scholarly journals AKAD MURĀBAḤAH; KONSEP DAN PELAKSANAAN DI LEMBAGA KEUANGAN ISLAM MODERN

2020 ◽  
Vol 1 (1) ◽  
pp. 88-102
Author(s):  
Ahmad Maulidizen
Keyword(s):  
Financial Institutions ◽  
Islamic Banks ◽  
Purchase Price ◽  
Short Term ◽  
Significant Growth ◽  
Library Research ◽  
Islamic Financial Institutions ◽  
The Cost ◽  
Number Of Customers ◽  
Risk Dependency

ABSTRACTIslamic banking in Indonesia has experienced significant growth, including assets, financing providedand the number of customers. Murābaḥah is the sale and purchase of goods at the original price with theagreed-upon profit. In murābaḥah the seller must tell the cost of the product he buys and determine anadditional level of profit. This research is a library research about the murābaḥah contract according tomuamalah fiqh and its application in modern Islamic financial institutions. Methods of collecting data indocumentation and various sources related to the murābaḥah contract are then analyzed inductively anddeductively. The results of the study are the murābaḥah foundation is the principle of buying and sellingwith a deferred payment system. Murābaḥah, as used in Sharia banking, is based on two main elements,namely the purchase price and related costs, and the agreement on mark-up (profit). Islamic banks adoptmurābaḥah to provide short-term financing to customers for the purchase of goods even though thecustomer does not have the money to pay. The murābaḥah financing portfolio in Islamic banks reaches 70-80%, but in practice there have never been any problems, including; collateral which is a problem of fiqh,risk dependency as a problem of the bank, bankruptcy and delay in payment are the problems of customers,and profits are too high, namely the problem of coming from the community. Therefore, Islamic banks mustmake improvements in the implementation to be in accordance with Sharia.Keyword : Murābaḥah, Financing Instruments, Modern Islamic Financing

scholarly journals Islamic Banks Financing of FinTech Start-Ups in Oman: An Exploratory Study

2021 ◽  
pp. 55-65
Author(s):  
Abdelghani Echchabi ◽  
Mohammed Mispah Said Omar ◽  
Abdullah Mohammed Ayedh ◽  
Welcome Sibanda
Keyword(s):  
Financial Institutions ◽  
Islamic Banks ◽  
Short Term ◽  
Strategic Vision ◽  
Start Up ◽  
Islamic Financial Institutions ◽  
Start Ups ◽  
Depth Interviews ◽  
Infant Stage

This study mainly aims to explore the current practice and prospects of FinTech start-ups financing in Oman, particularly the IFIs (Islamic Financial Institutions) financing practices and the challenges faced by these start-ups in obtaining it. The study applies qualitative methods in procedures of in-depth interviews with eight Islamic banks’ managers in Oman. The findings revealed that the financing of the FinTech start-ups in Oman still in the infant stage and below its potential. This might be due to the general lack of interest in this area by the Omani start-up businesses. This situation might be due to the lack of clear strategic vision of Omani financial institutions, including both Islamic and conventional financial institutions with regards the Fintech start-ups. The findings also showed that the start-ups in Oman prefer long term financial schemes, while the Islamic financial institutions (IFIs) generally prefer to offer short term financing on Musharakah and Ijarah contracts. Lastly, the findings showed that the IFIs are positive regarding the prospects of growth and success of FinTech in Oman. It is noteworthy that this is one of the early studies that addresses the FinTech start-ups financing from an Islamic perspective, and hence places the ground for the future studies to be conducted in this area.

AKAD FINANCING OF MURABAHAH BETWEEN CUSTOMERS WITH MUAMALAT BANKS HARKAT VIEWED FROM SHARI'AH PRINCIPLES

2020 ◽  
Vol 10 (1) ◽  
pp. 13-26
Author(s):  
Candra Irawan ◽  
Adi Bastian ◽  
Febrozi Rohadi
Keyword(s):  
Data Collection ◽  
Financial Institutions ◽  
Research Method ◽  
Economic Condition ◽  
Field Research ◽  
Comprehensive Analysis ◽  
Islamic Banks ◽  
Legal Research ◽  
Trading System ◽  
Library Research

