An analysis ofmaṣlaḥahbased resolutions issued by Bank Negara Malaysia

Abstract

PurposeThis study aims to examine the resolutions issued by the Sharīʿah Advisory Council of Bank Negara Malaysia (SAC-BNM), which have recognizedmaṣlaḥah(public interest) as the basis of ruling to see the extent of its usefulness to the public and the extent of its adherence to themaṣlaḥahparameters. The study will also look into the opposing opinion to identify the basis of rejection and overall implication on Islamic finance based on opposing opinions of SAC-BNM and other bodies of collectiveijtihād(juristic interpretation).Design/methodology/approachThe study uses a qualitative approach by analyzing the SAC-BNM resolutions, which have been resolved based onmaṣlaḥah. The study also applies the comparative approach by comparing the fatwa (Sharīʿah pronouncement) issuing bodies of Malaysia and the Gulf Cooperation Council countries. Furthermore, the secondary data is obtained from sources such asuṣūl al-fiqh(theory of Islamic jurisprudence) books, papers and relevant internet sources.FindingsThe study found that SAC-BNM’s resolutions are in line with some of the majormaṣlaḥahparameters mentioned in theuṣūl al-fiqhsources i.e. must not contradict with the Qurʾān and the Sunnah. While looking at the other two criteria of being in line withijmāʿ(consensus) and having a general impact, such resolutions might not fulfill the criteria of validmaṣlaḥahconsidering, respectively, the stand of collectiveijtihādor the impact on the group of customers and institutions.Originality/valueMost available shari’ah (Islamic law) research considers the perspective of fiqh (Islamic jurisprudence) while analyzing the issue ofmaṣlaḥah. This study aims to conduct analysis based onuṣūl al-fiqh. Moreover,maṣlaḥahitself is a broad concept, which can be abused. Hence, this study discusses the parameters ofmaṣlaḥahto understand the validity of an important juristic tool in Sharīʿah.