Academic literature on the topic 'Islamic kafalah'

Purpose The purpose of this paper is to explore the application of Kafalah in the practice of Islamic banking in Malaysia generally and ascertain applicable rules governing the application under relevant legislations and Shariah. The study also aims to examine the legislations in the light of Shariah provisions governing Kafalah and propose amendments. Design/methodology/approach This is a qualitative research where primary data sources mainly legislations and secondary sources comprising of articles and books on the subject of Kafalah were examined. It is an exploratory legal research that primarily focuses on library studies and adopts doctrinal approach for content analysis of data from the identified sources. Findings Kafalah is widely used in Islamic banking in Malaysia with primary or secondary application in structuring such products/services as personal guarantee, bank guarantee, Islamic credit card among others. The substantive law applicable to Kafalah in Islamic banking in Malaysia is the Contracts Act 1950 as decided cases indicate. However, provisions of the Act are at variance with rules of Shariah applicable to Kafalah on absolution of guaranteed debtor, multiple guarantors’ liability towards guaranteed sum as well as recourse and recovery from principal debtor. Research limitations/implications This research explored the practice of Kafalah in Islamic banking under Malaysian legal framework based on the available literature. The research does not embody an empirical evaluation. Originality/value This research suggests, with respect to the identified issues, an amendment to the Act for clarification as follows: that recourse and recovery from principal debtor is only where creditor has requested guarantor to settle outstanding debt, that presence of surety does not absolve principal debtor from his original liability and that multiple guarantors stand as having equal responsibility towards guaranteed amount. The research findings will assist policy and law makers to harmonize the relevant laws with the Shariah to facilitate sustainable development of Islamic banking.

Product of multi services in sharia banks presented in order to meet the needs of society as well as the development of the era transactions that course in accordance with Islamic principles, then the ownership in the syariah products including multi product in Islamic banking services using the concept of multi akad therein. This is done so that innovation in Islamic banking products had been developed so that it can be chosen by the public in conducting business transactions. Likewise, the multi-service bank guarantee products in Islamic banking, is a multi product contract, where there is more than one contract. Bank guarantees in Islamic banking is generally called kafalah product because this product is Kafalah main contract, followed by Ijarah contract, wadiah, and qardh. This paper examines the concept of multi-contract/contract executed hybrid shariah banking at bank product warranty/kafalah

This study aims to examines impact of peer monitoring on cost of kafalah financing. Based on mixed results on severals recents studies and the significance of this issue to islamic banking costing, it is important to recognize the condition under context to reduce cost kafalah financing. This study employes experimental method for confirming hypothesis. This study provides evidence that peer monitoring reduces cost of non-repayment in kafalah financing. This findings give implication for banks management when provides kafalah financing.

Islamic financing is regarded as one of the financing alternatives that enterprises may utilize to fund their business. This financing type is characterized as free from riba and is based on illiquid assets which create real assets and inventories. The aim of this conceptual paper is to highlight the Shari’ah contract of al Kafalah that is used by Credit Guarantee Corporation (CGC) to attach to its Islamic financing guarantee scheme offered to business enterprises. Kafalah refers to an obligation to pay in the event the principal debtor is unable to honour his obligation. Through this Shari’ah contract, the CGC has indeed paved a new way of financing enterprises which are keen on having halal financing to fund their business activities. Most importantly, this addition of halal financing has accelerated the growth of Islamic finance in Malaysia.

One of the parameters to assess whether a product meets sharia principles or not is to pay attention to the contracts and the various conditions used in the product. Products in Islamic finance activities, if against them are carried out by al-takyif al-fiqhi, some or even the majority of them contain several contracts. For example, in sharia credit card transactions there are ijarah, qardh and kafalah contracts, Islamic bonds contain at least mudharabah (or ijarah) and wakalah agreements, and sometimes with kafalah or wa'd, Islamic Swap contains several times the bargruq contract, bai ', wakalah, sharf and sometimes or always accompanied wa'ad. In every transaction, the contracts are carried out simultaneously or at least every contract contained in a product cannot be abandoned, because all of them are one entity. Such transactions are termed the multi contract (hybrid contract) which is now in the terminology of contemporary muamalat fiqh (fiqh al-mu'amalat al-maliyah al-mu'ashirah) called al-'uqud al-murakkabah.

This study explores how Islamic Finance Modes can provide alternative sources of financing business models in a circular economy. A comparative analysis of the Islamic Finance Modes such as Musharakah, (Equity Sharing), (Mudarabah), (Silent partnership), Forward sale (Salam), Manufacturing Financing (Istisna), Leasing (Ijarah), Sukuk (Investment Certificate), Qard Hassan (Beneficence Loans), Wakalah, (Agency contract) Kafalah (Suretyship Contract), and Ju’ala (Service Agency) were undertaken in relation to its suitability as a source of financing businesses in a circular economy. This study relies heavily on secondary data through literature reviews and research works of authors and researchers on Islamic Finance and Circular Economy. The study concludes that Ijarah, Sukuk, Qard Hassan, Istisna, Musharakah, Mudarabah, Wakalah, Kafalah, and Ju’ala financing modes are essential for providing alternative solutions to financing challenges confronting business models such as balance sheet extension, working capital, and increased credit risk in a circular economy. This paper recommends that Islamic Banks should review and redesign their products and services in order to cater for financing businesses in a circular economy and also support them by providing professional services in analyzing the creditworthiness of companies and viability of projects.

