The Quest for a Better Legal and Regulatory Framework for Islamic Banking

2014 ◽  
Vol 17 (1) ◽  
pp. 15-35 ◽  
Author(s):  
Abdul Karim Aldohni
Keyword(s):  
Business Model ◽  
Islamic Law ◽  
Regulatory Framework ◽  
Islamic Banking ◽  
Regulatory Aspects ◽  
Regulatory Authorities ◽  
Compatibility Analysis ◽  
Banking Business ◽  
Regulatory Complexity ◽  
Regulatory Challenge

The legal and regulatory aspects of Islamic banking present a challenge to most financial and regulatory authorities. To many observers, legal and regulatory complexity in this respect stems from the link between the banking business and Islamic law. Compliance with some Islamic rulings forces the sector to operate an unusual business model, which is different from that of their conventional counterparts. After expounding the ideological foundation of Islamic banking and the sector's evolution, this article examines the genesis of the legal and regulatory challenge by conducting a compatibility analysis between Islam and banking. It will be argued that the conceptions of Islam and banking ought not to conflict, which means that achieving regulatory equilibrium in relation to Islamic banking is possible.

PENERAPAN PRINSIP-PRINSIP HUKUM PERJANJIAN ISLAM DALAM PRODUK PERBANKAN SYARIAH (Telaah Atas Undang-Undang Nomor 21 Tahun 2008 Tentang Perbankan Syariah)

2019 ◽  
Vol 3 (2) ◽  
pp. 239-259
Author(s):  
Aristoni Aristoni
Keyword(s):  
Basic Principle ◽  
Islamic Law ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Legal Subject ◽  
For Profit ◽  
Alternative Product ◽  
Treaty Law ◽  
Banking Business

Prinsip dasar dalam hukum perjanjian Islam yakni, setiap muslim atau subyek hukum memiliki kebebasan dalam melakukan perbuatan hukum untuk mengadakan akad dan/atau perjanjian. Kebebasan sebagaimana dimaksud adalah bebas dalam menentukan objek perjanjian dan bebas menentukan dengan siapa akan membuat suatu perjanjian, dengan catatan sepanjang tidak bertentangan dengan ketentuan hukum Islam. Dalam praktik perbankan syariah pokok-pokok perjanjian dan/atau akad didasarkan pada prinsip syariah yang mana menawarkan suatu produk alternatif prinsip bagi hasil sebagai pengganti dari sistem bunga yang dipakai dalam perbankan konvensional. Secara garis besar produk-poduk perbankan syariah yang dikeluarkan didasarkan pada prinsip titipan, sewa menyewa, jual beli, bagi hasil dan jasa. Dan apabila prinsip-prinsip tersebut dijalankan dalam kegiatan usaha perbankan syariah berdasarkan syarat dan rukunnya, maka akan menghasilkan transaksi-transaksi yang bebas dari riba, transaksi yang bersifat untung-untungan dan tidak jelas, objek yang dilarang syariah dan ketidakadilan sebagaimana pula dikehendaki dalam Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah. Kata Kunci: Perjanjian, Hukum Islam, Prinsip Syariah, Perbankan Syariah. Abstract:The basic principle in Islamic treaty law is that every Muslim or legal subject has the freedom to carry out legal actions to enter into contracts and /or agreements. Freedom as referred to is free in determining the object of the agreement and free to determine who will make an agreement, provided that it does not conflict with the provisions of Islamic law. In sharia banking practices the principles of agreements and/or contracts are based on sharia principles which offer an alternative product for profit sharing principle as a substitute for the interest system used in conventional banking. Broadly speaking, Islamic banking products issued are based on the principle of deposit, leasing, buying and selling, profit sharing and services. And if these principles are implemented in sharia banking business activities based on the terms and conditions, they will result in transactions that are free from usury, profit and unclear transactions, objects that are prohibited from sharia and injustice as also desired in the Act Number 21 of 2008 concerning Sharia Banking.

scholarly journals Talent Development and Retention from the Bankers’ Perspectives: A Study at Islamic Banks in Malaysia

2018 ◽  
pp. 161-166
Keyword(s):  
Islamic Law ◽  
Talent Development ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Performing ◽  
Banking Business ◽  
Talent Retention ◽  
Banking Institutions ◽  
And Performance ◽  
Managerial Level

