Ahamed Meera - Academia.edu (original) (raw)
Papers by Ahamed Meera
This study addresses the linkages between lending structure and bank risk exposures via the Capit... more This study addresses the linkages between lending structure and bank risk exposures via the Capital Asset Pricing Model (CAPM). Based on the 3-factor CAPM, five risk measures are examined; namely, the market, interest rate, exchange rate, total and unsystematic risk exposure. The influence of lending structure is analysed via four measures, the real estate lending, the specialisation index, the short-term lending stability, and the medium-term lending stability. Our findings show that the lending structure affects the market, interest rate, and unsystematic risk exposures. The stability of lending structure in both the short-term and medium-term period positively influence the market and interest rate risk exposure. On the other hand, the medium-term lending structure stability negatively affects the unsystematic risk exposure. Thus, the policy makers, bankers, and investors should not ignore the significant role of the lending structure when developing a strategic risk management framework. ABSTRAK Kajian ini melihat hubungan antara struktur pinjaman dengan risiko bank menggunakan pendekatan Model Peletakan Harga Aset Modal (CAPM). Berdasarkan 3-faktor CAPM, lima jenis risiko telah dikaji; iaitu, risiko pasaran, risiko kadar faedah, risiko kadar tukaran asing, risiko sistematik dan risiko keseluruhan. Kesan pengaruh struktur pinjaman terhadap risiko dikaji menggunakan empat ukuran, iaitu pinjaman kepada sektor hartanah, indeks konsentrasi, kestabilan struktur pinjaman bagi jangka pendek dan kestabilan struktur pinjaman bagi jangka masa sederhana. Hasil kajian mendapati bahawa struktur pinjaman mempengaruhi risiko pasaran, risiko kadar faedah dan risiko sistematik. Kestabilan struktur pinjaman bagi jangka pendek dan jangka sederhana mempengaruhi risiko pasaran dan risiko kadar faedah secara positif. Manakala, kestabilan struktur pinjaman jangka sederhana mempengaruhi risiko sistematik secara songsang. Oleh itu, para penggubal polisi, pengurus sektor perbankan dan pelabur seharusnya mengambil kira kepentingan peranan struktur pinjaman dalam membangunkan kerangka strategik bagi pengurusan risiko bank.
Humanomics, 2006
Part I of the paper argued that fiat money is counterproductive to the attainment of the maqasid ... more Part I of the paper argued that fiat money is counterproductive to the attainment of the maqasid al-Shari'ah. In the present interest-based fiat monetary system one of the maqasid, namely, the protection of wealth (mal) cannot be realized, which in turn causes the other maqasid to be affected too. In this Part II paper we argue for commodity monies, like the gold dinar and silver dirham, as being compatible with the maqasid. Basically the paper concludes that the Islamic economic system is fundamentally a 'barter' system, i.e. an exchange economy where goods and services are exchanged value for value; but avoids the problems associated with barter by taking some of the commodities exchanged in the economy, that have the characteristics of money, as money; and gold is here argued as the best Shari'ah money.
Fractional reserve banking (FRB) is the basis of the present-day monetary systems. In most countr... more Fractional reserve banking (FRB) is the basis of the present-day monetary systems. In most countries, Islamic Banking and Finance too operates under this principle. This article argues that the FRB has effects on the ownership structure of assets in the economy, and that this effect violates the Islamic principles of ownership. It argues that money creation through FRB is creation of purchasing power out of nothing which brings about unjust ownership transfers of assets in the economy, to the bank effectively, paid for by the whole economy through inflation. This transfer of ownership is not based on human effort by taking on legitimate risks and neither with the knowledge nor the consent of the initial owners. These violate the ownership principles in Islam and tantamount to theft. It also has the elements of riba. On the same basis, Islamic governments should not create fiat money since this is equivalent to taking assets of the people, rich and poor alike, forcefully without compensation. It is, therefore, important that Shariah scholars come up with a fatwa on both the fiat money and the fractional reserve banking system. Such a fatwa is urgent and pertinent before Islamic banking and finance, that operate under these systems, takes a course that may prove to be difficult to reverse later. The Islamic economic and finance system cannot be founded upon a money system that is fundamentally equivalent to theft and riba.
... It examines the Malaysian currency peg that has been in place since September 1998, using sel... more ... It examines the Malaysian currency peg that has been in place since September 1998, using selected key economic indicators to examine whether the currency peg is a sustainable ... For technical questions regarding this item, or to correct its listing, contact: (Reuben T. Campos). ...
