Pub Date : 2017-12-25DOI: 10.55188/ijifarabic.v8i2.275
Younes Soualhi
The research addresses the development of waqf assets through Islamic banking in Malaysia. After a successful journey in providing Islamic financial services, Islamic banks in Malaysia have recently opted to venture into waqf to fulfil their social responsibility without completely compromising the commercial goals. This research aims at highlighting the integral framework between Islamic banking and waqf in Malaysia, with a special focus on two Islamic banks, Bank Islam and Bank Muamalat, as the prime stakeholders in this nascent sector. The research also aims at highlighting both positive and negative aspects of the new experience as well the challenges lying ahead. In terms of methodology, the research adopts a qualitive approach employing the inductive method to trace primary and secondary data on the topic and the descriptive method to describe the integrative frame of the waqf-banking intermediation. The research also adopts the analytical method to evaluate the feasibility of the framework in the Malaysian context. The research found that the new experience of waqf-banking intermediation is very promising due to the ample encouragement provided by the regulators and the appetite that the two banks have shown so far. However, the researcher is of the view that it is too early to conclude that the experience is successful due to the small size of the sub-sector in terms of assets and instruments, let alone the challenges that lie ahead. The research has also concluded that the best framework to pursue this cause is the Value Based Intermediation (VBI) recently championed by the Central Bank of Malaysia as it is wider than Socially Responsible Investment (SRI) . The research has recommended, among other things, the drafting of specific legislation and guidelines to govern the relationship between Islamic banking and waqf. These should regulate the rights and responsibilities of each sector when they undertake joint activities that simultaneously seek to achieve profit-making and charitable objectives.
{"title":"Development of Waqf assest through Islamic banking in Malaysia","authors":"Younes Soualhi","doi":"10.55188/ijifarabic.v8i2.275","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i2.275","url":null,"abstract":"The research addresses the development of waqf assets through Islamic banking in Malaysia. After a successful journey in providing Islamic financial services, Islamic banks in Malaysia have recently opted to venture into waqf to fulfil their social responsibility without completely compromising the commercial goals. This research aims at highlighting the integral framework between Islamic banking and waqf in Malaysia, with a special focus on two Islamic banks, Bank Islam and Bank Muamalat, as the prime stakeholders in this nascent sector. The research also aims at highlighting both positive and negative aspects of the new experience as well the challenges lying ahead. In terms of methodology, the research adopts a qualitive approach employing the inductive method to trace primary and secondary data on the topic and the descriptive method to describe the integrative frame of the waqf-banking intermediation. The research also adopts the analytical method to evaluate the feasibility of the framework in the Malaysian context. The research found that the new experience of waqf-banking intermediation is very promising due to the ample encouragement provided by the regulators and the appetite that the two banks have shown so far. However, the researcher is of the view that it is too early to conclude that the experience is successful due to the small size of the sub-sector in terms of assets and instruments, let alone the challenges that lie ahead. The research has also concluded that the best framework to pursue this cause is the Value Based Intermediation (VBI) recently championed by the Central Bank of Malaysia as it is wider than Socially Responsible Investment (SRI) . The research has recommended, among other things, the drafting of specific legislation and guidelines to govern the relationship between Islamic banking and waqf. These should regulate the rights and responsibilities of each sector when they undertake joint activities that simultaneously seek to achieve profit-making and charitable objectives.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121219370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-12-25DOI: 10.55188/ijifarabic.v8i2.277
Miftah Boujalal
The Algerian state has adopted the conventional financial system, but it has recently begun studying the possibility of officially adopting what is called Islamic banking. What that means is recognizing it with a legislative act distinct in its principles, regulations and practice. This was after international recognition of the superiority of this alternative financial system and the after rapid sanction of it by various countries and legal systems in the east and west it through their financial and monetary agencies. However, while waiting for this distinctive legislation to materialize in Algeria, Islamic banking as a sanctioned system for organizing and stimulating trade cannot be considered a stranger to the Algerian legal system, even if most of that system is taken from France. It is, in fact, able to adopt Islamic finance without substantial changes. The Algerian legal system that was developed since Algeria’s political independence from France has recognized the special features of the Shari’ah rules that govern commercial and financial transactions. These are embodied in a framework of various dimensions which bestows the required coordination between the firmly established Shari’ah principles and the ijtihad-based rules appropriate to the legal environment in effect at the time. Based on this, it would be beneficial to explain the ways that the general rules of Islamic finance are consistent with the Algerian legal code, whether from the angle of its laws that deal with transactions or the rules that deal with the regulatory structures that actually guarantee the legality or credibility of Islamic financial products.
