Muslims in South Africa live within the framework of a Western economy in which the notion of interest plays a pivotal role. This system does not seem to comply with the strict interpretation of Islamic law, since the Quran prohibits any dealings on the basis of interest and strongly condemns those who continue to deal in interest-based transactions, warning them of a “notice of war from Allah and His Apostle”. Muslims are therefore faced with the dilemma of either participating in the current prevailing economic system and thereby violating the Quranic injunctions prohibiting interest or Riba, or completely withdrawing from participation in this system and conducting their business transactions in accordance with Islamic injunctions. This study is an attempt to examine whether an Islamic banking enterprise within the greater Tshwane area could survive and even flourish in the long term if it were operating within the parameters of Islamic law, thus in the absence of the interest factor. The research methodology employed was that of qualitative research, and the study consists of both a literature and an empirical study. It became evident from the literature review that a bank’s survival within the Western economic order depends on the confidence that its depositors have in it. In an Islamic economic system the ethical and legal components distinguish it from other systems. The most striking feature of the Islamic banking environment is the so-called profit and loss sharing system (PLS). The literature study was complemented by an empirical study. Respondents were interviewed in three categories: Muslim businessmen, Islamic bankers and Islamic religious leaders. An analysis of data from the respondents revealed that they were of the opinion that there was a need for an Islamic bank in order to avoid any interest-based dealings and to operate strictly in accordance with Islamic law and principles. Based on the literature and field study a simple model of an Islamic banking enterprise was constructed which could function within the greater Tshwane area and within the South African economic context, but which would be based on Islamic Shariah principles. In constructing this model due cognisance was taken of the fact that it would prove to be a very difficult task to amend existing banking laws to provide for the easy entry and functioning of an Islamic bank. Based on the literature and empirical study it was concluded that to provide for the easy entry and functioning of an Islamic banking enterprise, it should not be structured or named as a bank but rather as a finance company which would then be able to offer most of the services that are offered by traditional banks but without having to comply with the strict regulations as applicable to traditional banks. The dissertation’s final conclusion and recommendation was thus that an Islamic bank should operate not as a bank but as a finance company, thereby accomplishing its pivotal role to enable Muslims to use these indispensable services successfully while complying wholly with Islamic Shariah law. / PhD (Business Management), North-West University, Vaal Triangle Campus, 2013

Muslims in South Africa live within the framework of a Western economy in which the notion of interest plays a pivotal role. This system does not seem to comply with the strict interpretation of Islamic law, since the Quran prohibits any dealings on the basis of interest and strongly condemns those who continue to deal in interest-based transactions, warning them of a “notice of war from Allah and His Apostle”. Muslims are therefore faced with the dilemma of either participating in the current prevailing economic system and thereby violating the Quranic injunctions prohibiting interest or Riba, or completely withdrawing from participation in this system and conducting their business transactions in accordance with Islamic injunctions. This study is an attempt to examine whether an Islamic banking enterprise within the greater Tshwane area could survive and even flourish in the long term if it were operating within the parameters of Islamic law, thus in the absence of the interest factor. The research methodology employed was that of qualitative research, and the study consists of both a literature and an empirical study. It became evident from the literature review that a bank’s survival within the Western economic order depends on the confidence that its depositors have in it. In an Islamic economic system the ethical and legal components distinguish it from other systems. The most striking feature of the Islamic banking environment is the so-called profit and loss sharing system (PLS). The literature study was complemented by an empirical study. Respondents were interviewed in three categories: Muslim businessmen, Islamic bankers and Islamic religious leaders. An analysis of data from the respondents revealed that they were of the opinion that there was a need for an Islamic bank in order to avoid any interest-based dealings and to operate strictly in accordance with Islamic law and principles. Based on the literature and field study a simple model of an Islamic banking enterprise was constructed which could function within the greater Tshwane area and within the South African economic context, but which would be based on Islamic Shariah principles. In constructing this model due cognisance was taken of the fact that it would prove to be a very difficult task to amend existing banking laws to provide for the easy entry and functioning of an Islamic bank. Based on the literature and empirical study it was concluded that to provide for the easy entry and functioning of an Islamic banking enterprise, it should not be structured or named as a bank but rather as a finance company which would then be able to offer most of the services that are offered by traditional banks but without having to comply with the strict regulations as applicable to traditional banks. The dissertation’s final conclusion and recommendation was thus that an Islamic bank should operate not as a bank but as a finance company, thereby accomplishing its pivotal role to enable Muslims to use these indispensable services successfully while complying wholly with Islamic Shariah law. / PhD (Business Management), North-West University, Vaal Triangle Campus, 2013