The credibility and performance of the Islamic banks depend on those who operate and manage the overall banking business. Due to high demand towards high performing talents for the industry lately, there is need to identify whether the industry has done their part to train and enhance their existing talents in order to ensure the Islamic banking business remain sustain in the future. This is more challenging when the demand for talents that have education background of combination of both Islamic jurisprudent (Shariah) and finance knowledge become pivotal.It is because of the nature of the Islamic banking business that need to ensure theoverall banking operations including product structure, accounting and auditing, credit evaluation, risk management, and others meet the Shariah requirement. This study therefore embarks to investigate relationship between talent development and talent retention and also to identify the effect of talent development towards talent retention at Islamic banking institutions. A total of 175 bankers from executive to managerial level of Islamic banks in Malaysia have involved in survey conducted in this research. The results show that the respondents agreed there is a relationship between talent development and retention. In addition, talent development do significantly affect talent retention positively. Therefore, as a suggestion from the bankers, there is need to have an appropriate talent development programme to ensure that the existing talents of the Islamic banks are competent both having strong knowledge in Islamic law as well as operating knowledge of the banking business.

scholarly journals Cybersecurity Awareness and Digital Skills on Readiness For Change in Digital Banking

2020 ◽  
Vol 5 (2) ◽  
pp. 53
Author(s):  
Mun Yah Zahiroh
Keyword(s):  
Structural Equation Modeling ◽  
Business Model ◽  
Structural Equation ◽  
Readiness For Change ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Technological Advances ◽  
Digital Skills ◽  
Banking Business ◽  
The Impact

This study will explore the impact of cybersecurity awareness and digital skills on Readiness for digital banking change. The study sample is fresh graduates in Indonesia's Islamic Banking. The study used PLS-SEM (Partial Least Squares-Structural Equation Modeling) using Smart-PLS 3.0 software. Research shows that 1) cybersecurity awareness does not impact digital banking readiness for Change. 2) digital skills have a positive and essential effect on digital banking readiness for Change. Though cybersecurity awareness does not affect Readiness for Change in digital banking, fresh Sharia Banking department graduates should have strong cybersecurity awareness and digital skills to face changes in the banking business model towards digitization due to significant technological advances acceleration during the Covid-19 pandemic. This study's implications are expected to facilitate the Islamic Banking department in Indonesia to develop its curriculum by including digital intelligence in the Merdeka Belajar curriculum.

Application of Statutes of Limitations to Islamic Banking: The Case of Malaysia

2020 ◽  
Vol 17 (1) ◽  
pp. 56-69
Author(s):  
Aishath Muneeza ◽  
Zakariya Mustapha
Keyword(s):  
Qualitative Research ◽  
Financial Institutions ◽  
Research Methodology ◽  
Islamic Law ◽  
Islamic Banking ◽  
Legal Action ◽  
Qualitative Research Methodology ◽  
The Right ◽  
Limitation Of Action ◽  
Insight Into

Limitations of action designate extent of time after an event, as set by statutes of limitations, within which legal action can be initiated by a party to a transaction. No event is actionable outside the designated time as same is rendered statute-barred. This study aims to provide an insight into application and significance of Limitations Act 1950 and Limitation Ordinance 1952 to Islamic banking matters in Malaysia as well as Shariah viewpoint on the issue of limitation of action. In conducting the study, a qualitative research methodology is employed where reported Islamic banking cases from 1983 to 2018 in Malaysia were reviewed and analysed to ascertain the application of those statutes of limitations to Islamic banking. Likewise, relevant provisions of the statutes as invoked in the cases were examined to determine possible legislative conflicts between the provisions and the rule of Islamic law in governing the right and limitation of action in Islamic banking cases under the law. The reviewed cases show the extent to which statutes of limitations were invoked in Malaysian courts in determining validity of Islamic banking matters. The limitation provisions so referred to are largely sections 6(1)(a) and 21(1) Limitations Act 1953 and section 19 Limitation Ordinance 1953, which do not conflict with Shariah viewpoint on the matter. This study will prove invaluable to financial institutions and their customers alike in promoting knowledge and creating awareness over actionable event in the course of their transactions.

Islamic Awakening and Its Role in Islamic Solidarity in Malaysia

2018 ◽  
Vol 29 (1) ◽  
pp. 98-125
Author(s):  
Saodah Abd. Rahman ◽  
Abu Sadat Nurallah
Keyword(s):  
Islamic Law ◽  
Evolutionary Process ◽  
Political Stability ◽  
Well Being ◽  
Islamic Education ◽  
Insurance Companies ◽  
Islamic Banking ◽  
Way Of Life ◽  
Youth Movement ◽  
Islamic Parties

The Islamic Awakening in Malaysia has brought about the consciousness of adopting and practicing the Islamic way of life. The process of implementing the principles of Islam is based on a gradual evolutionary process, rather than a drastic approach. Therefore, the selective implementation of Islamic law has been carried out relatively smoothly. For that reason, various institutions have been established ‒ such as, Islamic universities, Islamic banking and insurance companies, and other Islamic organizations and institutions. The case studies in this article related to Malaysia are: The Pan-Malaysian Islamic Party (PAS), Angkatan Belia Islam Malaysia – ABIM (Malaysian Islamic Youth Movement), and some Islamic institutions, which play important roles in the Islamic Awakening and solidarity in Malaysia. The PAS and ABIM are the prominent Islamic parties and movements, respectively, which can be regarded as the driving force behind the Islamic Awakening in Malaysia. Based on a tridimensional perspective ‒ that is, socioeconomic well-being and the strength of the expansion of Islamic education, and political stability ‒ this study highlights the accomplishment of Islamic Awakening in Malaysia.

