Review of Islamic Law Against Execution of Collateral Auctions on Islamic Banking Institutions in Aceh, Indonesia

This article review Islamic law quoted from jurists’ opinion and legal experts on the use of auction trading theory in the collateral sale. Every financial transaction in Islamic banking required a guarantee. It is intended to save bank funds if the customer defaults. Based on constitutional act Number 4 of 1996 of mortgage rights, Islamic banks have the right to confiscate the asset (guarantees) of a customer who has reached the due date without intention to pay. However, the bank cannot carry out unilateral execution to make direct sales. The formal procedures which banks must follow to disburse funds from customer guarantees are usually long and often meet various obstacles. This article analyzes normatively and empirically the bail auction guarantees implementation on Islamic banking in Aceh based on the Islamic law concept from the al Quran, Hadith, and the scholars’ Ijma’. Although conventional law is still used in the auction rules, the implementation of guarantees as applied to Islamic banking has adopted many Islamic laws. However, in the practice, there are still many problems that arise from the Islamic law scope which uphold the philosophy of maslahah and the concept of justice. The paper, therefore, employs qualitative approach and secondary date to investigate Shariah perspective against execution of collateral auctions on Islamic banking institutions in Aceh, Indonesia.

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Analysis of Corporate Governance on Islamic Bank in Indonesia

AHKAM Jurnal Ilmu Syariah ◽

10.15408/ajis.v19i2.12645 ◽

2019 ◽

Vol 19 (2) ◽

Author(s):

Muhamad Nadratuzzaman Hosen ◽

Nasimul Falah ◽

Fitriyani Lathifah

Keyword(s):

Corporate Governance ◽

Islamic Law ◽

Qualitative Approach ◽

Islamic Banks ◽

Islamic Bank ◽

Positive Law ◽

The Right ◽

Islamic Values

This research demonstrates conceptual corporate governance (CG) which has relationship with regulations and Islamic teaching. Then, to investigate CG in Islamic Bank in Indonesia and to review law aspects and Islamic values related to rules of corporate CG in Islamic Bank in Indonesia. The study used qualitative approach using study literature and interview to analyze the implementation of corporate governance in Islamic bank in Indonesia. This study found that Islamic Banks which issued the rules of CG were not following philosophy of Islamic principles and not following strongly Islamic law and positive law. Hence, there were several fraud cases on Islamic banks inIndonesia. Islamic corporate governance in Indonesia still not find the implementation like in Malaysia. Rules of CG through regulation for Islamic bank is involving futher researher to examine the right policy. The regulation of corporate governance regulations for Islamic bank still need to be refined and turned into Islamic corporate governance standard in accordance with Islamic principles and national laws which required by Islamic bank.

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'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

Social and Management Research Journal ◽

10.24191/smrj.v18i2.14907 ◽

2021 ◽

Vol 18 (2) ◽

pp. 173-189

Author(s):

Sharifah Faigah Syed Alwi ◽

◽

Fateha Abd Halim ◽

Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin ◽

Aizurra Haidah Abdul Kadir ◽

...

Keyword(s):

Qualitative Methodology ◽

Islamic Law ◽

Human Life ◽

Islamic Banking ◽

Islamic Banks ◽

Structured Interviews ◽

The Public ◽

Library Research ◽

Banking Institutions ◽

Banking Operations

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.

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دور الشريعة الإسلامية في ترسيخ مبادئ الحوكمة: مدى إلزامية الوعد في المصارف الإسلامية نموذجاً (The Role of Shariah in Consolidating the Principles of Governance: The Study of the Extent of Mandatory Promise in Islam)

Journal of Islam in Asia (E-ISSN: 2289-8077) ◽

10.31436/jia.v16i2.819 ◽

2019 ◽

Vol 16 (2) ◽

pp. 137-165

Author(s):

ميسون قوادري ◽

عارف علي عارف ◽

حسن بن إبراهيم الهنداوي

Keyword(s):