Essa pesquisa procura mostrar as possibilidades de relacionamento entre a economia islâmica e o capitalismo, a partir de um de seus pensadores contemporâneos, Aiatolá Muhammad Baqir Assadr, iraquiano que desenvolveu pesquisas nas áreas de jurisprudência islâmica, economia e bancária. Em seus trabalhos, como Iqtsaduna e A Banca Livre de Juros, procuramos explorar os princípios e sua filosofia para o desenvolvimento de um modelo que atendesse as necessidades da população muçulmana. Na primeira parte de nossa pesquisa, procuramos levantar a biografia do autor, assim como seu contexto histórico, com o intuito de compreender as razões de suas críticas aos modelos capitalista e socialista. Num segundo momento, tendo em mente o cenário em que vivia Assadr, foram analisadas suas principais obras na área econômica, onde buscamos compreender sua proposta para um modelo econômico islâmico, que serviu como base para o pensamento moderno. Na parte final desta pesquisa procuramos debater o pensamento econômico dentro do contexto internacional, mostramos também a adaptação da lei islâmica, que pode ser restritiva para o sistema capitalista internacional e seu posicionamento liberal, mas também, buscamos refletir a criação de sistema capitalista islâmico, já que ao que parece, temos diversas faces do sistema econômico islâmico. / This research aims to show the possibilities of relationship between Islamic economics and capitalism, from one of his contemporary thinkers, Ayatollah Muhammad Baqir Sadr. Iraqi who developed research in the areas of Islamic jurisprudence, economics and banking. In his works, as Iqtsaduna and The Interest Free Banking, we try to explore the principles and philosophy to develop a model that would meet the needs of the Muslim population. In the first part of our research, we try to raise the author\'s biography as well as its historical context in order to understand the reasons for their criticism of the capitalist and socialist models. Secondly, bearing in mind the scene in which he lived Sadr, was considered his major works, in the economic area, where we try to understand his proposal for an Islamic economic model, which served as the basis for modern thought. In the final part of this research seek to discuss economic thinking within the international context, we also show the adaptation of Islamic law, which can be restrictive for international capitalist system and its liberal position, but also seek to reflect the creation of Islamic capitalist system, as that it seems we have the various aspects of Islamic economic system.

The dissertation consists of two essays. In the first essay we study the efficiency of banks during the period of (2000-2017) that witnessed a fierce financial crisis in the light of the regulatory acts enacted in response to the crisis (Basel III 2010). We investigate the combined impact of compliance with Tier 1 and Tier 2 capital, common equity Tier 1, and leverage requirements on bank operating efficiency. We measure operational efficiency of 68 insured, U.S. federally and state-chartered, commercial banks, with consolidated assets of $15 billion or more, over a sampling period of 18 years. We seek to identify whether different dimensions of bank regulation are efficient in stabilizing US financial system by improving efficiency of large commercial banks; whether they impede bank efficiency by limiting its risk-taking endeavors and tightening its capital usage; or whether no impact on efficiency exists altogether. We build an empirical model measuring the impact of capital and leverage regulation and credit risk on banks’ operational efficiency. Empirical findings show a positive and statistically significant impact of capital adequacy on operating efficiency of large U.S. commercial banks, with common equity Tier 1 having more power in determining efficiency. Leverage requirements and net charge-offs are also found to be significant determinants that promote bank operating efficiency. In the second essay we investigate determinants for government’s choice of sovereign Sukuk over conventional bonds. Using a sample of 143 sovereign Sukuk and 602 sovereign conventional bonds issued in 16 OIC countries during (2000-2015), we analyze factors affecting the government's choice of employing sovereign Sukuk structure as substitute to sovereign bonds instruments. Results suggest that countries having developed financial markets, higher credit quality, and strong economic and financial prospects are more likely to issue sovereign Sukuk rather than sovereign bonds, mainly as a strategy to diversify and develop their current debt markets by introducing newly-developed debt tools. However, countries with weaker economic and financial indicators are more likely to opt for the classic sovereign bonds. We conclude that government’s choice of sovereign debt is mainly determined by a country’s financial characteristics, macroeconomic indicators and certain specific events.

Essa pesquisa procura mostrar as possibilidades de relacionamento entre a economia islâmica e o capitalismo, a partir de um de seus pensadores contemporâneos, Aiatolá Muhammad Baqir Assadr, iraquiano que desenvolveu pesquisas nas áreas de jurisprudência islâmica, economia e bancária. Em seus trabalhos, como Iqtsaduna e A Banca Livre de Juros, procuramos explorar os princípios e sua filosofia para o desenvolvimento de um modelo que atendesse as necessidades da população muçulmana. Na primeira parte de nossa pesquisa, procuramos levantar a biografia do autor, assim como seu contexto histórico, com o intuito de compreender as razões de suas críticas aos modelos capitalista e socialista. Num segundo momento, tendo em mente o cenário em que vivia Assadr, foram analisadas suas principais obras na área econômica, onde buscamos compreender sua proposta para um modelo econômico islâmico, que serviu como base para o pensamento moderno. Na parte final desta pesquisa procuramos debater o pensamento econômico dentro do contexto internacional, mostramos também a adaptação da lei islâmica, que pode ser restritiva para o sistema capitalista internacional e seu posicionamento liberal, mas também, buscamos refletir a criação de sistema capitalista islâmico, já que ao que parece, temos diversas faces do sistema econômico islâmico. / This research aims to show the possibilities of relationship between Islamic economics and capitalism, from one of his contemporary thinkers, Ayatollah Muhammad Baqir Sadr. Iraqi who developed research in the areas of Islamic jurisprudence, economics and banking. In his works, as Iqtsaduna and The Interest Free Banking, we try to explore the principles and philosophy to develop a model that would meet the needs of the Muslim population. In the first part of our research, we try to raise the author\'s biography as well as its historical context in order to understand the reasons for their criticism of the capitalist and socialist models. Secondly, bearing in mind the scene in which he lived Sadr, was considered his major works, in the economic area, where we try to understand his proposal for an Islamic economic model, which served as the basis for modern thought. In the final part of this research seek to discuss economic thinking within the international context, we also show the adaptation of Islamic law, which can be restrictive for international capitalist system and its liberal position, but also seek to reflect the creation of Islamic capitalist system, as that it seems we have the various aspects of Islamic economic system.