Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Introduction Read chapter Read first chapter

2021 | OriginalPaper | Chapter

13. Qard Hasan (Interest-Free Loan) as a Tool for Sustainable Development—Global Evidence

Authors : Rashedul Hasan, M. Kabir Hassan, Mamun Rashid

Published in: Islamic Finance and Sustainable Development

Publisher: Springer International Publishing

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

Qard Hasan is an interest-free loan which complies with the Shari’ah principles. However, Qard Hasan has not been able to attract much attention. In the current study, we examine the importance of Qard Hasan in ensuring sustainable development objectives set by the united nation. We have collected information from the World Bank and Islamic Financial Service Board (IFSB) database to construct an unbalanced panel. The final sample consists of 21 counties and data ranges from 2013 to 2018. Results provided by the study confirms that Qard Hasan can play a decisive role in ensuring sustainable development. Besides, we establish that the inclusion of Qard Hasan in the total Shari’ah-compliant financing portfolio can foster sustainable development. This is the first study that confirms the influence of Qard Hasan finance towards ensuring sustainable development from a global perspective.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter Islamic Finance System as a Catalyst for Sustainability in the Economy
next chapter Contribution of Islamic Banks on Financial and Economic Stability: An Empirical Comparison Between Conventional and Islamic Banks
Appendix
Available only for authorised users
Literature
Abbas, S. Z. M., Rahman, R. A., & Mahenthiran, S. (2009). Ultimate ownership and performance of Islamic Financial Institutions in Malaysia. In Asian Finance Association Conference.
Abel, G. J., Barakat, B., Samir, K. C., & Lutz, W. (2016). Meeting the Sustainable Development Goals leads to lower world population growth. Proceedings of the National Academy of Sciences, 113(50), 14294–14299.
Abrahams, G. (2017). Constructing definitions of sustainable development. Smart and Sustainable Built Environment, 6(1), 34–47.CrossRef
Ahmad, M. (2015). Role of Waqf in sustainable economic development and poverty alleviation: Bangladesh perspective. Journal of Law, Policy and Globalization, 42, 118–130.
Awad, I. (2015). Conducting monetary policy under a fully-fledged Islamic financial system. Journal of Islamic Economics Banking and Finance, 11(1), 23–44.CrossRef
Barbier, E. B., & Burgess, J. C. (2017). The Sustainable Development Goals and the systems approach to sustainability. Economics: The Open-Access, Open-Assessment E-Journal, 11(2017–28), 1–23.
Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency andstability. Journal of Banking Finance, 37(2), 433–447.
Chowdhury, M. J. A. (2009). Microcredit, micro-enterprises, and self-employment of women: Experience from the Grameen Bank in Bangladesh.
Chulho, J., & Ryu, J. E. (2017). Why has US monetary policy become ineffective lately? Applied Economics Letters, 24(13), 956–960.CrossRef
Ciegis, R., Kliucininkas, L., & Ramanauskiene, J. (2011). Assessment of state and tendencies of sustainable development in Lithuania. Management of Environmental Quality: An International Journal, 22(6), 757–768.CrossRef
Farahani, Y. G., & Dastan, M. (2013). Analysis of Islamic banks’ financing and economic growth: A panel cointegration approach. Nternational Journal of Islamic and Middle Eastern Finance and Management, 6(2), 156–172.
Farooq, M. O. (2011). Qard Hasan, Wadi’ah/Amanah and bank deposits: Applications and misapplications of some concepts in Islamic banking. Arab Law Quarterly, 25, 115.CrossRef
Gheeraert, L., & Weill, L. (2015). Does Islamic banking development favor macroeconomic efficiency? Evidence on the Islamic finance-growth nexus. Economic Modelling, 47, 32–39.CrossRef
Grassa, R., & Gazdar, K. (2014). Financial development and economic growth in GCC countries: A comparative study between Islamic and conventional finance. International Journal of Social Economics, 41(6), 493–514.CrossRef
Hachicha, N., & Ben Amar, A. (2015). Does Islamic bank financing contribute to economic growth? The Malaysian case. International Journal of Islamic and Middle Eastern Finance and Management, 8(3), 349–368.CrossRef
Haron, S. (2001). Leading issues in Islamic banking and finance. Journal of Islamic Banking and Finance, 20(1), 17–32.
Hassan, A., & Chachi, A. (2005). The role of Islamic financial institutions in sustainable development. Islamic Finance and Economic Development, 59–93.
Hossain, Z. M. (2009). Why is interest prohibited in Islam? A statistical justification. Humanomics, 25(4), 241–253.CrossRef