{"title":"The Appropriateness of the Legal System to Islamic Finance in the Algerian Model","authors":"Miftah Boujalal","doi":"10.55188/ijifarabic.v8i2.277","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i2.277","url":null,"abstract":"The Algerian state has adopted the conventional financial system, but it has recently begun studying the possibility of officially adopting what is called Islamic banking. What that means is recognizing it with a legislative act distinct in its principles, regulations and practice. This was after international recognition of the superiority of this alternative financial system and the after rapid sanction of it by various countries and legal systems in the east and west it through their financial and monetary agencies. However, while waiting for this distinctive legislation to materialize in Algeria, Islamic banking as a sanctioned system for organizing and stimulating trade cannot be considered a stranger to the Algerian legal system, even if most of that system is taken from France. It is, in fact, able to adopt Islamic finance without substantial changes. The Algerian legal system that was developed since Algeria’s political independence from France has recognized the special features of the Shari’ah rules that govern commercial and financial transactions. These are embodied in a framework of various dimensions which bestows the required coordination between the firmly established Shari’ah principles and the ijtihad-based rules appropriate to the legal environment in effect at the time. Based on this, it would be beneficial to explain the ways that the general rules of Islamic finance are consistent with the Algerian legal code, whether from the angle of its laws that deal with transactions or the rules that deal with the regulatory structures that actually guarantee the legality or credibility of Islamic financial products.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129716502","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-12-25DOI: 10.55188/ijifarabic.v8i2.276
Abdalla Badarin
This study reviews and evaluates the banking legislation regarding Shari’ah supervision of Islamic banks in Jordan to determine the positive and negative aspects and to suggest proposals to improve its level. The study found a number of positive aspects to the legislation; however, it suffers from the following: not paying sufficient attention to diversity in the members' academic qualifications, failing to clarify the mechanism of the Shari’ah board’s work at various stages, shortcoming in the requirements for realizing its independence, not determining the maximum number of memberships of a member in other financial institutions’ boards, not specifying the relationship between the Shari’ah supervisory board and the internal Shari’ah audit, not dealing with inadequate Shari’ah supervisory board performance of duties and how to treat the possible effects of that inadequacy. The study recommended granting national institutions such as the central bank or General Iftaa' Department the powers of appointment and dismissal, determining the remuneration of members, requiring members to fully devote themselves to this function, placing a limit on the number of boards that any person can be member of at the same time, and placing the internal Shari’ah audit under the supervision of the Shari’ah supervisory board.
