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Faisal, Yusuf, and Yvonne Agustine Sudibyo. "Performance Reviewed from Maqasyid Shariah, Culture of Islamic Organizations and Sharia Compliance." International Journal of Multicultural and Multireligious Understanding 7, no. 10 (November 6, 2020): 458. http://dx.doi.org/10.18415/ijmmu.v7i10.2158.
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This examine objectives to decide the effect of Islamic maqasyid, Islamic organizational tradition and Sharia Compliance at the overall performance of sharia bank personnel. The pattern of this examine is 203 personnel of Islamic banks spread across three nation banks, specifically unbiased Islamic banks, Indonesian people's Islamic banks, Indonesian nation Islamic banks and Islamic muamalat banks which are the primary Islamic banks in Indonesia. The consequences of this examine indicate that the Islamic maqasyid has a poor and sizable impact at the overall performance of personnel, even as the Islamic organizational tradition and Sharia Compliance have a fine and sizable impact at the overall performance of personnel of Islamic banks.
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Alam, Md Mahmudul, Salwana Hassan, and Jamaliah Said. "Performance of Islamic microcredit in perspective of Maqasid Al-Shariah." Humanomics 31, no. 4 (November 9, 2015): 374–84. http://dx.doi.org/10.1108/h-12-2014-0072.
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Purpose – This study aims to examine the role of Islamic microcredit programs based on the achievement of Maqasid Al-Shariah. Past studies have evaluated the role of microcredit programs using the conventional assessment approach. However, the conventional system of socioeconomic role assessment cannot evaluate the performance of Islamic microcredit in terms of achieving the objectives of Shariah for the Islamic microcredit model. Design/methodology/approach – This paper uses primary data that were collected through a questionnaire survey distributed among 393 microcredit borrowers from Amanah Ikhtiar Malaysia (AIM). The survey was conducted from July 2013 to December 2013 in the State of Sabah and in Peninsular Malaysia. This research also analyzes the socioeconomic roles and the achievement of microcredit and microenterprise from the perspective of the five principles of Al-daruriyyat from Maqasid Al-Shariah. Findings – Results indicate that the microcredit program of AIM has a positive and enhancing effect on the livelihood of clients. This effect is reflected in the assessment of their well-being, especially in the context of Maqasid Al-Shariah. Originality/value – This study examines the role of Islamic microcredit based on the achievement of Maqasid Al-Shariah.
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Eficandra, Eficandra. "Maqasid al-shariah: suatu kajian terhadap ijtihad Ali ibn Abi Thalib." Ijtihad : Jurnal Wacana Hukum Islam dan Kemanusiaan 12, no. 1 (June 30, 2012): 21. http://dx.doi.org/10.18326/ijtihad.v12i1.21-41.
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Ijtihad conducted by Ali ibn Abi Talib continuously to understand in depth the purpose of Islamic law and reason for its implementation, and to realize maslahah (the public good) for human life on earth. This Ijtihad was always supported by nas the Qur’an’s and Sunnah’s text) and also according to the spirit of Shari’ah. The results of Ali’s ijtihad if linked with the approach and application of maqasid al-shari’ah (the goals and objectives of Islamic law) as the study of usul al-fikih (the methodology of Islamic law) had many similarities. In another sense, Ali ibn Abi Talib was really smart to understand and apply maqasid al-shari’ah in the five types of maslahah, namely faith or religion, life or human self, intellect, lineage or posterity, and property or wealth. Likewise, in the application of the five maslahah, levels and priorities in the form daruriyyat (the essential benefits), hajiyyat (the complementary benefits), and tahsiniyyat (the embellishment benefits) was always be considered by him. On the other hand, if there was a clash between one maslahah with another maslahah, Ali ibn Abi Talib solved it by consideration of the level and priority in the implementation of mas}lah}ah to be realized.
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Sa’diyah, Mahmudatus, Asep Gugun Gumilar, and Edi Susilo. "Uji Maqashid Syariah Perbankan Syariah Di Indonesia." Jurnal Ilmiah Ekonomi Islam 7, no. 1 (February 16, 2021): 373. http://dx.doi.org/10.29040/jiei.v7i1.1725.