Currently in Indonesia Islamic Bank has gained a place and interested in the community, causing many emerging Syari'ah Bank and Financial Institutions of the syari'ah, and products in Islamic banks are widely used is murabahah financing. The formulation of the problem in this research are: (1). How is the implementation of the sale and purchase through murabahah financing between Bank Muamalat Harkat with customers. (2). Is trading system murabahah financing between Bank Muamalat Harkat and customers have been according to the principles of Syari’ah. (3). How murabahah financing efforts to resolve the breach between the customer and Muamalat Harkat. This research method is empirical legal research, this study was conducted in Bank Muamalat Harkat based data collection through field research such as interviews, observation and description as well as information from respondents through library research. The results of this research are: before an agreement Bank to assess carefully the prospective customer in the form of a comprehensive analysis and is divided into several stages, such as the assessment using the principle of 5C Character (Character of the debitor), Chapacity (Capability Candidate Debitor) , Capital (Capital candidate Debitor), Collateral (Collateral candidate Debitor) and Condition of economy (economic condition of the prospective Borrower). Trading system murabahah financing between Bank Muamalat Harkat with the customer has not fully based on the principles of the Syari'ah. Murabahah financing efforts to resolve the defaults can be solved by R3 is Restrukturing (Arrangement Back), Reconditioning (Terms Back) and Rescheduling (rescheduling), sales collateral and auction execution. 

scholarly journals Collecting Fees for Safekeeping of Collateral: Rules and Applications in the Contemporary Islamic Financial Institutions

2020 ◽  
Vol 9 (1) ◽  
pp. 50-53
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Market Price ◽  
Point Of View ◽  
Actual Cost ◽  
Islamic Banks ◽  
Maturity Date ◽  
Islamic Financial Institutions

The study aims to examine the Shari’ah legality of whether pledgor or pledgee should take care of collateral (marhun) during the period of the loan. Moreover, the study seeks to provide possible applications for the pledge (rahn) and clarify Shari’ah rules for each application. Malaysian Islamic banks apply pledge products by offering loans (qardh hasan) to the customers and requesting gold assets as collateral against a loan. The banks charge safekeeping fees to keep the gold until the maturity date of the loan. This practice combines loan and sale contracts in a single transaction. Accordingly, the study seeks to evaluate this practice from an Islamic point of view. Islamic law categorizes loans under charity contracts while the sale is categorized under contracts of exchange (mu’awadhat). The nature of the two contracts is different. Therefore, the study examines categories that combine loans and contracts of exchange in one transaction. The results reveal that it is not permissible for the pledgee to charge fees higher than market fees for the keeping of collateral. Charging fees that are higher than the market price is considered riba. According to Shari’ah rules, any kind of benefit derived from a loan is riba and thus it is prohibited. However, charging fees that are comparable to the market price and cover the actual cost for safekeeping of collateral is permissible. According to Islamic Fiqh Academy resolutions and AAOIFI standards, Islamic banks may charge fees for safekeeping of gold collateral considering that fees should be to the market fees and should only cover actual expenses.

Sharia Compliant in Private Zakat Institutions of Riau

2020 ◽  
pp. 429-442
Author(s):  
Devi Megawati
Keyword(s):  
Financial Institutions ◽  
Supervisory Board ◽  
The Body ◽  
Islamic Banks ◽  
Body Of Knowledge ◽  
Islamic Financial Institutions ◽  
Primary Reference

This study aims to understand the role of Sharia Supervisors in the private Zakat Institution (LAZ) as well as other aspects of sharia compliance, such as Zakat fatwa on the perspective of Zakat officers. According to Decree of the Minister of Religion Number 333 / 2015 that LAZ as register must have a sharia supervisor. Sharia compliance of an institution could rely on the role of the sharia supervisory board (SSB). Some literature discussing this topic is still dominated study on Islamic financial institutions (IFIs), especially in Islamic Banks. Therefore this article will contribute to the body of knowledge, especially in the zakat literature. Data were gathered from five presiding officers of private zakat institutions in one province in Indonesia which consists of three presiding officers from provincial LAZ representative and two presiding officers from LAZ district. The study found that Sharia compliance in LAZ had many weaknesses such as lack of sharia control by sharia supervisors, a member of the sharia supervisory board who does not follow the latest issues about Zakat or the absence of competency requirements to be a sharia supervisor at LAZ and also did not make Zakat fatwa issued by MUI as the primary reference by zakat officer. This information will be useful for stakeholders, including supervisory authorities and regulators.