{"title":"Shari'a Supervisory Legislation on Islamic Banks in Jordan: Reality and Hope","authors":"Abdalla Badarin","doi":"10.55188/ijifarabic.v8i2.276","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i2.276","url":null,"abstract":"This study reviews and evaluates the banking legislation regarding Shari’ah supervision of Islamic banks in Jordan to determine the positive and negative aspects and to suggest proposals to improve its level. The study found a number of positive aspects to the legislation; however, it suffers from the following: not paying sufficient attention to diversity in the members' academic qualifications, failing to clarify the mechanism of the Shari’ah board’s work at various stages, shortcoming in the requirements for realizing its independence, not determining the maximum number of memberships of a member in other financial institutions’ boards, not specifying the relationship between the Shari’ah supervisory board and the internal Shari’ah audit, not dealing with inadequate Shari’ah supervisory board performance of duties and how to treat the possible effects of that inadequacy. The study recommended granting national institutions such as the central bank or General Iftaa' Department the powers of appointment and dismissal, determining the remuneration of members, requiring members to fully devote themselves to this function, placing a limit on the number of boards that any person can be member of at the same time, and placing the internal Shari’ah audit under the supervision of the Shari’ah supervisory board.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128129906","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-06-26DOI: 10.55188/ijifarabic.v8i1.281
Bouebdelli Ahlam, Ben Amer Zaineddine
This study aims to address the problem of combining Shariah compliance and adequacy of liquidity management in Islamic banks when using tawarruq. It seeks to discover whether Islamic banks are in fact able to combine the two. The study found that Islamic banks have significantly developed tawarruq until it has reached a level of efficiently managing excesses and deficits of liquidity, but that was accomplished at the expense of Shariah compliance. The more distant tawarruq got from Shariah standards, the more efficient it became. Islamic banks will not be able to combine the two because they are contradictory. This is especially true in the international markets. It is so on a lower level in local markets, where a relatively better combination can be achieved, but that is only in relative terms.
{"title":"Banking Tawarruq between Shariah Compliance and Adequate Liquidity Management in Islamic Banks","authors":"Bouebdelli Ahlam, Ben Amer Zaineddine","doi":"10.55188/ijifarabic.v8i1.281","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i1.281","url":null,"abstract":"This study aims to address the problem of combining Shariah compliance and adequacy of liquidity management in Islamic banks when using tawarruq. It seeks to discover whether Islamic banks are in fact able to combine the two. The study found that Islamic banks have significantly developed tawarruq until it has reached a level of efficiently managing excesses and deficits of liquidity, but that was accomplished at the expense of Shariah compliance. The more distant tawarruq got from Shariah standards, the more efficient it became. Islamic banks will not be able to combine the two because they are contradictory. This is especially true in the international markets. It is so on a lower level in local markets, where a relatively better combination can be achieved, but that is only in relative terms.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127519806","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-06-26DOI: 10.55188/ijifarabic.v8i1.279
Shadi Khalifa Mohammed Al Ahmad, Ibrahim Abdel Halim Abada
The financing of usufruct and services is considered one of the most important innovations in the financing methods of Islamic banking. It is still the subject of investigation and debate among scholars, jurists and researchers. Since the usufruct that we are examining relates to a Shariah ruling, i.e., the ability to perform hajj, we must explain the opinions of jurists regarding it and whether it permissible to fund hajj by what is known as a forward lease of specified usufruct in the liability of the lessor. Financial institutions employ it in the context of what is called a contract of “murabahah in usufruct”. The financial institution purchases the usufruct from a service provider and then resells it to the seeker of financing with a markup. The financial institution is able to reach and sign an agreement with the seeker of financing before purchasing the usufruct because the object of the contract is a liability. That means it does not have to be existent when signing the contract; it only needs to be available at the time of delivery. This study investigates the nature of this contemporary funding method by describing it and identifying how it is classified in the Shariah. Moreover, it examines the economic and social effects on the institution and the individual. In particular, it conducts an analytic study of the contract used by Jordan Islamic bank to finance this service
