Effectiveness of Shariah Committees in the Malaysian Islamic Financial Institutions: The Practical Perspective

2016 ◽  
Author(s):  
Zulkarnain Muhamad Sori ◽  
2016 ◽  
Vol 4 (2) ◽  
pp. 202-218
Author(s):  
ڕێبوار محمد احمد ◽  
◽  
هێمن محمد عزیز ◽  
بصيرة ماجيد نجم ◽  
◽  
...  

Author(s):  
Puji Kurniawan

Humans are social creatures who need each other to socialize or to fulfill their needs, such as primary, secondary and tertiary needs. In this life there are 2 (two) groups of people, namely groups of people who are overfunded and those who are underfunded. Therefore, banks and non-bank financial institutions have emerged as intermediaries between the 2 (two) groups of the people so that the balance can occur in meeting the needs of each life. In Indonesia, there are many conventional and sharia bank and non-bank financial institutions that provide financing services to meet human needs. The fundamental difference between conventional and Islamic financial institutions is the use of the interest system which is usury in conventional financial institutions and the use of profit sharing systems in Islamic financial institutions.


2020 ◽  
Vol 1 (1) ◽  
pp. 268-273
Author(s):  
Аль-Гаррави Мохаммед Абдулвахид Джайяс ◽  

WADIAH ◽  
2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Ryski Pebriana, Rofik Efendi

The development of Islamic banking and Islamic financial institutions in Indonesia lately increasing. One reason is the strong belief in the Muslim community that banking and conventional financial institutions contain usury which is prohibited by Islam. The presence of Agritama Srengat Blitar BMT as Syari'ah savings and loans is intended to be a more innovative alternative in financial services, the financing process is also not complicated. The absence of an element of usury to Murabahah financing, and the ease of the process and conditions for financing, does not make more and more bad loans. The approach used in this research is a qualitative descriptive approach, while the type of research is field research, and the method of collecting data is observation, interview and documentation, which is using three steps, data reduction, file presentation and drawing conclusions.The results of this study indicate that: 1). Financing procedures at BMT Agritama Srengat Blitar use 5C analysis (character, capacity, capital, collateral, condition) and take into account a maximum radius of 10 km, but this does not apply to existing customers and customers who get recommendations from partners. 2). The implementation of Murabahah financing management has not been in accordance with the murabaha management function which includes planning, organizing, implementing, and controlling. Where the planning of murabahah financing is devoted to agriculture and animal husbandry, but in practice it is not appropriate, then in the implementation of murabahah financing using a wakalah contract it is signed together with murabahah. And the supervision conducted by BMT Agritama is not routinely visited to the place of business. Keywords : financing manajement, murabahah


2021 ◽  
Vol 12 (2) ◽  
pp. 239-257
Author(s):  
Marziana Madah Marzuki ◽  
Abdul Rahim Abdul Rahman ◽  
Ainulashikin Marzuki ◽  
Nathasa Mazna Ramli ◽  
Wan Amalina Wan Abdullah

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.


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