scholarly journals Drivers of Ar-Rahnu (pawn) acceptance: Malaysian evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hassanudin Mohd Thas Thaker ◽  
Ahmad Khaliq ◽  
Mohamed Asmy Bin Mohd Thas Thaker ◽  
Anwar Bin Allah Pitchay ◽  
K. Chandra Sakaran
Keyword(s):  
Financial Institutions ◽  
Perceived Risk ◽  
Credit Card ◽  
Social Factor ◽  
Partial Least Square ◽  
The Body ◽  
Least Square ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Financial Institutions

Purpose The purpose of this paper is to examine the factor persuading the acceptance of Islamic pawn broking (Ar-Rahnu) among Islamic bank customers. Design/methodology/approach The authors collected the data using a self-administered questionnaire design and analysed using SPSS Statistics and smart partial least square. The study is restricted to only respondents who are based in the area of Klang Valley (Selangor and Kuala Lumpur), as these two areas have a larger number of Islamic banks and a decent number of Islamic banks’ clients. A total of 381 respondents’ responses are used for this study, and the constructs involved for analysis purpose are affect, social factor, facilitating conditions, perceived financial benefits and perceived risk constructs. Findings The finding suggests a significant positive association for social factor and perceived risk, while negative association learnt for affect on acceptance of Ar-Rahnu financing. On the same note, the facilitating condition and perceived financial benefit are found insignificantly related. Practical implications The findings generated from this study are expected to enrich the literature on the body of knowledge, as it has served to broaden the understanding of the Ar-Rahnu acceptance level in Malaysia. As mentioned, there is limited literature available using this type of financing. Existing studies focus too much on conventional financing products such as personal financing, credit card, short-term loan and many others. Less attention is given to Ar-Rahnu financing. Thus, this study expected to add value to the literature available in the context of Islamic pawn broking business. Moreover, the findings of this study will be very helpful for the Islamic financial institutions to find the best way to retain Ar-Rahnu clients and encourage more client to choose Ar-Rahnu as a mode of financing. Originality/value This study owns greater potential to assist Islamic financial institutions to discover the best techniques to retain and encourage the grander number of clients for Ar-Rahnu as a mode of financing.

Corporate governance and compliance with AAOIFI governance standards by Islamic banks

2020 ◽  
Vol 13 (5) ◽  
pp. 891-918
Author(s):  
Yosra Mnif ◽  
Marwa Tahari
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Audit Committee ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Disclosure Requirements ◽  
Financial Expertise ◽  
Islamic Financial Institutions ◽  
Research Stage

Purpose This study aims to examine the effect of the main corporate governance characteristics on compliance with accounting and auditing organisation for Islamic financial institutions’ (AAOIFI) governance standards’ (GSs) disclosure requirements by Islamic banks (IB) that adopt AAOIFIs’ standards in Bahrain, Qatar, Jordan, Oman, Syria, Sudan, Palestine and Yemen. Design/methodology/approach The sample consists of 486 bank-year observations from 2009 to 2017. Findings The findings reveal that compliance with AAOIFIs’ GSs’ disclosure requirements is positively influenced by the audit committee (AC) independence, AC’s accounting and financial expertise and industry expertise, auditor industry specialisation, IB’s size and IB’s listing status. On the other hand, it is negatively influenced by the ownership concentration. Research limitations/implications This study has only examined compliance with AAOIFI’s GSs’ disclosure requirements and has focussed on one major sector of the Islamic financial institutions (which is IB). Practical implications The findings are useful for various groups of preparers and users of IBs’ annual reports such as academics and researchers, accountants, management of IBs and some organisations. Originality/value While the study of the AAOIFIs’ standards has grown contemporary with considerable contributions from scholars, however, the majority of these studies are descriptive in nature. Indeed, the existing literature that has explored the determinants of compliance with AAOIFI’s standards is in the early research stage. To the best of the knowledge, there is a paucity of empirical research testing this issue.

scholarly journals The Regulation of Islamic Finance in the United Kingdom

2010 ◽  
Vol 13 (1) ◽  
pp. 69-77 ◽  
Author(s):  
Jonathan Ercanbrack
Keyword(s):  
United Kingdom ◽  
Financial Institutions ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Financial Industry ◽  
Religious Dimension ◽  
The United Kingdom ◽  
Islamic Financial Institutions