{"title":"Financing Hajj and ‘Umrah by Islamic Financial Institutions: A Case Study of Jordan Islamic Bank","authors":"Shadi Khalifa Mohammed Al Ahmad, Ibrahim Abdel Halim Abada","doi":"10.55188/ijifarabic.v8i1.279","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i1.279","url":null,"abstract":"The financing of usufruct and services is considered one of the most important innovations in the financing methods of Islamic banking. It is still the subject of investigation and debate among scholars, jurists and researchers. Since the usufruct that we are examining relates to a Shariah ruling, i.e., the ability to perform hajj, we must explain the opinions of jurists regarding it and whether it permissible to fund hajj by what is known as a forward lease of specified usufruct in the liability of the lessor. Financial institutions employ it in the context of what is called a contract of “murabahah in usufruct”. The financial institution purchases the usufruct from a service provider and then resells it to the seeker of financing with a markup. The financial institution is able to reach and sign an agreement with the seeker of financing before purchasing the usufruct because the object of the contract is a liability. That means it does not have to be existent when signing the contract; it only needs to be available at the time of delivery. This study investigates the nature of this contemporary funding method by describing it and identifying how it is classified in the Shariah. Moreover, it examines the economic and social effects on the institution and the individual. In particular, it conducts an analytic study of the contract used by Jordan Islamic bank to finance this service","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129241462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-06-26DOI: 10.55188/ijifarabic.v8i1.278
Abdul Razzaq Abdul Majid Alaro
This study aims at establishing the Shariah provisions on a vendee’s right to disclosure of sukuk assets’ ownership in Islamic Finance. Three main areas were the focus of the paper, to wit: the meaning and types of disclosure; classical cases of disclosure under Islamic jurisprudence, and the position of Shariah on the disclosure of ownership of sukuk assets to the vendee. The methodology adopted for the work is both descriptive and analytical, with emphasis on citation of relevant authorities. A key finding of the study is that disclosure, if properly enforced, could serve as an alternative regulatory mechanism, particularly in jurisdictions where there are no central regulatory authorities for Islamic banks or Islamic capital markets. The study further argued that the potential realms of disclosure vis a vis the Islamic sukuk assets’ ownership are three. When the two parties are silent, when the disclosure made is fraudulent, and when the disclosure itself amounts to ‘half-truth’ in law. The study recommends that disclosure with respect to ownership of sukuk assets should be made a benchmark determining whether or not a sukuk issuance is Shariah compliant. Similarly, the regulatory authorities should mandate sukuk issuing houses to make full disclosure of the status and extent of the vendee’s ownership of sukuk underlying assets.
{"title":"A Fiqhi (Islamic Law) Analysis of the Vendee’s Right to Disclosure in Respect of Sukuk Assets’ Ownership","authors":"Abdul Razzaq Abdul Majid Alaro","doi":"10.55188/ijifarabic.v8i1.278","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i1.278","url":null,"abstract":"This study aims at establishing the Shariah provisions on a vendee’s right to disclosure of sukuk assets’ ownership in Islamic Finance. Three main areas were the focus of the paper, to wit: the meaning and types of disclosure; classical cases of disclosure under Islamic jurisprudence, and the position of Shariah on the disclosure of ownership of sukuk assets to the vendee. The methodology adopted for the work is both descriptive and analytical, with emphasis on citation of relevant authorities. A key finding of the study is that disclosure, if properly enforced, could serve as an alternative regulatory mechanism, particularly in jurisdictions where there are no central regulatory authorities for Islamic banks or Islamic capital markets. The study further argued that the potential realms of disclosure vis a vis the Islamic sukuk assets’ ownership are three. When the two parties are silent, when the disclosure made is fraudulent, and when the disclosure itself amounts to ‘half-truth’ in law. The study recommends that disclosure with respect to ownership of sukuk assets should be made a benchmark determining whether or not a sukuk issuance is Shariah compliant. Similarly, the regulatory authorities should mandate sukuk issuing houses to make full disclosure of the status and extent of the vendee’s ownership of sukuk underlying assets.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128357458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-06-26DOI: 10.55188/ijifarabic.v8i1.280
Suleiman Nasser, Mouna Younes
For the last four decades, the Basel Committee on Banking Supervision has worked to establish an international standard for capital adequacy that measures the amount of coverage and protection provided by the banks’ equity for the depositors’ money. This is by establishing a relationship between the bank’s capital on the one hand and its assets and liabilities on the other hand. The Committee has continued to upgrade the standard in line with developments in the knowledge of risk management. Central banks throughout the world have compelled the banks under their supervision, including Islamic banks, to apply this standard. This research aims to study the effective relationship between capital adequacy and profitability ratios of Islamic banks through an empirical study. It uses a sample of the world’s largest Islamic banks in terms of profits (15 of 25 Islamic financial institutions according to the availability of the profit data) during the period 2011 - 2015. To investigate the effect of the independent variables on the dependent ones, two simple linear regression models are used, employing the statistical program Eviews 7. The results show a positive correlation; whenever an Islamic bank tried to raise the capital adequacy ratio the profitability indicators represented by ROE .(return on equity) and ROA (return on assets) also increased However, the Basel standard was established for conventional banks, and the IFSB in Malaysia has developed a standard especially for calculating capital adequacy for Islamic banks by adapting the Basel standard to the nature of Islamic banks’ business. Therefore, the research recommends the application of this standard because it would further increase the profitability of Islamic banks.
