Takaful etc.
  • It basically covers almost all aspects of Islamix finance.

6)The Islamic Banking and Finance Workbook: Step-by-Step Exercises to help you Master the Fundamentals of Islamic Banking and Finance

This book is very interesting,a fun way to learn.This is truly a step by step exercise book,which help you master the fundamentals of Islamic banking.It has 10 chapters and covers all important aspects of Islamic banking and finance.It prepares you the way you prepare for exams,it has lots of MCQs and exercises at the end of each chapter,which tests you with understanding for the text.If you are a student of Islamic banking,or if you would like learn the islamic finance like a new student you would love this book.

A very interesting question and answer book on Islam.It has a list of question which the reader should try to answer himself to check his knowledge and there are answers too.Lots of MCQ and lots of questions.A must have book to understand all aspects of Islam.

It has question and answers about

  • Islam -5 pillars of Islam
  • Sharia
  • Principle of islamic Banking and Finance
  • Murbaha contraxt as a mode of islamic finance
  • Questions on Musharaka contract
  • About ijara contract
  • About istisna’s contract
  • Salam contract
  • Takaful

7)Islamic Finance in the Global Economy

If you are interested to study the historical and comparative perspective of Islamic finance,this is a good book.It highlights the country differences and cultural issues.It also throws light on global norms and religious restraints and the evolution of modern Islamic finance.It is written by Ibrahim warade

It has 12 chapters:

  • Islamic finance in theory and practice
  • Islam economics and finance
  • Riba,gharar,moral economy in historical and comparative basis
  • Evolution of modern Islamic finance
  • Islamic finance and global political economy
  • country difference
  • financial products and instruments
  • strategic,managerial and cultural issues
  • Economic issues
  • regulatory issues
  • guilt by association:islamic finance and politics
  • Religious issues and challenges

8)The Problem With Interest

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Tarek El Diwany’s detailed and forthright commentary on the nature of usury and modern banking has attracted a wide readership since it was first published in 1997. This new edition has been extended with material arising from the recent financial crisis and includes a wealth of academic and popular references for readers who wish to delve deeper into the topic. The author’s critique of current practices in the field of Islamic banking and finance has also been updated and a standard transliteration scheme for Arabic terminology is now adopted throughout.

9)Principles of Islamic Jurisprudence

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It is a Very good book on introductory Islamic Law. This book sets the basis on each source of law and provides a lot of detail on the sources.  A Very good on usul al-fiqh.

Written as a university textbook, ‘Principles of Islamic Jurisprudence’ is distinguished by its clarity and readability; it is an essential reference work not only for students of Islamic law, but also for anyone with an interest in Muslim society or in issues of comparative jurisprudence.

10)Islamic Banking and Finance: What It Is and What It Could Be

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This text has been designed for use by professionals new to the field of Islamic banking and finance, and by students at undergraduate level or above. It covers the historical, theological, commercial, legal, institutional and macro-economic factors affecting the modern world of Islamic banking and finance and is organised into four main sections: Islam and the Shariah, Traditional Contract Forms, Contemporary Practices, and A Response to Capitalism. Views both for and against the current direction of the Islamic banking and finance industry are presented and a number of reforms are suggested at the institutional and contractual levels. Traditional and contemporary interpretations of Islam are contrasted, along with differences of opinion among the various schools of thought, so that the reader can better understand current discourse among scholars of Shariah. In a section devoted entirely to the modern application of Islamic contract law, fourteen case studies provide a detailed analysis of the extent to which modern Islamic financial products adhere to the legal principles outlined elsewhere in the book.

It is a bit Costly but is the most Comprehensive Book of Islamic Finance.

If there are other books in Islamic finance that you have found useful, please share their titles using the comments section below.