Journal of King Abdulaziz University-islamic Economics, 2009
The authors compare the al-Bay' Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (M... more The authors compare the al-Bay' Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (MMP) contracts. The BBA, a murabahah contract, was argued to be problematic and even unIslamic for long-duration contracts. The MMP contract which is a combination of musharakah (partnership) and ijarah (rental) contracts was argued to be a more appealing alternative. In the MMP, the equity of the financier diminishes progressively while, in accordance, the equity of the customer grows. Unlike for the BBA contract, scholars are consensus on the Shari'ah permissibility of the MMP contract. A mathematical derivation for the MMP showed that the formula for the MMP to be similar to the formula used in conventional loans but nonetheless with the interest rate replaced with the rental rate. Therefore, one major advantage of MMP was argued to be that it can avoid interest (riba) totally. Also, unlike under the BBA, the balance of financing, at any point in time, never exceeds the original price of the asset. Nevertheless, some practical issues need to be addressed particularly the means of estimating the rental rate, tax issues, defaults and asset value appreciation. This paper discusses these issues. When not profitable for the banks, when rental rates fall short of interest rates, the MMP can be implemented through cooperatives, which can be also an investment avenue for members.
International Journal of Emerging Markets, 2009
Purpose -The purpose of this paper is to empirically explore market integration among five select... more Purpose -The purpose of this paper is to empirically explore market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore) during the pre-and post-1997 financial crisis periods. Design/methodology/approach -Employs two-step estimation, cointegration and generalized method of moments (GMM). Findings -The study finds that the stock markets in the ASEAN region are cointegrated both during the pre-and post-1997 financial crisis. However, the markets are moving towards a greater integration, particularly during the post-1997 financial crisis. Finally, as measured by the error correction terms, except the emerging market of Indonesia, all other ASEAN markets appear to be the important bearers of short-run adjustment to a shock in the long-run equilibrium relationships in the region both during the pre-and post-crisis periods.
Humanomics, 2006
... The Maqasid al-Shari'ah. Al-Ghazzali states that the very objective of Shari'ah is ... more ... The Maqasid al-Shari'ah. Al-Ghazzali states that the very objective of Shari'ah is to promote the welfare of the people, which encompasses the ... Anything that protects or promotes these is considered as serving the maslahah and hence desirable Chapra (1992, p. 1). Similarly, Ibn ...
Global Economic Review, 2008
Applied Economics, 1995
Recent years have witnessed a sharp rise in crime levels in most of the societies across the worl... more Recent years have witnessed a sharp rise in crime levels in most of the societies across the world. Apart from the increasing direct costs involved in the containment/control of crime, the subject societies also bear considerable psychic costs (results of fear of crime or the after effects of crime). These costs of crime are perceived to be higher in developing economies. Economists consider crime to be rational behaviour under specific scenarios is sparse. In this paper, we characterize the rising-crime scenarios in terms of several demographic and economic variables. Regression models relating different types of crime to these societal variables are fitted, using crime data from Malaysia (from published records of the Government of Malaysia). The model fit is found to be extremely good with most of these observational data.
This study addresses the linkages between lending structure and bank risk exposures via the Capit... more This study addresses the linkages between lending structure and bank risk exposures via the Capital Asset Pricing Model (CAPM). Based on the 3-factor CAPM, five risk measures are examined; namely, the market, interest rate, exchange rate, total and unsystematic risk exposure. The influence of lending structure is analysed via four measures, the real estate lending, the specialisation index, the short-term lending stability, and the medium-term lending stability. Our findings show that the lending structure affects the market, interest rate, and unsystematic risk exposures. The stability of lending structure in both the short-term and medium-term period positively influence the market and interest rate risk exposure. On the other hand, the medium-term lending structure stability negatively affects the unsystematic risk exposure. Thus, the policy makers, bankers, and investors should not ignore the significant role of the lending structure when developing a strategic risk management framework. ABSTRAK Kajian ini melihat hubungan antara struktur pinjaman dengan risiko bank menggunakan pendekatan Model Peletakan Harga Aset Modal (CAPM). Berdasarkan 3-faktor CAPM, lima jenis risiko telah dikaji; iaitu, risiko pasaran, risiko kadar faedah, risiko kadar tukaran asing, risiko sistematik dan risiko keseluruhan. Kesan pengaruh struktur pinjaman terhadap risiko dikaji menggunakan empat ukuran, iaitu pinjaman kepada sektor hartanah, indeks konsentrasi, kestabilan struktur pinjaman bagi jangka pendek dan kestabilan struktur pinjaman bagi jangka masa sederhana. Hasil kajian mendapati bahawa struktur pinjaman mempengaruhi risiko pasaran, risiko kadar faedah dan risiko sistematik. Kestabilan struktur pinjaman bagi jangka pendek dan jangka sederhana mempengaruhi risiko pasaran dan risiko kadar faedah secara positif. Manakala, kestabilan struktur pinjaman jangka sederhana mempengaruhi risiko sistematik secara songsang. Oleh itu, para penggubal polisi, pengurus sektor perbankan dan pelabur seharusnya mengambil kira kepentingan peranan struktur pinjaman dalam membangunkan kerangka strategik bagi pengurusan risiko bank.