过去40年来，巴塞尔银行监管委员会(Basel Committee on Banking Supervision)一直致力于建立资本充足率的国际标准，以衡量银行股本对储户资金的覆盖和保护程度。这是通过建立银行资本与资产负债之间的关系来实现的。委员会根据风险管理知识的发展，继续提高标准。世界各地的中央银行都迫使其监管下的银行，包括伊斯兰银行，采用这一标准。本研究旨在通过实证研究来研究伊斯兰银行资本充足率与盈利能力之间的有效关系。它使用了2011年至2015年期间世界上最大的伊斯兰银行利润样本(25家伊斯兰金融机构中的15家，根据利润数据的可用性)。为了研究自变量对因变量的影响，使用了两个简单的线性回归模型，使用统计程序Eviews 7。结果显示出正相关关系;每当伊斯兰银行试图提高资本充足率时，以ROE(股本回报率)和ROA(资产回报率)为代表的盈利指标也会增加。然而，巴塞尔标准是为传统银行建立的，马来西亚的IFSB通过将巴塞尔标准适应伊斯兰银行的业务性质，制定了一项专门用于计算伊斯兰银行资本充足率的标准。因此，研究建议采用这一标准，因为这将进一步提高伊斯兰银行的盈利能力。
{"title":"The Effect of Capital Adequacy on the Profits of Islamic Banks. A Quantitative Study of the Largest Islamic Banks in Terms of Profits during the Period 2011-2015","authors":"Suleiman Nasser, Mouna Younes","doi":"10.55188/ijifarabic.v8i1.280","DOIUrl":"https://doi.org/10.55188/ijifarabic.v8i1.280","url":null,"abstract":"For the last four decades, the Basel Committee on Banking Supervision has worked to establish an international standard for capital adequacy that measures the amount of coverage and protection provided by the banks’ equity for the depositors’ money. This is by establishing a relationship between the bank’s capital on the one hand and its assets and liabilities on the other hand. The Committee has continued to upgrade the standard in line with developments in the knowledge of risk management. Central banks throughout the world have compelled the banks under their supervision, including Islamic banks, to apply this standard. This research aims to study the effective relationship between capital adequacy and profitability ratios of Islamic banks through an empirical study. It uses a sample of the world’s largest Islamic banks in terms of profits (15 of 25 Islamic financial institutions according to the availability of the profit data) during the period 2011 - 2015. To investigate the effect of the independent variables on the dependent ones, two simple linear regression models are used, employing the statistical program Eviews 7. The results show a positive correlation; whenever an Islamic bank tried to raise the capital adequacy ratio the profitability indicators represented by ROE .(return on equity) and ROA (return on assets) also increased However, the Basel standard was established for conventional banks, and the IFSB in Malaysia has developed a standard especially for calculating capital adequacy for Islamic banks by adapting the Basel standard to the nature of Islamic banks’ business. Therefore, the research recommends the application of this standard because it would further increase the profitability of Islamic banks.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127868705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2016-12-26DOI: 10.55188/ijifarabic.v7i2.285
Mostafa Bassam Najem
This research sheds light on three essential issues for those dealing with the dilemmas of contemporary Islamic economics. The first concerns legal stratagems (hiyal): their types, their legitimacy and the effect of the motive for using them on the legal ruling. The second concerns combining the opinions of more than one madhab (talfīq), its relation to the issue of pursuing allowances (tatabbu’ al-rukhas) in the contemporary era and the parameters that must be observed when choosing the allowances of scholars. The third is the issue of adopting overruled (marjūh) opinions and abandoning the weighty (rājih) ones in the famous juristic schools (madhhabs). The conditions are identified which must be fulfilled in order for adoption of an overruled opinion to be taken seriously. The researcher used an inductive descriptive method by gathering the material relevant to the issues, arranging it logically, and providing explanations as needed to clarify the importance of these issues in regulating the Islamic banking industry. The researcher has discussed a few contemporary applications related to these issues, clarifying the differing views of contemporary jurists in understanding them. The researcher has found that there is a difference between legal stratagems to circumvent the Sharī‘ah and facilitating people’s affairs by searching for legitimate solutions (makhārij). This can be discerned by the motive for the contract and the circumstantial evidence that clarifies that motive and provides a basis for judgment upon it. Moreover, it is found that talfīq is not totally forbidden; in fact, current reality with its complications requires scholars to expand their selections. It also turns out that some jurists’ independent judgments are not within the scope of talfīq, as was thought by some scholars. The scholars’ selection of some of the marjūh opinions in the madhhabs must be methodical, according to certain rules, and this selection ultimately depends on legitimate benefit that is approved by the majority of scholars.