This study aims to determine the possibility of granting of guarantees and interest subsidies by central government in· order to accelerate the provision of drinking water, as stated in the Presidential Regulation 29 of 2009, based on Islamic principles.
 This research uses descriptive qualitative method. Collecting the data used in this study using the literature study. Data collected through the research literature related to the topic of study to obtain secondary data.
 It was concluded that the government guarantee as stipulated in the Presidential Regulation 29 of 2009 can be implemented based on Islamic financing and using the kafalah and the qardh contracts. The Kafalah contract put. the Government as guarantor (kafil).The Qardh contract implementation would be used in the event of payment of guarantee claims. The Qardh put the Government as provider of funds for payment to Islamic banking. Upon payment of warranty claims, the Government may request repayment to PDAM and local government. The interest subsidy in the Presidential Regulation 29 of 2009 can be converted into margin subsidy using the Hawalah contract, the Government accept the transfer of liability to the bank On the basis of the realization of partial payment obligations through subsidy mechanism, the Governement waived the right to claim to PDAM.
 Keywords: Government Guarantee, Interest Subsidy, Islamic Financing; The Fast Track Program Of Water Supply

The tendency of the community towards halal products is currently increasing, not only related to objects/goods but also related to muamalah/interactions. The development of the latest fintech applications needs to be examined and detailed again, to be linked with related sharia law. In addition to examining legal status, an interesting thing to develop is how to formulate a fintech application that is following the Islamic economic perspective. Therefore, it is crucial to always review the National Sharia Board – Indonesian Council of Ulama (Dewan Syariah Nasional – Majelis Ulama Indonesia – DSN-MUI)’s fatwa related to fintech applications in Islamic financial institutions (LKS). The results of this study will be used as input for DSN-MUI to formulate policies and fatwas that is issued. This research is a qualitative type. The research subjects are; (1) Sharia Cards, (2) Sharia Charge Cards, (3) Transfers and Collections, (4) Payment Services, and (5) Sharia Electronic Money. There are differences in the bases for determining the contract of each of these products between Islamic countries. The results of this study indicate that: (1) the sharia card product is more appropriate to use the hawalah contract than the kafalah contract, and it is necessary to fix fines due to maturity, monthly fees that are not related to the amount of debt, and to write off merchant fees; (2) Sharia Charge Card products should use a hawalah contract rather than a kafalah contract and need to eliminate fines due to late payment; (3) the use of the wakalah contract on transfer and collection products is correct; (4) payment service products that use a wakalah and ijarah contract should be sufficient to use one of the two; and (5) electronic money can function as money, with transactions using the hawalah principle, as well as debit cards (wadi'ah principles). So, four improvements are proposed to the DSN-MUI fatwas related to the fintech application.========================================================================================================Tinjauan Terhadap Fatwa Terkait Penerapan Fintech pada Lembaga Keuangan Syariah di Indonesia. Kecenderungan masyarakat terhadap produk-produk halal saat ini semakin meningkat, tidak hanya terkait dengan benda/barang namun juga terkait muamalah/interaksi. Perkembangan aplikasi fintech terbaru perlu dicermati dan didetailkan lagi, untuk dikaitkan dengan hukum syariat terkait. Selain pencermatan status hukum, hal yang menarik untuk dikembangkan adalah bagaimana merumuskan aplikasi fintech yang sesuai dengan pandangan ekonomi Islam. Oleh karena itu sangat perlu untuk selalu meninjau fatwa DSN-MUI terkait aplikasi fintech pada lembaga keuangan syariah (LKS). Hasil kajian ini akan menjadi masukan bagi DSN-MUI untuk merumuskan kebijakan-kebijakan dan fatwa-fatwa yang dikeluarkannya. Penelitian ini berjenis kualitatif. Subjek penelitiannya adalah: (1) Syariah Card, (2) Syariah Charge Card, (3) Transfer dan Inkaso, (4) Jasa Pembayaran, dan (5) Uang Elektronik Syariah. Terdapat perbedaan dasar-dasar penentuan akad dari setiap produk tersebut di antara negeri-negeri Islam. Hasil penelitian ini menunjukkan bahwa: (1) produk syariah card lebih tepat menggunakan akad hawalah dibandingkan dengan akad kafalah, serta perlu membenahi denda akibat jatuh tempo, monthly fee yang tidak dikaitkan dengan jumlah utang, dan menghapus merchant fee; (2) produk Syariah Charge Card sebaiknya menggunakan akad hawalah dibandingkan dengan akad kafalah serta perlu menghilangkan denda akibat keterlambatan pelunasan; (3) penggunaan akad wakalah pada produk transfer dan inkaso sudah tepat; (4) produk jasa pembayaran yang menggunakan akad wakalah dan ijarah seharusnya cukup menggunakan salah satu dari keduanya; dan (5) uang elektronik dapat berfungsi sebagaimana uang, dengan transaksi menggunakan prinsip hawalah, sebagaimana kartu debit (prinsip wadi’ah). Jadi, diusulkan empat perbaikan atas fatwa–fatwa DSN-MUI terkait aplikasi fintech.