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The purpose of this study is to examine the performance of Islamic banking in Indonesia based on MSI (Maqashid Shariah Index). Combining the maqashid sharia Ibn Ashur and Abu Zaharah with the methodological concept developed by Sekaran (Mohammed et al., 2015). The three objectives of Maqashid Sharia: (1) Tahdhib al-Fard (Educating individuals); (2) Iqamah al-ʻAdl (establishing justice); and (3) Jalb al-Maslahah (Public Interest). Simple Additive Weighting (SAW) is used as a method for ranking the performance of Islamic banking based on the final results from MSI. The results showed 14 Islamic Commercial Banks (BUS) in 2011-2019, had an average IMS 0.1694. The IMS of five Islamic banks is below the average, namely BMS, Maybank, BTPNS, BAS, and BNTBS. IMS first rank is BPS index 0.2336, second rank is BVS index 0.2168, third rank is BSB index 0.2164, fourth rank is BCAS with index 0.2129, fifth rank is BMI with 0.183 index, sixth rank is BSM with an index of 0.1895, the seventh rank is BRIS with an index of 0.1904, the eighth is BNIS with an index of 0.1814, the ninth is BJBS 0.1759, the tenth is BMS 0.153, the eleventh is Maybank index 0.1289, the twelfth is BTPNS 0.1237 the thirteenth is BAS 0.0930, and the last fourteen is BNTBS with an index of 0.1289
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Islamy, Athoillah. "FATWA ABOUT SOCIAL INTERACTION ON SOCIAL MEDIA IN THE PARADIGM OF ISLAMIC LEGAL PHILOSOPHY." Al-Mishbah: Jurnal Ilmu Dakwah dan Komunikasi 15, no. 2 (February 6, 2020): 163. http://dx.doi.org/10.24239/al-mishbah.vol15.iss2.159.
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This study aims to find the paradigm of Islamic legal philosophy contained in the Fatwa of the Indonesian Ulema Council (MUI) regarding guidelines for social interaction through social media. This type of research is qualitative research (library research). Data sources of this study is the Fatwa of MUI, No.24 of 2017 Concerning Law and Guidelines for Bermuamalah through Social Media and various relevant literature. The theory used in this research is the Maqasid Shariah theory. This study concludes that the Fatwa of MUI legal provisions that limit freedom of social interaction through social media are legal provisions in realizing the benefit of individuals (al-maslahat al-khassah) and the public (al-maslahat al-ammah) in the context of social life. To realize these two benefits, the five objectives of Islamic law (maqasid shari'ah al-khomsah), such as hifz al-nafs, hifz al-aql, hifz al-mal, hifz al-nasl can be manifested in various legal provisions of the fatwa of MUI which limits freedom of social interaction on social media.
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Julia, Taslima, and Salina Kassim. "Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework." Journal of Islamic Marketing 11, no. 3 (June 27, 2019): 729–44. http://dx.doi.org/10.1108/jima-10-2017-0105.