{"title":"Issues Related to the Higher Objectives of the Sharī‘ah in Order to Tighten the Practice of Islamic Banking","authors":"Mostafa Bassam Najem","doi":"10.55188/ijifarabic.v7i2.285","DOIUrl":"https://doi.org/10.55188/ijifarabic.v7i2.285","url":null,"abstract":"This research sheds light on three essential issues for those dealing with the dilemmas of contemporary Islamic economics. The first concerns legal stratagems (hiyal): their types, their legitimacy and the effect of the motive for using them on the legal ruling. The second concerns combining the opinions of more than one madhab (talfīq), its relation to the issue of pursuing allowances (tatabbu’ al-rukhas) in the contemporary era and the parameters that must be observed when choosing the allowances of scholars. The third is the issue of adopting overruled (marjūh) opinions and abandoning the weighty (rājih) ones in the famous juristic schools (madhhabs). The conditions are identified which must be fulfilled in order for adoption of an overruled opinion to be taken seriously. The researcher used an inductive descriptive method by gathering the material relevant to the issues, arranging it logically, and providing explanations as needed to clarify the importance of these issues in regulating the Islamic banking industry. The researcher has discussed a few contemporary applications related to these issues, clarifying the differing views of contemporary jurists in understanding them. The researcher has found that there is a difference between legal stratagems to circumvent the Sharī‘ah and facilitating people’s affairs by searching for legitimate solutions (makhārij). This can be discerned by the motive for the contract and the circumstantial evidence that clarifies that motive and provides a basis for judgment upon it. Moreover, it is found that talfīq is not totally forbidden; in fact, current reality with its complications requires scholars to expand their selections. It also turns out that some jurists’ independent judgments are not within the scope of talfīq, as was thought by some scholars. The scholars’ selection of some of the marjūh opinions in the madhhabs must be methodical, according to certain rules, and this selection ultimately depends on legitimate benefit that is approved by the majority of scholars.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115338270","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2016-12-26DOI: 10.55188/ijifarabic.v7i2.283
Aouissi Amin, Moumeni Smail
Throughout history, crises have plagued financial and economic systems on the national and international level. This situation calls for a review of the factors of stability in both the financial and economic system. As a first step, we review the most important previous studies related to the problem of this article: measuring the impact of crises on economic stability, how to maintain stability, and the suggestions offered to solve the problem that are consistent with the proposal offered in this research. Second, we briefly review economic systems, the most important types and their characteristics and distinguishing features. Third, we present the elements of financial and economic stability in accordance with the researchers’ thesis. We present a fair amount of economic theory that explains the phenomenon of «economic equilibrium», the assumptions of which constitute factors of stability for economic systems. Fourth, we turn to actual economies, presenting the experience of two leading economic powers (USA and Japan) in trying to solve the mystery of crises. We explore the most important solutions adopted. More importantly, we have derived a solution that we believe is the most compatible with the Sharī‘ah. The first part of it is to impose an interest rate equal to zero. The second part of the proposed combination is the system of zakāh; the role of this element in the formulationa of financial and economic stability is highlighted.
