Copy
View this email in your browser
KMC News
INCEIF Continues to Contribute Towards Maldives' IF Capacity and Capacity Building
INCEIF Chancellor Tan Sri Dr. Zeti Akhtar Aziz Launches Books on Islamic Finance
New Database subscription: Bloomberg Professional
The Acceptability of Tawarruq as a Product for Financing within the
Islamic Banking System
E.F. Ahmad, M. Shihama, S.M. Jibril, S.I. Djama, A. Muneeza. 2017. International Journal of Management and Applied Research Vol. 4 (Iss. 1), pp. 31-43.
Assoc. Prof. Dr. Aishath Muneeza: "The purpose of this paper is to study the application of Tawarruq in the Malaysian Islamic banking system."
Key Messages
  • The outcome of this research revealed that there are contradictory views on the usage of Tawarruq.
  • While some jurists standby the view of its permissibility, others view it as an invalid product of Islamic banking.
  • It is necessary for Islamic financial institutions (IFIs) to understand that Tawarruq arrangement should be used in accordance with guiding principles of Shari'ah while the industry should continue to find a lasting solution for the liquidity management.
In conclusion, Islamic financial institutions should strive hard for better alternatives and adhere strictly to the Shari’ah guidelines and the resolutions by both the OIC Fiqh Academy and AAOIFI on the application of Tawarruq. Otherwise, IFIs will appear as practitioners of merely copying the conventional system, with their functions and operations essentially no different from the conventional space except in their use of Islamic terms to disguise riba and avoid other Shari’ah prohibitions.
Industry Highlights
AAOIFI issued a draft standard aiming to update guidance on Murabaha contracts, which intended to cover all deferred-sale contracts but opted to develop separate guidance on commodity-based Murabaha, also known as Tawarruq. Read more here: http://sco.lt/6pWQHR
KM Express
New Arrivals
Browse Collections
Latest IF Research
Browse Research
Activities
KMC Events: April 2017
 
"Getting Familiar with KMC Resources"
Tuesday, 4th April 2017
Time: 11.00 AM - 12.30 PM
Venue: Computer Lab 2
 
Want to learn more about KMC's wealth of resources? Join us for a workshop; where participants will be taken through a crash course of KMC's digital resources such as the KMC Portal, INCEIF Knowledge Repository (IKR) and KMC Discovery Platform.

Click here to register:
https://goo.gl/ubfOaa
Browse Events
Need Assistance?
Have you ever used our Inter-library Loan service? If a book you want isn't in our collections, we will assist you in sourcing the book from other libraries and institutes that will lend it to us for you to borrow. 
 
Do email us at kmc@inceif.org for further information.
Copyright © 2017 INCEIF, All rights reserved.
You are receiving this email because you are a valued member of INCEIF knowledge community. 






This email was sent to mhanif@inceif.org
why did I get this?    unsubscribe from this list    update subscription preferences
INCEIF · Lorong Universiti A · Jalan Universiti · Kuala Lumpur, KL 59100 · Malaysia

Email Marketing Powered by Mailchimp