Islamic Law ◽

Islamic Banking ◽

Islamic Banks ◽

Muslim Community ◽

Community Members ◽

Banking Institutions ◽

Descriptive Approach ◽

The Stability ◽

Financial Transactions

يشهد العصر الراهن نموا معتبرا في حجم المؤسسات المصرفية الإسلامية؛ ما ترتب عنه زيادة الحاجة للاهتمام بأساليب التنظيم الإدارية والشرعية في هذه المؤسسات؛ لتحقيق أهدافها التي أنشأت من أجلها وتلبية رغبات أفراد المجتمع المسلمين وغير المسلمين ممن يرغبون في التعامل معها؛ لذا يأتي هذا البحث لبيان ماهية الحوكمة الشرعية في المصارف الإسلامية وعلاقتها بنظام هذه المؤسسات والتركيز على مبدأ الوفاء بالوعد وبيان مدى إلزاميته وعلاقته بمبادئ الحوكمة وذلك لإبراز السبق العلمي والدور الأساسي للشريعة الإسلامية في ترسيخ قواعد الحوكمة في جانب من جوانبها وأنها كفيلة باستقرار المعاملات بصفة عامة والمعاملات المالية بصفة خاصة بما تحويه من مبادئ سامية، وسينتهج البحث المنهج التحليلي لتحليل أقوال الفقهاء حول مسألة الوعد الملزم، والمنهج الوصفي لبيان مبادئ الحوكمة، وعلاقتها بمبادئ الشريعة الإسلامية السمحاء. الكلمات المفتاحيّة: الوعد، حكم الوعد، الحوكمة، مقاصد الشريعة الإسلامية، المصارف الإسلامية. Abstract The present epoch is witnessing a significant growth in the Islamic banking institutions, which has led to an increase of need of methods of administrative and legal in these institutions in order to achieve the objectives for which they were established and to meet the desire of Muslim and non-Muslim community members who wish to deal with them. Therefore, this study aims to discuss the essence of Islamic governance in Islamic banks and their relationship to the system of these institutions as well as to focus on the principle of fulfilling the promise and to show the extent of its mandatory and its relationship to the principles of governance. Hence, the study highlights the basic role of Islamic law in consolidating the principles of governance. These kind of principles securing the stability of transactions generally and financial transactions particularly, which containing exalted principles. This study used the analytical approach to analyze the statements of jurists on the issues of binding promise, as well as descriptive approach to explain the principles of governance and its relation to the principles of Islamic law. Keywords: Promise, Governance, The goal of Islamic laws, Islamic banks.

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

The Journal of Social Sciences Research ◽

10.32861/jssr.spi6.161.166 ◽

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.

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Assessing Shariah Disclosure in Pakistan: The Case of Islamic Banks

Business & Economic Review ◽

10.22547/ber/12.2.1 ◽

2020 ◽

Vol 12 (2) ◽

pp. 1-18

Author(s):

Muhammad Ismail ◽

Shafiullah Jan ◽

Karim Ullah

Keyword(s):

Islamic Law ◽

Survey Design ◽

Special Kind ◽

Governance Structure ◽

Annual Reports ◽

Islamic Banking ◽

Islamic Banks ◽

Business Decisions ◽

Islamic Financial Institutions ◽

Banking Institutions

The foundation of Islamic banking and finance is based on the Islamic law of business transactions/ muamlat, which also confines to the moral and ethical codes of Islam. Also, the involvement of Shariah and Islamic ethics in the governance structure of Islamic banks gives rise to a special kind of disclosure issue called Shariah disclosure. The literature suggests, that stakeholders, including customers and shareholders, use Shariah disclose as core criteria to direct their transactions with Islamic Banking Institutions (IBIs). However, the available disclosure indices in the established literature are not insufficient for assessing Shariah disclosure of the IBIs. The present research study attempts to assess the level of Shariah disclosure of five full-fledged Islamic banks in Pakistan. For this purpose, the study developed Shariah Disclosure Index (ShDI). ShDI will be used as the basis upon the disclosure requirements of State Bank of Pakistan (SBP), Accounting and Auditing Organizations for Islamic Financial Institutions (AAOIFI), and Islamic business reporting literature. A survey design is used to collect the data for ShDI constructs by utilizing annual reports of the five full-fledged banks from the year of 2015 until 2017. The findings disclosed that the Shariah disclosure in Pakistani Islamic banks is satisfactory i.e., near 70% compared 30% Shariah disclosure of the foreign Islamic banks operating in Pakistan. It is appreciable that all the Islamic banks, particularly Pakistani Islamic banks, disclosing about 80%-90% of the SBP mandatory and AAOIFI recommended Shariah disclosure items. While, disclosure of the voluntary Shariah disclosure items are still very low i.e. 15%. It is also noted that the Shariah disclosure level was gradually improving which portrays in the increment of the average Shariah disclosure level in 2017 compared to2015. The research provides a benchmark and indicator for all stakeholders who are making their investment and business decisions In addition, the study is equally important for IBIs to comply with ShDI to ensure full Shariah disclosure in order to attract new investors, religiously excluded investors, and protect the ideological stance and religious commitments of the existing customers as well.