Khatat, M. E. H. (2016). Monetary policy in the presence of Islamic banking (WP/16/72).
Kholvadia, F. (2017). Islamic banking in South Africa–form over substance? Meditari Accountancy Research, 25(1), 65–81.CrossRef
Lewis, M. K. (2008). In what ways does Islamic banking differ from conventional finance. Journal of Islamic Economics, Banking and Finance, 4(3), 9–24.
Mirakhor, A., & Iqbal, Z. (2007). Qard hasan microfinance (QHMF), New Horizon. Global Perspective on Islamic Banking and Finance, 164, 1–20.
Naceur, S. B., Barajas, A., & Massara, A. (2017). Can Islamic banking increase financial inclusion? In Handbook of empirical research on Islam and economic life (pp. 1–41). Edward Elgar Publishing.
Nagaoka, S. (2011). Islamic finance for sustainable development: Its historical background and potentialities in the modern world. In 8th International Conference on Islamic Economics and Finance on Sustainable Growth and Inclusive Economic Development from an Islamic Perspective. Doha.
Obaidullah, M., & Khan, T. (2008). Islamic microfinance development: Challenges and initiatives (Policy Dialogue Paper No. 2). Jeddah.
Obaidullah, M., & Latiff, H. S. H. A. (2008). Islamic finance for micro and medium enterprises. Islamic Research &, Centre for Islamic Banking, Finance and Management University.
Sadiq, R., & Mushtaq, A. (2015). The role of Islamic finance in sustainable development. Journal of Islamic Thought and Civilization, 5(1), 47.CrossRef
Salahuddin, M., Alam, K., & Ozturk, I. (2016). Is rapid growth in Internet usage environmentally sustainable for Australia? An empirical investigation. Environmental Science and Pollution Research, 23(5), 4700–4713.
Saqib, L., Zafar, M. A., Khan, K., Roberts, K. W., & Zafar, A. M. (2015). Local agricultural financing and Islamic banks: Is Qard-al-Hassan a possible solution? Journal of Islamic Accounting and Business Research, 6(1), 122–147.CrossRef
Selim, M. (2013). The relative effectiveness of anti-recessionary monetary policy in conventional and Sharia-compliant systems. Journal of Islamic Finance and Business Research, 1(1), 46–57.
Selim, M. (2015). Effectiveness of Sukuk as a tool of monetary policy. Journal of Islamic Economics Banking and Finance, 11(3), 47–60.CrossRef
Selim, M. (2019). The effectiveness of Qard-al-Hasan (interest free loan) as a tool of monetary policy. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 130–151.CrossRef
Selim, M., & Hassan, M. K. (2019). Interest-free monetary policy and its impact on inflation and unemployment rates. ISRA International Journal of Islamic Finance, 11(1), 46–61.CrossRef
Sharmeen, K., Hasan, R., & Miah, M. D. (2019). Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh. Thunderbird International Business Review, 61, 735–744.CrossRef
Shirazi, N. S. (2006). Providing for the resource shortfall for poverty elimination through the institution of Zakat. IIUM Journal of Economics and Management, 1(1), 1–27.
Siddiqi, M. N. (2004). Riba, bank interest and the rationale of its prohibition. Islamic Research and Training Institute, Islamic Development Bank Group.
Siddiqi, M. N. (2006). Shari’ah, economics and the progress of Islamic finance: The role of Shari’ah experts. In Select ethical and methodological issues in Shari’ah-compliant finance.
Sumedrea, S. (2016). Gender diversity and firm performance in seeking for sustainable development. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 9(2), 369.
Ullah, H. (2014). Shari’ah compliance in Islamic banking: An empirical study on selected Islamic banks in Bangladesh. International Journal of Islamic and Middle Eastern Finance and Management, 7(2), 182–199.CrossRef
Velayutham, S. (2015). “Conventional” accounting vs “Islamic” accounting: The debate revisited. Journal of Islamic Accounting and Business Research, 5(2), 126–141.CrossRef
Warde, I. (2011). Islamic finance-bankruptcy, financial distress and debt restructuring: A short report. Cambridge.
Zarabozo, J. A.-D. (2007). Interest and its role in economy and life: An introduction.
Zarrouk, H., Ben Jedidia, K., & Moualhi, M. (2016). Is Islamic bank profitability driven by same forces as conventional banks? International Journal of Islamic and Middle Eastern Finance and Management, 9(1), 46–66.CrossRef
Metadata
Title
Qard Hasan (Interest-Free Loan) as a Tool for Sustainable Development—Global Evidence
Authors
Rashedul Hasan
M. Kabir Hassan
Mamun Rashid
Copyright Year
2021
Book
Islamic Finance and Sustainable Development

Print ISBN: 978-3-030-76015-1

Electronic ISBN: 978-3-030-76016-8

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-76016-8_13

Premium Partner

    Image Credits