This article examines the unique risks associated with Islamic financial institutions and the secular state's reticence to directly regulate their religious dimension. It argues that the state's method of regulating the Islamic financial industry ignores special reputational risks associated with the religious and cultural distinctiveness of Islamic banks.

scholarly journals A SUCCINCT ANALYSIS OF MITIGATING LIQUIDITY RISK IN ISLAMIC BANKS IN THE LIGHT OF LIQUIDITY AND RISK MANAGEMENT PRINCIPLES

2019 ◽  
Vol 4 (1) ◽  
pp. 527
Author(s):  
Atharyanshah Puneri ◽  
Naeem Suleman Dhiraj ◽  
Hafiz Benraheem
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Institution ◽  
Real Life ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Islamic Financial Institutions ◽  
The Subject ◽  
Key Aspects

Liquidity management has been incessantly challenging for the financialinstitutions and especially Islamic financial institutions due to their nature of business. The�convoluted nature of liquidity management impedes the task of Islamic banks in managing�their liquidity efficiently. Given the intricacies of the subject matter, this paper delves into�elaborating the key aspects of liquidity management; subsequently, discusses the�consequences of poor liquidity management and problems inherent in managing the latter by�analyzing the real-life failure of Islamic financial institution as a result identifying the issues that could possibly jeopardize the existence of the Islamic banks. Finally, equipping the�readers with tools to mitigate the liquidity risk.

scholarly journals Analisis Tingkat Kesehatan Bank Syariah Menggunakan Rasio Permodalan, Profitabilitas, Pembiayaan, dan Risiko Kredit

2020 ◽  
Vol 6 (2) ◽  
pp. 367
Author(s):  
Slamet Santosa ◽  
Muhammad Tho'in ◽  
Sumadi Sumadi
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Financial Statements ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Short Term ◽  
Good Level ◽  
Quantitative Descriptive ◽  
Good Rating

The aims of the research is to find out the soundness level of Islamic banks seen from the capital ratio, profitability, financing, and credit. Islamic banking financial institutions which are to be the focus of this research are Bank Syariah Mandiri (BSM). This research uses quantitative descriptive methods. The data used are the 2014-2018 financial statements. The results of this study indicate that Bank Syariah Mandiri in terms of capital using the CAR ratio shows an average CAR ratio of 14.75%. This means that BSM in terms of capital is ranked very well. Bank Syariah Mandiri in terms of profitability using the ROA and ROE ratio shows an average ROA of 0.53% and ROE of 6%. This means that BSM's ability to generate profits is ranked quite well. Bank Syariah Mandiri in terms of financing using the FDR ratio shows an average FDR ratio of 79.81%. This means that BSM's ability to repay short-term loans and meet agreed financing is at a healthy rating. Bank Syariah Mandiri in terms of credit risk using the NPF ratio shows an average NPF ratio of 3.18%. This means that there is very little credit provided by BSM and the bank is viewed from the aspect of credit risk, including in a good rating. From the results of these research, indicate that the the soundness level of Bank Syariah Mandiri is in a good level of soundness.

scholarly journals Upaya Fintech Syariah Mendorong Akselerasi Pertumbuhan UMKM di Indonesia

2021 ◽  
Vol 7 (1) ◽  
pp. 41
Author(s):  
Saripudin Saripudin ◽  
Prameswara Samofa Nadya ◽  
Muhammad Iqbal
Keyword(s):  
Civil Society ◽  
Human Resources ◽  
Financial Institutions ◽  
Swot Analysis ◽  
Islamic Banks ◽  
Managerial Skills ◽  
Islamic Financial Institutions

Compared to other Islamic financial institutions, Islamic Fintech has some advantages in accelerating the growth of SME Enterprises in Indonesia. Nevertheless, the existence of Islamic Fintech is not free from various problems, such as regulation aspect, human resources aspect, also perception of society and potential fraud. This research sought to find solution of the problems with SWOT analysis, then comparing the aspects each other to find out strategies in the effort of growing Islamic fintech for accelerating SME Enterprises. The results are some strategies consisting of, first, ecosystem strengthening between Islamic Fintech, government, academics and civil society, including Islamic Fintech customers and Islamic Banks. Second, optimalization potential of Islamic Fintech in managerial skills also Islamic contracts capacity. Last, massive and targeted socialization and promotion of Islamic Fintech.

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