The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

The Art of Islamic Banking and Finance is a modern American take on what it means to incorporate Islamic finance principles into everyday banking and investment techniques. It introduces a new brand of banking for people of all faiths: the Riba-Free (RF) banking.

Author Yahia Abdul-Rahman—who is considered the father of RF (Islamic) banking in America—has been a banker and an imam/scholar for over forty years. He is also the founder and Chairman of American Finance House: LARIBA, a company that has offered Islamic finance and banking research and instruments for more than twenty years. Now, in The Art of Islamic Banking and Finance, Abdul-Rahman shares his experiences in this field with you.

This unique guide first traces the Judeo-Christian-Islamic origins of prohibiting “renting” money at a price, called interest, and overindulging in debt. From there, it quickly moves on to discuss money and how fiat money is created, the role of the Federal Reserve, and the American banking system. Along the way, Abdul-Rahman skillfully addresses how to include an important aspect of RF (Islamic) finance using commodity indexation and marking the items to be financed to market in order to avoid participating in economic “bubbles.” He also examines how these rules work, how they affect consumer behavior, and how they change the role of the banker/financier. The book covers many useful quests like restructuring and operating an RF bank in the United States and the recruiting and training of RF bankers based on the author’s experience.

Chapter by informative chapter, this reliable resource:

• Covers a new pioneering model that is based on the Law (Shari’aa) and how it is applied in every transaction—from joint ventures and portfolio management to home mortgages and personal finance

• Shows how to incorporate the Law (Shari’aa) while operating in American financing and banking systems

• Points to RF (Islamic) finance and banking as a way to emphasize socially responsible investing

• And much more

The Art of Islamic Banking and Finance also includes a discussion on the emergence of a culture of RF (Islamic) banking and finance today, which is based on the real Judeo-Christian-Islamic spirit and is very reliable when compared to twentieth-century models that use financial engineering and structuring techniques to circumvent the Law (Shari’aa).

Filled with comprehensive case studies based on the author’s actual experiences and detailed analysis of the superior results realized by applying this new brand of banking to financing, The Art of Islamic Banking and Finance will help you gain a firm understanding of how effective this proven approach can be.

Praise for The Art of Islamic Banking and Finance

“It is not surprising that The Art of Islamic Banking and Finance provides a definitive exposition of Islamic economics theory and its application in developing Shari’aa-compatible products. The writer, Dr. Yahia Abdul-Rahman, is among the pioneering scholars who showed how Islamic economic concepts, long forgotten, can be revived and applied effectively in today’s financial services industry. His American Finance House: Lariba has become one of the main driving forces for Islamic finance in North America, providing a showcase for how such concepts can be successfully applied.”
—Dr. Saleh Malaikah, Chairman, RUSD Investment Bank Inc.

“The Art of Islamic Banking and Finance is an insightful and sometimes surprising comparative study of the impact of Judeo-Christian-Islamic religious principles on the evolution of banking and finance in its various forms. One of Dr. Rahman’s key observations is this: it is not so much the fundamental principles that are different between Islamic and conventional finance, but rather their interpretation and application in modern practice. This fine work will appeal not only to those who wish to understand Islamic banking, but to anyone with an interest in our financial institutions and how and why they have evolved to what they are today.”
—Guy David, Partner, Gowling Lafleur Henderson LLP

“The Art of Islamic Banking and Finance gives a powerful, practical, and proven answer to the question of the hour: how to make banks responsible to the public they are meant to serve. The book offers not a theory but a report on how Islamic banking has successfully functioned in modern America.”
—Richard Bushman, Professor of History Emeritus, Columbia University

“Yahia’s discussion of Islamic banking is frank, engaging, and informed by substantial practical experience. For all those who believe that the finance industry should once again serve the wider interests of humanity, this is a welcome guide on changing things for the better.”
—Tarek El Diwany, Senior Partner, Zest Advisory LLP