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

The Journal of Muamalat and Islamic Finance Research ◽

10.33102/jmifr.v17i1.260 ◽

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.

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Relationship Analysis of Islamic Banking between Malaysia and Pakistan

Journal of Management Info ◽

10.31580/jmi.v5i4.114 ◽

2018 ◽

Vol 5 (4) ◽

pp. 1-6

Author(s):

Khurram Faisal Jamal

Keyword(s):

Large Range ◽

Primary Objective ◽

Islamic Banking ◽

Islamic Banks ◽

Relationship Analysis ◽

Banking Institutions ◽

Qualitative Technique ◽

Performance Problem ◽

Very High ◽

Product Preference

Islamic banking is basically a system of financial intermediation, its primary objective is to avoid receipt and payment of interest. Islam does not only prohibit dealing with interest but also with liquor, pork, gambling, pornography and any other thing which are considered haram according to Shariah. The objectives of the research is to study and describe the Islamic financing techniques used by Islamic banking institutions in Malaysia and Pakistan. For this research seven variables Promotion, Product, Preference, Knowledge, Performance, Problem and Infrastructure was taken. Qualitative technique was used to answer the research objective. The findings of research indicate that lack of awareness of Islamic banking is very high in Pakistan as compared to Malaysia. A few promotions were used by Islamic banks in Pakistan while in Malaysia customers are knowledgeable about Islamic banking because banks promote them aggressively. There is a need of government and education sector support to promote Islamic banking in both countries. The study also found that Islamic banks in Malaysia have large range of products as compared to Pakistan. The practitioners from both countries are agreed at this point that BBA, Ijarah and Murabaha are more profitable and less risky than Musharaka and Mudaraba. The Islamic banking products are almost used for same purposes in both countries while some differences are also exists. Keywords: Islamic Finance, Comparative Study, Malaysia, Pakistan

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Standard Quality Banking Services of Islamic Banks

Journal of Public Administration and Governance ◽

10.5296/jpag.v8i1.12391 ◽

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.

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Design Analysis of CIMB Bank’s Website

Jurnal Teknologi ◽

10.11113/jt.v66.1840 ◽

2013 ◽

Vol 66 (1) ◽

Cited By ~ 1

Author(s):

Muhammad Ridhwan Ab. Aziz ◽

Mohammad Mahbub Alam Noorizzuddin Nooh

Keyword(s):

Design Analysis ◽

Islamic Banking ◽

Website Design ◽

Islamic Banks ◽

Future Researcher ◽

Market Shares ◽

The World ◽

Banking Institutions ◽

Banking Institution ◽

Conventional And Islamic Banks

Islamic banking has emerged in recent decades as one of the most important trends in the financial world, side by side with conventional banking. Website design has become a very powerful tool in disseminating information of a particular banking institution and this phenomenon has been fully utilized by both conventional and Islamic banks throughout the world. The purpose of this article is to analyze website design of CIMB Bank that offers both conventional and Islamic financing facilities. The methodology employed in this article is qualitative in nature through examining the websites of CIMB Bank. The finding shows that CIMB Bank needs to improve their both website designs in order to attract more customers to their websites and give true information with regard of their products and services. It is further suggested that future researcher tries to explore more in-depth website designs in terms of products and services provided by the conventional and Islamic banking institutions in order to increase their market shares.

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

Equilibrium Jurnal Ekonomi Syariah ◽

10.21043/equilibrium.v6i2.4664 ◽

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

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.

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