Humanomics, 2006
Part I of the paper argued that fiat money is counterproductive to the attainment of the maqasid ... more Part I of the paper argued that fiat money is counterproductive to the attainment of the maqasid al-Shari'ah. In the present interest-based fiat monetary system one of the maqasid, namely, the protection of wealth (mal) cannot be realized, which in turn causes the other maqasid to be affected too. In this Part II paper we argue for commodity monies, like the gold dinar and silver dirham, as being compatible with the maqasid. Basically the paper concludes that the Islamic economic system is fundamentally a 'barter' system, i.e. an exchange economy where goods and services are exchanged value for value; but avoids the problems associated with barter by taking some of the commodities exchanged in the economy, that have the characteristics of money, as money; and gold is here argued as the best Shari'ah money.
Fractional reserve banking (FRB) is the basis of the present-day monetary systems. In most countr... more Fractional reserve banking (FRB) is the basis of the present-day monetary systems. In most countries, Islamic Banking and Finance too operates under this principle. This article argues that the FRB has effects on the ownership structure of assets in the economy, and that this effect violates the Islamic principles of ownership. It argues that money creation through FRB is creation of purchasing power out of nothing which brings about unjust ownership transfers of assets in the economy, to the bank effectively, paid for by the whole economy through inflation. This transfer of ownership is not based on human effort by taking on legitimate risks and neither with the knowledge nor the consent of the initial owners. These violate the ownership principles in Islam and tantamount to theft. It also has the elements of riba. On the same basis, Islamic governments should not create fiat money since this is equivalent to taking assets of the people, rich and poor alike, forcefully without compensation. It is, therefore, important that Shariah scholars come up with a fatwa on both the fiat money and the fractional reserve banking system. Such a fatwa is urgent and pertinent before Islamic banking and finance, that operate under these systems, takes a course that may prove to be difficult to reverse later. The Islamic economic and finance system cannot be founded upon a money system that is fundamentally equivalent to theft and riba.
... It examines the Malaysian currency peg that has been in place since September 1998, using sel... more ... It examines the Malaysian currency peg that has been in place since September 1998, using selected key economic indicators to examine whether the currency peg is a sustainable ... For technical questions regarding this item, or to correct its listing, contact: (Reuben T. Campos). ...
Journal of King Abdulaziz University-islamic Economics, 2009
The authors compare the al-Bay' Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (M... more The authors compare the al-Bay' Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (MMP) contracts. The BBA, a murabahah contract, was argued to be problematic and even unIslamic for long-duration contracts. The MMP contract which is a combination of musharakah (partnership) and ijarah (rental) contracts was argued to be a more appealing alternative. In the MMP, the equity of the financier diminishes progressively while, in accordance, the equity of the customer grows. Unlike for the BBA contract, scholars are consensus on the Shari'ah permissibility of the MMP contract. A mathematical derivation for the MMP showed that the formula for the MMP to be similar to the formula used in conventional loans but nonetheless with the interest rate replaced with the rental rate. Therefore, one major advantage of MMP was argued to be that it can avoid interest (riba) totally. Also, unlike under the BBA, the balance of financing, at any point in time, never exceeds the original price of the asset. Nevertheless, some practical issues need to be addressed particularly the means of estimating the rental rate, tax issues, defaults and asset value appreciation. This paper discusses these issues. When not profitable for the banks, when rental rates fall short of interest rates, the MMP can be implemented through cooperatives, which can be also an investment avenue for members.
International Journal of Emerging Markets, 2009
Purpose -The purpose of this paper is to empirically explore market integration among five select... more Purpose -The purpose of this paper is to empirically explore market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore) during the pre-and post-1997 financial crisis periods. Design/methodology/approach -Employs two-step estimation, cointegration and generalized method of moments (GMM). Findings -The study finds that the stock markets in the ASEAN region are cointegrated both during the pre-and post-1997 financial crisis. However, the markets are moving towards a greater integration, particularly during the post-1997 financial crisis. Finally, as measured by the error correction terms, except the emerging market of Indonesia, all other ASEAN markets appear to be the important bearers of short-run adjustment to a shock in the long-run equilibrium relationships in the region both during the pre-and post-crisis periods.
Humanomics, 2006
... The Maqasid al-Shari'ah. Al-Ghazzali states that the very objective of Shari'ah is ... more ... The Maqasid al-Shari'ah. Al-Ghazzali states that the very objective of Shari'ah is to promote the welfare of the people, which encompasses the ... Anything that protects or promotes these is considered as serving the maslahah and hence desirable Chapra (1992, p. 1). Similarly, Ibn ...
Global Economic Review, 2008
Applied Economics, 1995
Recent years have witnessed a sharp rise in crime levels in most of the societies across the worl... more Recent years have witnessed a sharp rise in crime levels in most of the societies across the world. Apart from the increasing direct costs involved in the containment/control of crime, the subject societies also bear considerable psychic costs (results of fear of crime or the after effects of crime). These costs of crime are perceived to be higher in developing economies. Economists consider crime to be rational behaviour under specific scenarios is sparse. In this paper, we characterize the rising-crime scenarios in terms of several demographic and economic variables. Regression models relating different types of crime to these societal variables are fitted, using crime data from Malaysia (from published records of the Government of Malaysia). The model fit is found to be extremely good with most of these observational data.