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Purpose Environmental degradation has been identified as one of the major impediments for development in Bangladesh. The World Health Organization has ranked Bangladesh fourth among the most polluted countries in the world. Faced with this challenge, the Government of Bangladesh introduced the Green Financing Policy and encouraged banks to participate in offering green financing as part of the efforts to promote environment-friendly economic activities for sustainable economic development. This study aims to examine the financial performance of selected commercial banks that offered green financing in Bangladesh in the period from 2012 to 2014. Design/methodology/approach In achieving this objective, the paper has divided the various sections of green banking policy under Maqasid Shariah framework of Imam Al-Ghazali, which is preserving faith, life, intellect, posterity and wealth. After that, green performance is compared between five conventional banks and five Islamic banks, according to the secondary data gathered from the annual reports and sustainability reports, as well as verified based on interviews. Finally, based on quantitative and qualitative thematic analysis approach, it is identified which banks meet most of the Shariah objectives along with performing sustainably. Findings The study finds that none of the banks fully meet the green/sustainable policy requirements; however, the Islamic banks are ahead in preserving faith, intellect and wealth circulation. Research limitations/implications This research is mostly based on secondary data; banks’ non-disclosure of green data was an impediment to run in-depth and fair comparisons. However, to check the reliability and validity of secondary data, two heads of sustainable banking department from conventional bank and two from Islamic bank have been interviewed. Practical implications Based on the findings, several recommendations are made on ways to expedite green financing, which can ultimately enhance contribution of Islamic banks toward the sustainable economic growth of the country while fulfilling Maqasid Shariah. Social implications Because the green banking policy aim is very much in line with Maqasid Shariah which is the aim of Islamic banks, Islamic banks can presumably contribute more to the sustainable economic growth of the country by aligning their entire operations with green policies. Originality/value To the best of the authors’ knowledge, this study is perhaps the earliest initiative to compare Islamic and conventional banks’ green performances in Bangladesh.
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Ringim, Kabiru Jinjiri, and Ibrahim Mohd Yussof. "Assessing The Insight Of Muslim Account Holders’ In Conventional Bank To Purchase Islamic Bank Products." Journal of Emerging Economies and Islamic Research 2, no. 3 (September 30, 2014): 57. http://dx.doi.org/10.24191/jeeir.v2i3.9633.
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This study investigates the insight of Muslim account holders’ in conventional bank to purchase Islamic bank products. The concept Insight was defined in terms of Perception, Awareness and Understanding. Hence, the objectives of this study is to assess the effect of Perception, Awareness and Understanding of Muslim’s account holder’s in conventional bank to purchase Islamic bank products. Perception is operationally defined as the opinion, observation, assessment or experience while, Awareness is viewed as the consciousness, recognition or familiarity. Understanding is referred as the comprehension, grasp or appreciation of Muslim’s account holder. A research framework model and hypotheses concerning the relationships among the variables – Perception, Awareness, and Understanding of Muslim’s Account holder’s in conventional bank to purchase Islamic bank products were posited and tested. Data was collected using hand delivery questionnaire survey approach. Using simple random sampling procedure, three hundred and eighty five (385) respondents both male and female were selected to participate in this study. Factor analysis, Pearson correlation, multiple regression methods of data analysis were utilized for hypotheses testing. The results of the correlation revealed that Perception, Awareness and Understanding are positively associated with Muslim account holders in conventional banks toward Islamic banking products. The multiple regression results indicate that Understanding and Awareness factors jointly explained 27.1% of the variance of Muslim account holder’s in conventional bank toward patronising Islamic bank products. The outcome of this study provides vital information on the effect of Awareness and Understanding of Muslim account holder’s in conventional bank to purchase Islamic banking products. The managerial implication of this study is for the Islamic banking industry to focus on the people’s understanding of Shariah position on business transactions, concept of profit and loss sharing practice, benefit of Islamic banking products, good understanding of Islamic banking theory and practice that would have impact on customer decision.
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Rusydiana, Aam Slamet, Hendri Tanjung, and Lina Marlina. "MASLAHAH BASED MEASUREMENT ON INDONESIA ISLAMIC BANKS." International Journal of Islamic Business Ethics 3, no. 1 (March 5, 2018): 365. http://dx.doi.org/10.30659/ijibe.3.1.365-382.