scholarly journals Standard Quality Banking Services of Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 301
Author(s):  
Haneen A. Al-Khawaja ◽  
Barjoyai Bardai
Keyword(s):  
Islamic Law ◽  
Theoretical Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Confidence ◽  
Banking Services ◽  
Standard Quality ◽  
Definition Of

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

APPLICATION OF AKAD IJARAH ISLAMIC LAW IN THE AL-QUR'AN

ISLAMIKA ◽  
2020 ◽  
Vol 14 (1) ◽  
pp. 1-11
Author(s):  
Ade Jamarudin ◽  
Ofa Ch Pudin
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Financial Institution ◽  
Field Research ◽  
Secondary Data ◽  
Research Field ◽  
Islamic Banking ◽  
Library Research ◽  
Human Labor ◽  
Leasing Company

Ijarah is a contract on the transfer of goods or services with rewards instead. Ijarah based transactions with the displacement benefit (rights to), not transfer of ownership (property rights), there ijara financing translates as buying and selling services (wages hired), that take advantage of human power, there is also a translate lease, which take advantage of goods. Application ijarah growing financial institutions in the current Shari'ah is happening on the leasing company (financial institution based on Islamic teachings, as well as Islamic banking is one of the products in Islamic finance. Application ijarah emerging financial institutions shari'ah 'ah at the moment that is happening on the leasing company (financial institution based on Islamic teachings, as well as Islamic banking is one of the Islamic financing products). This research is a library research (library research) and field research (field research), and is descriptive, analytic and comparative. Data sources used in this study are sourced from primary and secondary data. Ijarah transactions are based on the transfer of benefits (use rights), not the transfer of ownership (ownership rights), some translate ijarah financing as the sale and purchase of services (wage wages), i.e., taking the benefits of human labor

scholarly journals نظرية المضاربة في الشريعة الاسلامية وتطبيقها في البنوك الاسلامية وتنمية الاقتصاد الإسلامي في إندونيسيا

2018 ◽  
Vol 6 (2) ◽  
pp. 124
Author(s):  
Abdurrohman Kasdi
Keyword(s):  
Islamic Law ◽  
Stock Exchange ◽  
Field Research ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Economic Literature ◽  
Economic Concept ◽  
Price Differentials

<p><em>This article aims at explaining the theory of mudharabah in Islamic Sharia and its application in Islamic banking and the development of the Islamic economy in Indonesia. This study is based on field research. The method of analysis of the data used is the analysis of the content on the messages received from mudharabah in Islamic law and its application in Islamic banks and the development of the Islamic economy. The result of this research is that mudharabah is one of the most important and oldest forms of investment of funds in the Islamic Sharia. The fuqaha have agreed on the legality of mudharabah, and the evidence of legality, from the al-Qur’an, Sunnah, Ijma’, and Qiyas. The mudharabah formula in Islamic banks came as a legitimate alternative to traditional financing operations. It is one of the most important forms of Islamic finance and is thought to have been the cause of Islamic banks, which are said to be the Islamic financing formula. In Islamic banks, mudharabah is divided into absolute mudharabah and restricted mudharabah. The economic concept of mudharabah in the economic literature goes to the stock exchange and its predictions of market fluctuations. The investor may have to pay the price differentials in the case of lower prices. </em></p>

scholarly journals Perbankan Syariah dan Pertumbuhan Ekonomi Indonesia: Bagaimana Kontribusinya?

Al-Muzara ah ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 129-140
Author(s):  
Emy Widyastuti ◽  
Yusvita Nena Arinta
Keyword(s):  
Economic Growth ◽  
Market Share ◽  
Secondary Data ◽  
Islamic Banking ◽  
Investment Financing ◽  
Banking Business ◽  
Negative Effect ◽  
Capital Financing ◽  
Variable Consumption

Islamic banking takes part in the Indonesian economic and financial system which contributes to the dynamics of eeconomic growth. The number of Islamic banks in Indonesia, through its market share, is still quite small, namely 5.95% in 2019 of the total national banking market share. One of the main activities of Islamic banking is channeling financing through financing based on the type of use and business category. This study aims to determine the short-term and long-term contribution of Islamic banking to Indonesia's economic growth using the Vector Error Correction Model (VECM) method. The data used in this study are quarterly secondary data of real Gross Domestic Product (GDP) and financing based on the use and category of Indonesian Islamic banking business types, which consist of working capital financing, investment financing and consumption financing. The results showed that in the short and long term, the variable consumption financing had a significant negative effect on Indonesia's economic growth.

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