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Pub Date : 2016-12-26DOI: 10.55188/ijifarabic.v7i2.284
N. Nahar
This paper addresses a contemporary jurisprudential issue: the legitimacy of an Islamic bank lending to the customer in exchange for him transferring his salary to it. The origin of the issue was that Qatar Islamic National Bank wanted to advertise that anyone who has his salary transferred to it would be loaned an amount three times that of his salary. The members of the Shariah committee were divided in their answer to this question, which caused me to write this research to derive an Islamic ruling on this matter. I started the paper with a jurisprudential characterization of this issue; then discussed the scholars’ rulings on loaning money on the condition of receiving a loan, and I showed the evidence of each position on the issue. Finally, the paper proposes an alternative free of doubts about its legitimacy as opposed to the basis of the product that Qatar National Islamic Bank wanted to promote. The study relies on an analytic and comparative methodology. The research arrived at the following conclusions: the scenario in question is comprised of three elements: the customer transferring his salary; the banking lending the customer money; and the stipulation that the loan is dependent upon the transfer. The juristic classification is that this is a loan made conditional upon receiving a loan, and the majority of scholars have prohibited it. The researcher found the opinion that it is prohibited to make the loan conditional upon the transfer of salary to be the correct one. He suggested two alternatives: the first is a sale at cost (tawliyah), and the second is free financing.
{"title":"Lending to the Customer in Exchange for a Transfer of Salary","authors":"N. Nahar","doi":"10.55188/ijifarabic.v7i2.284","DOIUrl":"https://doi.org/10.55188/ijifarabic.v7i2.284","url":null,"abstract":"This paper addresses a contemporary jurisprudential issue: the legitimacy of an Islamic bank lending to the customer in exchange for him transferring his salary to it. The origin of the issue was that Qatar Islamic National Bank wanted to advertise that anyone who has his salary transferred to it would be loaned an amount three times that of his salary. The members of the Shariah committee were divided in their answer to this question, which caused me to write this research to derive an Islamic ruling on this matter. I started the paper with a jurisprudential characterization of this issue; then discussed the scholars’ rulings on loaning money on the condition of receiving a loan, and I showed the evidence of each position on the issue. Finally, the paper proposes an alternative free of doubts about its legitimacy as opposed to the basis of the product that Qatar National Islamic Bank wanted to promote. The study relies on an analytic and comparative methodology. The research arrived at the following conclusions: the scenario in question is comprised of three elements: the customer transferring his salary; the banking lending the customer money; and the stipulation that the loan is dependent upon the transfer. The juristic classification is that this is a loan made conditional upon receiving a loan, and the majority of scholars have prohibited it. The researcher found the opinion that it is prohibited to make the loan conditional upon the transfer of salary to be the correct one. He suggested two alternatives: the first is a sale at cost (tawliyah), and the second is free financing.","PeriodicalId":322283,"journal":{"name":"مجلة إسرا الدولية للمالية الإسلامية","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125538419","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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