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Every single effort or process taken by Islamic bank to maximize output should also uphold Islamic values, so that maqashid sharia (maslahah-sharia objectives) would be authomatically achieved. There were some research conducted to measure Islamic bank performance using maqashid sharia framework. However, these studies were not explicitly addressing the issue of cost-saving strategies within the framework of efficiency measurement. It is therefore this paper aims to� have� efficiency� and� maslahah� measurement� in� one assessment framework� that� is� maslahah-eficiency� quadrant� (MEQ). There are three aspects measurement of maslahah, namely education, justice, and welfare as maqashid sharia index (MSI). Hence, in order to measure efficiency level of Islamic Banking Industry especially Sharia Business Unit, this study use Data Envelopment Analysis (DEA) method and employ Banxia Frontier Analyst 3.1 for data analysis. Within the MEQ framework, the study revealed that Permata, CIMB, BTN, DKI, Jambi, and Kalbar are excellent since both are within the first quadrant.Whereas Maybank, NISP, Sinarmas, Sumbar, and Sulselbar are considered good at the second quadrant; Danamon, Jatim, Sumut, Riau&Kepri, Kalsel, and Kaltim are fair at the third; and DIY, Jateng, and NTB are poor at the fourth sequentially. It is urge for Islamic bank that are in low level of MSI to have a critical policy to keep in line with the five factor of maqashid sharia apart of having efficiency in order to reach maslahah. keywords: Maslahah-Efficiency Quadrant (MEQ), Maqashid Sharia index (MSI), DEA, Islamic Bank
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Elewa, Ahmed. "Maqasid al-Shari`ah." American Journal of Islam and Society 28, no. 4 (July 13, 2020): 117–24. http://dx.doi.org/10.35632/ajis.v28i4.1226.
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Along with Islamic finance and jurisprudence for Muslim minorities,Maqaṣid al-Shariʻah (the higher objectives of Islamic Law)completes the trinity of cutting-edge traditional Islamic research.Its importance emanates from its philosophical vision, which allowsfor the practice of divine text and prophetic teachings in a mannerthat acknowledges and responds to contemporary challenges.Recognizing that this vibrant topic is complex, intellectually challenging,and that most books on the subject are written for specialists, theInternational Institute of Islamic Thought published three introductoryguides to provide simple and accessible material for the general reader. The Recognizing that this vibrant topic is complex, intellectually challenging,and that most books on the subject are written for specialists, theInternational Institute of Islamic Thought published three introductoryguides to provide simple and accessible material for the general reader.The series includes the three books above that are the subject of this review.While significantly varying in focus, all three books succeed in providingintroductory-level texts. Muhammed Chapra presents one long argumentthat human well-being and development is realized by enrichingthe human self, faith, wealth, intellect, and posterity. Before moving onin detail to examine the conditions necessary for the enrichment of faith,wealth, intellect, and posterity, and how the Sharʻiah allows people to preservethem all, he cites fourteen different human needs that must be takeninto account in order to enrich and invigorate the human self. Instead, MohammadKamali and Jasser Auda begin with the genealogy of Maqaṣid.After explaining its textual origins, multiple classifications, and the historyof its development, Kamali addresses Maqaṣid theory ‒ following itsexpansion beyond the traditional five objectives (the focus of Chapra’sbook) and describes the main methodological challenges that have facedthe field. Auda departs from Kamali by focusing on the relevance andpromise of Maqaṣid for contemporary Islamic jurisprudence and thought ...
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Zainudin, Nur Hazirah, and Wan Mohd Zulhafiz Wan Zahari. "Whistleblowing: A Western and Shari’ah Perspective." IIUM Law Journal 26, no. 1 (June 30, 2018): 99. http://dx.doi.org/10.31436/iiumlj.v26i1.362.
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The concept of whistleblowing law in Islam is unique and differs from the West as it derives from the elements of Tawhid and Shari’ah. The concept is essentially dynamic and relevant since it was initially introduced during the Islamic ruling era until the present time. The practice of whistleblowing in Islam maintains the public interest (maslahah ‘ammah) which aims in fulfilling the five objectives of Maqasid Shari’ah. On the other hand, the western whistleblowing law was developed in response to tragedies in assuring good governance and protecting the public interest, in which the ideas of good and bad are determined by social norms and not based on the scriptures. In the present time, notably, the role of whistleblower is significant to response to corruption as a global issue plaguing many nations, which causes substantial destruction to social, economic and political aspect. In this regard, the purpose of this paper is to explore and compare the concept and scope of disclosure of whistleblowing law from Shari’ah perspective and its western counterpart and how its principled conviction, upholding public interest disclosure could deal with the current phenomenon plaguing many nations, corruption. With that, the methodology employed in this paper reflected the descriptive, analytic, and prescriptive approaches by analyzing the existing laws, decided cases and literature pertaining to the conceptual and the legal frameworks of whistleblowing under the Western and Islamic jurisprudences.
