Direct and indirect costs in Islamic finance – opportunities for research
This is an exploratory conceptual paper that attempts to highlight some potential research areas related to the aspects of direct and indirect costs in Islamic finance. Questions on whether indirect costs should be included in compensation calculation and in computing mudarabah profit, as well as th...
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| Format: | Proceeding Paper |
| Language: | English English English |
| Published: |
2019
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| Online Access: | http://irep.iium.edu.my/77634/ http://irep.iium.edu.my/77634/1/Direct%20and%20Indirect%20Costs%20in%20Islamic%20Finance.pdf http://irep.iium.edu.my/77634/2/10-th%20FIFC%20Booklet%20PDF%20FINAL.pdf http://irep.iium.edu.my/77634/3/10th%20FIFC%20LOA%20Dr%20Nazrol%20Kamil%20Bin%20Mustaffa%20Kamil.pdf |
| _version_ | 1848788477778329600 |
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| author | Mustaffa Kamil, Nazrol Kamil |
| author_facet | Mustaffa Kamil, Nazrol Kamil |
| author_sort | Mustaffa Kamil, Nazrol Kamil |
| building | IIUM Repository |
| collection | Online Access |
| description | This is an exploratory conceptual paper that attempts to highlight some potential research areas related to the aspects of direct and indirect costs in Islamic finance. Questions on whether indirect costs should be included in compensation calculation and in computing mudarabah profit, as well as the issue for indirect costs in the context of Islamic banking windows, are deliberated upon. The paper articulates a comparison of costs of Islamic banks vis-à-vis conventional banks in terms of cost of funds, general cost efficiencies, regulatory costs, asset-liability management and risk management costs, operational costs and costs of bad debt. The risk of non-Shari’ah compliance and how it may impact costs are also highlighted. Finally, the paper briefly discusses some cost aspects relevant to Islamic capital markets. |
| first_indexed | 2025-11-14T17:41:27Z |
| format | Proceeding Paper |
| id | iium-77634 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T17:41:27Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-776342019-12-30T08:27:22Z http://irep.iium.edu.my/77634/ Direct and indirect costs in Islamic finance – opportunities for research Mustaffa Kamil, Nazrol Kamil HG Finance HG3368 Islamic Banking and Finance This is an exploratory conceptual paper that attempts to highlight some potential research areas related to the aspects of direct and indirect costs in Islamic finance. Questions on whether indirect costs should be included in compensation calculation and in computing mudarabah profit, as well as the issue for indirect costs in the context of Islamic banking windows, are deliberated upon. The paper articulates a comparison of costs of Islamic banks vis-à-vis conventional banks in terms of cost of funds, general cost efficiencies, regulatory costs, asset-liability management and risk management costs, operational costs and costs of bad debt. The risk of non-Shari’ah compliance and how it may impact costs are also highlighted. Finally, the paper briefly discusses some cost aspects relevant to Islamic capital markets. 2019 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/77634/1/Direct%20and%20Indirect%20Costs%20in%20Islamic%20Finance.pdf application/pdf en http://irep.iium.edu.my/77634/2/10-th%20FIFC%20Booklet%20PDF%20FINAL.pdf application/pdf en http://irep.iium.edu.my/77634/3/10th%20FIFC%20LOA%20Dr%20Nazrol%20Kamil%20Bin%20Mustaffa%20Kamil.pdf Mustaffa Kamil, Nazrol Kamil (2019) Direct and indirect costs in Islamic finance – opportunities for research. In: 10th Foundation of Islamic Finance Conference 2019, Sunway University. (Unpublished) |
| spellingShingle | HG Finance HG3368 Islamic Banking and Finance Mustaffa Kamil, Nazrol Kamil Direct and indirect costs in Islamic finance – opportunities for research |
| title | Direct and indirect costs in Islamic finance – opportunities for research |
| title_full | Direct and indirect costs in Islamic finance – opportunities for research |
| title_fullStr | Direct and indirect costs in Islamic finance – opportunities for research |
| title_full_unstemmed | Direct and indirect costs in Islamic finance – opportunities for research |
| title_short | Direct and indirect costs in Islamic finance – opportunities for research |
| title_sort | direct and indirect costs in islamic finance – opportunities for research |
| topic | HG Finance HG3368 Islamic Banking and Finance |
| url | http://irep.iium.edu.my/77634/ http://irep.iium.edu.my/77634/1/Direct%20and%20Indirect%20Costs%20in%20Islamic%20Finance.pdf http://irep.iium.edu.my/77634/2/10-th%20FIFC%20Booklet%20PDF%20FINAL.pdf http://irep.iium.edu.my/77634/3/10th%20FIFC%20LOA%20Dr%20Nazrol%20Kamil%20Bin%20Mustaffa%20Kamil.pdf |