Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab
The SPV (special purpose vehicle) is one of the key components of the securitization in both Islamic and conventional finance; however the details of how the transactions are implemented differ subject to the mode of securitization in Islamic and conventional finance. In conventional finance, the ba...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universiti Teknologi Mara Selangor
2020
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| Online Access: | https://ir.uitm.edu.my/id/eprint/32086/1/AJ_MOHAMMAD%20SOLEIMANI%20JEEIR%20B%2020.pdf |
| _version_ | 1825737503329484800 |
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| author | Soleimani, Mohammad Shadab, S. Mustafa |
| author_facet | Soleimani, Mohammad Shadab, S. Mustafa |
| author_sort | Soleimani, Mohammad |
| collection | UITM |
| description | The SPV (special purpose vehicle) is one of the key components of the securitization in both Islamic and conventional finance; however the details of how the transactions are implemented differ subject to the mode of securitization in Islamic and conventional finance. In conventional finance, the bank establishes a SPV and transfers its asset from its balance sheet to the SPV. The assets are used as the collateral for issuing securitized, debt-like instruments. Nevertheless, in Islamic finance mode of securitization, the SPV just services the cash flows for security holders and do participate in debt-issuance. This difference is originated from the risk-sharing principle in asset-based Islamic finance which contrasts with risk-transfer nature of an interest-based conventional finance and results in important differences in ownership right and valuation of SPVs in the two financial systems. |
| first_indexed | 2024-03-06T02:19:07Z |
| format | Article |
| id | oai:ir.uitm.edu.my:32086 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T02:19:07Z |
| publishDate | 2020 |
| publisher | Universiti Teknologi Mara Selangor |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:320862020-07-10T01:25:14Z https://ir.uitm.edu.my/id/eprint/32086/ Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab jeeir Soleimani, Mohammad Shadab, S. Mustafa Malaysia Financial management. Business finance. Corporation finance Finance, Islamic The SPV (special purpose vehicle) is one of the key components of the securitization in both Islamic and conventional finance; however the details of how the transactions are implemented differ subject to the mode of securitization in Islamic and conventional finance. In conventional finance, the bank establishes a SPV and transfers its asset from its balance sheet to the SPV. The assets are used as the collateral for issuing securitized, debt-like instruments. Nevertheless, in Islamic finance mode of securitization, the SPV just services the cash flows for security holders and do participate in debt-issuance. This difference is originated from the risk-sharing principle in asset-based Islamic finance which contrasts with risk-transfer nature of an interest-based conventional finance and results in important differences in ownership right and valuation of SPVs in the two financial systems. Universiti Teknologi Mara Selangor 2020-01 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32086/1/AJ_MOHAMMAD%20SOLEIMANI%20JEEIR%20B%2020.pdf Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab. (2020) Journal of Emerging Economies & Islamic Research <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_=26_Islamic_Research/>, 8 (1). pp. 1-11. ISSN 2289-2559 |
| spellingShingle | Malaysia Financial management. Business finance. Corporation finance Finance, Islamic Soleimani, Mohammad Shadab, S. Mustafa Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title | Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title_full | Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title_fullStr | Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title_full_unstemmed | Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title_short | Roles and functions of special purpose vehicles (SPV): a comparison between Islamic and conventional finance / Mohammad Soleimani and S. Mustafa Shadab |
| title_sort | roles and functions of special purpose vehicles spv a comparison between islamic and conventional finance mohammad soleimani and s mustafa shadab |
| topic | Malaysia Financial management. Business finance. Corporation finance Finance, Islamic |
| url | https://ir.uitm.edu.my/id/eprint/32086/1/AJ_MOHAMMAD%20SOLEIMANI%20JEEIR%20B%2020.pdf |
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