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Abdul Rasool, Mohamed Saladin, Siti Nurul Akma Ahmad, and Siti Mariam Ali. "Enhancing Household Well-being through Zakat Assistance." International Journal of Zakat 5, no. 2 (September 30, 2020): 23–36. http://dx.doi.org/10.37706/ijaz.v5i2.213.
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The main purpose of Islam is to ensure and promote the wellbeing of all humanity and to avoid harm. From an Islamic perspective, wellbeing is explained through inside and outer fulfillment, driving towards a peaceful life, named as Hayat-e-Tayyaba. The objectives and vision of wellbeing are to satisfy the material and non-material needs. The Maqasid al-Shari’ah principles are normally used by scholars to explain wellbeing from the Islamic perspective. The objective of this empirical paper is to determine the wellbeing status of zakat recipient in Selangor using one of the dimensions of Maqasid al-Shari’ah that is wealth. Specifically, the potential ability of zakat to enhance the wellbeing of poor households is discussed. The present study employed a dataset derived from a survey consisting of 258 heads of households of poor zakat recipients in the state of Selangor, the most populated state in Malaysia. The cross-section study employed the proportionate random sampling method across nine districts in Selangor. The paper presents the wellbeing of households proxied by selected variables representing the five dimensions of Maqasid al-Shari’ah using descriptive statistics, T-test and Pearson correlation. In brief, the role of zakat to promote a better life from a micro perspective is highlighted.
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Adenan, Faezy, and Asmak Ab Rahman. "Menjaga Keamanan Negara Menurut Perspektif Maqāsid Syariah Serta Hubungannya Dengan Matlamat Pembangunan Lestari [Sustainable Development Goals]: Kajian Di Malaysia (National Peace Preservation According to the Maqāsid Syariah Perspective and its Relations to the Sustainable Development Goals [Sustainable Development Studies]: A Study In Malaysia)." UMRAN - International Journal of Islamic and Civilizational Studies 7, no. 1 (February 27, 2020): 33–47. http://dx.doi.org/10.11113/umran2020.7n1.375.
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Peace is an invaluable asset to ensure the prosperity and harmony of a nation. With the existence of peace, the people in a nation can carry out their respective responsibilities and roles perfectly, which consequently further enhance the nation prosperity. There are numbers of Western orientalists suggested that Islam is a religion that advocates violence. While in actuality, Islam uphold the preservation of peace and security at the utmost importance. This calls for a comprehensive argument to properly present the adherence of Islam towards maintaining harmony and prosperity. Therefore, the objective of this study is to highlight the existence of peace preservation in the Islamic concept of Maqāsid Syariah and draw the similarity on the definition of peace in Maqāsid Syariah with UN Guidelines for Sustainable Development Goals (Sustainable Development Goals). The research adopted library research methodology to accentuate the concept of peace preservation in the five elements of Maqāsid Syariah by using textual and contextual analysis on available literature pertaining the subject matter. The results show that the peace preservation of the nation is an integral piece in the concept of Maqāsid Syariah. National peace preservation is the key to maintain the five elements of Maqāsid Syariah which are religion, intellect, self, heritage and wealth. In addition, Maqāsid Syariah delineates peace keeping at the highest priority in maslaḥah requirement. Furthermore, Maqāsid Syariah demonstrates a compelling correlation in its definition of peace with the characteristic sustainable development goals (SDCs) outlined by the United Nations (UN). The importance of this study is to give a general guidance on preservation and maintenance of national peace according to the shariah objectives, which have a strong relationship among them.
