Discussion on Profit and Loss Sharing (PLS) with Dr. Daud Bakar's Thesis - Islamic Economic Forum

Summary of the Discussions on

Profit and Loss Sharing (PLS) with Dr. Daud Bakar's Thesis:

Five (5) Reasons Why Profit and Loss Sharing (PLS) Financing Does Not Fit Islamic Banks

&

5 Reasons Why Islamic Banking Can't Do Real Trading Bearing All The Risks

held in Islamic Economic Forum

Started on 24 March, 2017

Brief Introduction to Islamic Economic Forum:

The Group with the title of “Islamic Economic Forum” is for Islamic Economic Professionals – Sharia Scholars, Economists, Professors/Researchers and IF Practitioners for the purpose of positive discussions on various issues and challenges, facing the Islamic Economic Industry in order to explore ideas and solutions, pertaining to Islamic Economic from an economic as well as Sharia perspective. Since there are already various forums devoted to Islamic Economic, this forum is expected to have more emphasis on critical analysis as well as up to date information with the latest market movements, analysis, and research. The ideas generated will be for the benefit of the Islamic Economic Industry globally.

Administrative Committee of the Forum:

• Dr. Aznan Hassan (Head of Committee)
• Dr. Abdul Bari Mashal (Head, Arabic Group)
• Dr. M. Burhan Arbouna
• Sheikh Ashraf Gomma Ali (Head, English Group)
• Dr. M. Iman Sastra
• Sheikh Ibrahim Musa Tijani
• M. Khalid Hasani (Founder of the Forum)
• Sheikh Siraj Yasini
• Sheikh Abdul Razzak Kaba

Islamic Economics Forum Dialogue:

The discussion was initiated by Sheikh Khalid Hasani posting on behalf of Dr. Mohd Daud Bakar the following:

Dr. Mohd Daud Bakar at Oxford Centre of Islamic Studies (OXCIS):

In my conversation and engagement session, I articulated why profit and loss sharing is not suiltable for Islamic banks and why Islamic banks, while doing Islamic trading, must uphold the main function of financial intermediary so as not to compete with real economic players. Fiduciary functions and trust cannot be compromised no matter what.

I have also mooted that the time has come for big data analytics in our study of Islamic finance and even for Shariah studies.  The result of big data analytics exercise should also be made available to the public at affordable cost....towards democratisation of data.