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      Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

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          Abstract

          The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

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          Most cited references145

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          Feasibility of controlling COVID-19 outbreaks by isolation of cases and contacts

          Summary Background Isolation of cases and contact tracing is used to control outbreaks of infectious diseases, and has been used for coronavirus disease 2019 (COVID-19). Whether this strategy will achieve control depends on characteristics of both the pathogen and the response. Here we use a mathematical model to assess if isolation and contact tracing are able to control onwards transmission from imported cases of COVID-19. Methods We developed a stochastic transmission model, parameterised to the COVID-19 outbreak. We used the model to quantify the potential effectiveness of contact tracing and isolation of cases at controlling a severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)-like pathogen. We considered scenarios that varied in the number of initial cases, the basic reproduction number (R 0), the delay from symptom onset to isolation, the probability that contacts were traced, the proportion of transmission that occurred before symptom onset, and the proportion of subclinical infections. We assumed isolation prevented all further transmission in the model. Outbreaks were deemed controlled if transmission ended within 12 weeks or before 5000 cases in total. We measured the success of controlling outbreaks using isolation and contact tracing, and quantified the weekly maximum number of cases traced to measure feasibility of public health effort. Findings Simulated outbreaks starting with five initial cases, an R 0 of 1·5, and 0% transmission before symptom onset could be controlled even with low contact tracing probability; however, the probability of controlling an outbreak decreased with the number of initial cases, when R 0 was 2·5 or 3·5 and with more transmission before symptom onset. Across different initial numbers of cases, the majority of scenarios with an R 0 of 1·5 were controllable with less than 50% of contacts successfully traced. To control the majority of outbreaks, for R 0 of 2·5 more than 70% of contacts had to be traced, and for an R 0 of 3·5 more than 90% of contacts had to be traced. The delay between symptom onset and isolation had the largest role in determining whether an outbreak was controllable when R 0 was 1·5. For R 0 values of 2·5 or 3·5, if there were 40 initial cases, contact tracing and isolation were only potentially feasible when less than 1% of transmission occurred before symptom onset. Interpretation In most scenarios, highly effective contact tracing and case isolation is enough to control a new outbreak of COVID-19 within 3 months. The probability of control decreases with long delays from symptom onset to isolation, fewer cases ascertained by contact tracing, and increasing transmission before symptoms. This model can be modified to reflect updated transmission characteristics and more specific definitions of outbreak control to assess the potential success of local response efforts. Funding Wellcome Trust, Global Challenges Research Fund, and Health Data Research UK.
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            COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach

            In this paper, we analyze the connectedness between the recent spread of COVID-19, oil price volatility shock, the stock market, geopolitical risk and economic policy uncertainty in the US within a time-frequency framework. The coherence wavelet method and the wavelet-based Granger causality tests applied to US recent daily data unveil the unprecedented impact of COVID-19 and oil price shocks on the geopolitical risk levels, economic policy uncertainty and stock market volatility over the low frequency bands. The effect of the COVID-19 on the geopolitical risk substantially higher than on the US economic uncertainty. The COVID-19 risk is perceived differently over the short and the long-run and may be firstly viewed as an economic crisis. Our study offers several urgent prominent implications and endorsements for policymakers and asset managers.
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              Beware of the second wave of COVID-19

              The outbreak of coronavirus disease 2019 (COVID-19), which began in Wuhan, China, in late 2019, has spread to 203 countries as of March 30, 2020, and has been officially declared a global pandemic. 1 With unprecedented public health interventions, local transmission of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) appears now to have been contained in China. Multiple countries are now experiencing the first wave of the COVID-19 epidemic; thus, gaining an understanding of how these interventions prevented the transmission of SARS-CoV-2 in China is urgent. In The Lancet, Kathy Leung and colleagues 2 report their assessment of the transmissibility and severity of COVID-19 during the first wave in four cities and ten provinces in China outside Hubei. The study estimated the instantaneous reproduction number in the selected locations decreased substantially after non-pharmaceutical control measures were implemented on Jan 23, 2020, and has since remained lower than 1. The transmission of SARS-CoV-2 in these locations was mainly driven by imported cases from Hubei until late January, which is, to some extent, similar to the transmission in January in several countries. The epidemics in Chinese provinces outside Hubei were believed to be driven by local transmission dynamics after Jan 31; 3 therefore, the findings of Leung and colleagues' study highlight the fact that the package of non-pharmaceutical interventions in China has the ability to contain transmission—not only imported cases, but also local transmission. The epidemic is accelerating rapidly in multiple countries, indicating shortfalls in preparedness. Given that multiple countries imposed travel restrictions against China in late January, there is a need to model whether earlier implementation of interventions such as social distancing, population behavioural change, and contact tracing would have been able to contain or mitigate the epidemic. Leung and colleagues also modelled the potential adverse consequences of premature relaxation of interventions, and found that such a decision might lead to transmissibility exceeding 1 again—ie, a second wave of infections. The finding is critical to governments globally, because it warns against premature relaxation of strict interventions. However, the effect of each intervention, or which one was the most effective in containing the spread of the virus, was not addressed in the study. While interventions to control the spread of SARS-CoV-2 are in place, countries will need to work toward returning to normalcy; thus, knowledge of the effect of each intervention is urgently required. Air travel data were used to model the effect of travel restrictions on delaying overall epidemic progression, and were found to have a marked effect at the international scale, but only a 3–5 day delay within China. 4 A study 5 focused on the effects of extending or relaxing physical distancing control measures in Wuhan has suggested that if the measures are gradually relaxed in March, a second wave of cases might occur in the northern hemisphere mid-summer. Country-specific models of the effects of travel restrictions and social distancing, as well as the alternative strategies after the relaxation of these interventions, such as the use of face masks, temperature checks, and contact tracing, are now needed. Case fatality rate (CFR) is one of the important unknowns of COVID-19. Leung and colleagues estimated the confirmed CFR (cCFR) outside Hubei was 0·98% (95% CI 0·82–1·16), which was consistent with the report from the Chinese Center for Disease Control and Prevention. 6 Since the epidemics in the studied locations did not overwhelm the health-care capacities, the data on the number of confirmed cases are believed to be reliable. Leung and colleagues also found the cCFR was correlated with provincial per capita gross domestic product and the availability of hospital beds per 10 000. In Wuhan, the CFR was up to 5·08% by March 28, 2020. 7 The remarkable difference in the CFRa between these locations and Wuhan might be attributed to the difference in the degrees of health-care capacity. Therefore, consideration should be given to the variations in health-care capacity when implementing interventions. While the epidemic is growing exponentially, the health-care system will face severe burdens. Governments should act and prepare immediately to ensure that the health-care system has adequate labour, resources, and facilities to minimise the mortality risk of COVID-19. © 2020 Tingshu Wang/Reuters 2020 Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
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                Author and article information

                Contributors
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                Journal
                Journal of Open Innovation: Technology, Market, and Complexity
                JOItmC
                MDPI AG
                2199-8531
                June 2021
                May 17 2021
                : 7
                : 2
                : 136
                Article
                10.3390/joitmc7020136
                3c40a62a-04a4-4d47-904e-28d979c8bb93
                © 2021

                https://creativecommons.org/licenses/by/4.0/

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