January 2013
Beginner
888 pages
24h 52m
English
Content preview from Islamic Capital Markets: Theory and PracticeBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Chapter 15
The Banking System
This chapter analyzes the monetary system, which is intimately connected to the capital markets. Both constitute the financial system. The capital market rests on money. The financial system is a pillar for the capital market. Saving in the form of money is mobilized and invested through the capital market as well as the banking system. Perturbation in capital markets translates into perturbation in the banking system, and vice versa. Moreover, monetary policy has a direct bearing on the capital market. Inversely, the capital market may influence money policy. In some countries, money policy is geared to provide liquidity to the capital market and prop up stock prices. Interest rates may be forced to near-zero level in support of the capital market. The government may announce, for instance, that interest rates will be maintained at near-zero level for three years in order to support rising trend in stock prices. Inflation of asset prices and goods prices can be due only to the money supply. The only way to arrest inflation is to keep the money supply fixed.
This chapter addresses the definition of money, fractional banking and the money multiplier, the central bank, the reserves market (i.e., demand and supply of reserves), the regulatory and supervisory role of the central bank, the debate over the role of the central bank, the theory of two interest rates, central banking and financial markets, and the central bank in Islamic finance.
This chapter ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.