Islamic Kafalah is a guardianship system that enables a child to be brought up within a family environment without inheritance rights and ‘assimilation’ as the legal child of the new parents. This study analyses Kafalah within the context of alternative care for children deprived of their environment. Compares Kafalah to other forms of alternative case and examines the extent to which Kafalah is recognized and practiced internationally.<br>Dissertation submitted to the Faculty of Law University of Pretoria, in partial fulfilment of the requirements for the degree Masters of Law (LLM in Human Rights and Democratisation in Africa). Prepared under the supervision of Prof Julia Sloth-Nielsen, University of the Wstern Cape, South Africa.<br>Mini Dissertation (LLM (Human Rights and Democratisation in Africa))--University of Pretoria, 2009.<br>http://www.chr.up.ac.za/<br>Centre for Human Rights<br>LLM

Ce travail a pour objet d’étudier la confrontation entre deux systèmes juridiques distincts en matière de mariage et de ses effets. Il s’agit de la réception du droit marocain de la famille qui est d’essence religieux par l’ordre juridique français à travers son droit international privé, un ordre juridique laïque. La première partie de cet ouvrage est consacrée à la compréhension du mariage marocain et de ses effets qui est indispensable pour la réception d’institutions étrangères par l’ordre juridique français. Pour y parvenir, il faut saisir l’évolution de l’institution matrimoniale depuis la création du premier Code de la famille marocain, jusqu'à la réforme de ce dernier en 2004. Elle met en évidence l’assimilation par le législateur marocain du mariage et de ses effets dans un Code de la famille moderne tout en gardant son essence religieuse. Cette approche indispensable conduit à comprendre la portée de la réforme du mariage marocain de 2004 et la difficulté que connait son application. Comprendre ses limites permet de saisir la conception de la notion de famille dans le Maroc d’aujourd’hui. La deuxième partie est consacrée à la réception de cette notion à travers le mariage marocain et ses effets par le droit international privé français. L’étude de l’application des règles de droit international privé montre la difficulté qu’a la loi marocaine à s’appliquer sur le territoire français malgré l’existence de la convention franco-marocaine du 10 aout 1981. Le droit marocain se trouve, malgré sa compétence, soit devant une qualification difficile de ses institutions inconnues de l’ordre juridique français et dans ce cas, il est dénaturé. Soit il est face à l’intervention du mécanisme de l’exception de l’ordre public puisque ses institutions et ses règles sont considérés comme choquant les principes fondamentaux du for et par conséquent, il est écarté. En analysant la méthodologie du droit international privé français, un certain relativisme découle dans l’application de ses modalités ce qui envoie à s’interroger sur les limites du respect des valeurs fondamentales du for. Un relativisme qui se débat entre poursuivre le but du droit international privé d’harmoniser deux systèmes<br>This work is to study the confrontation between two distinct legal systems relating to marriage and its effects. It is the receipt of the Moroccan family law which is of religious essence by the legal order french through its international law private, a legal secular. The first part of this book is devoted to understanding Moroccan marriage and its effects which is indispensable for the reception of foreign institutions by the french legal order. Achieve this, to understand the evolution of the marital institution since the creation of the first Code of the Moroccan family, until the reform of the latter in 2004. Ithighlights the assimilation by the Moroccan legislator of the marriage and its effects in a modern family Code while keeping its religious essence. This indispensable approach leads to understand the scope of the reform of the Moroccan wedding of 2004 and the difficulty that knows its application.Understanding its limits allows to capture the design of the concept of family in the Morocco of today.The second part is devoted to this concept through the Moroccan wedding reception and its effects byfrench private international law. The study of the application of the rules of private international law shows the difficulty that Moroccan law applicable on french territory despite the existence of the Franco-Moroccan agreement of 10 August 1981. Moroccan law is, despite its jurisdiction, either before a difficult qualification of its unknown institutions of the french legal system and in this case, it is denatured. It is against the intervention of the mechanism of the public order exception as its institutions and its rules are considered offensive the fundamental principles of the Forum and consequently, he was waived. By analyzing the methodology of french private international law, a certain relativism arises in the application of its provisions that shipments to wonder about the limits of respect for the fundamental values of the Forum. A relativism that struggles between pursuing the goal of private international law to harmonize two different systems