Islamic Finance Practices Experiences from South Eastern Europe

This book discusses carefully selected topics in Islamic banking and finance (IBF) in South Eastern Europe (SEE) as one of the fastest growing areas in global finance. IBF originated within various Islamic banks, Islamic windows, investment funds, Takaful companies, and other financial institutions and has resulted in various global products. Although it is still in an early phase in SEE, IBF has developed rapidly in the last decade and has created a need for research on related topics, from the fundamental principles of IBF to the SCR, endowments and investment instruments to Islamic banking practices.

This is our second book published as a result of the Sarajevo Islamic and Finance conferences (SIFEC). This conference traditionally gathers Islamic banking, economics, and finance academicians, experts, and students all over the world who discuss a wide range of topics in this field, focusing on the SEE.

Consisting of seven chapters presenting original research, this book is a valuable resource for researchers as well as for practitioners and potential investors in IBF, especially in SEE.

Chapter 1: History of Economic thought hidden within the archives of Abrahamic Religions.- Chapter 2: Exploring the epistemology of utility function in Islamic economics: foundation of Islamic finance.- Chapter 3: Islamic approach to corporate social responsibility in scientific research with CSR overview in banking sector of Bosnia and Herzegovina.- Chapter 4: Potentials of Waqfs from a Socio-economic perspective: the case of Bosnia and Herzegovina.- Chapter 5: Efficient diversification with Shariah-compliant stocks: evidence from the south-east European capital markets.- Chapter 6: Credit risk assessment for an Islamic bank in Bosnia and Herzegovina.- Chapter 7: Market rent value as a basis for profit margin calculation in home financings based on diminishing Musharakah with Ijarah – case study of Bosnia and Herzegovina.

Velid Efendic is an Associate Professor in the field of finance at the University of Sarajevo (UoS), Bosnia and Herzegovina. He was involved in the establishment and management of the Banking Academy and Center for Islamic Economics Banking and Finance at UoS, where he serves as the Head. Since 2013 he serves as the head of the international Joint degree MA programme "Islamic Banking" in collaboration between UoS and University of Bolton, UK. In 2017, Efendic was appointed as a Management Board member in the Banking Agency for supervision and regulation of banks in the Federation of Bosnia and Herzegovina (FBiH) for the mandate of five year. He has been engaged as a consultant and researcher in many research and investment projects in a variety of public, private, and non-governmental, national, and international institutions and companies.

For the last ten years, Efendic was the head, author, organizer, and lecturer at many practical/professional seminars and training courses in various fields of banking and Islamic banking and finance. He is one of the founders of the European Association for Islamic Economics, Banking and Finance.