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M. Bizri, Rima. "A study of Islamic banks in the non-GCC MENA region: evidence from Lebanon." International Journal of Bank Marketing 32, no. 2 (April 1, 2014): 130–49. http://dx.doi.org/10.1108/ijbm-04-2013-0035.
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Purpose – This purpose of this paper is to investigate the status of Islamic banking in Lebanon, through addressing the perceptions of existing and potential clients. The study has two objectives: one is to identify and measure the factors that clients perceive as important in deciding to patronize an Islamic bank, and the other is to draw a client profile for Islamic banks operating in Lebanon. Design/methodology/approach – The literature review provided the theoretical framework this study builds on. A survey instrument was developed and the data were analyzed using SPSS (19.0). To draw the client profile, the researcher conducted cluster analysis followed by discriminant analysis. To identify and measure the Islamic bank selection criteria, the researcher used factor analysis followed by regression analysis. Findings – Findings show that clients consider five variables in deciding whether or not to patronize Islamic banks. These variables are trust in Islamic banks and their true compliance with Sharia, customers’ familiarity with Islamic modes of finance, cost of financing and other transactions, accessibility of Islamic banks, and the quality of service offered by those banks. The study was also able to delineate the significant attributes of IB clients, raising the issue of changing the target market segment. Research limitations/implications – This study employed a usable sample size of 199 questionnaires collected from one MENA region nation, Lebanon. It may be useful to probe the research questions of this study using a larger sample size collected from several MENA region nations, in order to reach a more validated conclusion. In addition, it may be equally useful to assess other demographic and psychographic variables as distinguishing factors among client clusters, for the purpose of reaching a deeper understanding of Islamic bank clientele in this region. Practical implications – It is suggested that Islamic banks consider the five factors identified in this study, while preparing their marketing strategy, for the purpose of increasing their market share in the non-GCC MENA region. It is also suggested that Islamic banks approach the so far neglected market segments, rather than sticking to their traditional clients. Originality/value – This paper is the first to investigate the status of Islamic banks in Lebanon. The findings of this study will help refocus the marketing strategies of Islamic banks in Lebanon. They may also apply to other developing non-GCC countries in the MENA region.
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Rahman, Mushtaqur. "Editorial." American Journal of Islam and Society 5, no. 1 (September 1, 1988): v—vi. http://dx.doi.org/10.35632/ajis.v5i1.2873.
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Five years of the American Journal of Islamic Social Sciences (AJISS)seem trivial, but there has been a good reason to seize upon this occasionas a brief respite from the here-and-now to look back at our objectives andaccomplishments. It is gratifying that AJISS is now a lading journal of Islamicresearch published in United States, and a major international journal. Ithas published medium and longer length articles by scholars within and outsidethe United States, representing original, significant, and major Islamicconceptual and interpretative advances within all subfields of the socialsciences. The articles have reflected the breadth, depth, and scale of modernIslamic scholarship, regardless of their perspectives and orientations.Among of the objectives of AJISS, and its sponsors, namely theInternational Institute of Islamic Thought (IIIT) and the Association of MuslimSocial Scientists (AMSS), has been the effort to restore confidence amongthe Muslim scholars and revive Islamic scholarship to its former high standards.In addition there has been a modest effort to bring the ummah out of itspresent decadent situation and historic Nostalgic bonds. Ordinarily, such asituation develops when a nation starts living in memories and monuments,memorizes history and narrates it while ignoring or relegating the realitiesof the time. The other perspective of history, and perhaps more desirable,is when the people learn from history, interpret history and transform thepresent knowledge according to their history, values, and ethics. During thepast five years, AJISS has persistently attempted to lead the way in fashioninga proper historical perspective by reverting to the basics, and by Islamizingthe current knowledge.This issue begins with selections from the Holy Qur'an and commentaryby 'AbdulHamid A. AbuSulayman. Three major sections follow. Section oneincludes two papers on the need and philosophy of Islamization of knowledge.In the first paper, Fazlur Rahman, presents his perspective on the Islamizationof Knowledge and suggests modification of the present approach. The secondpaper by Ilyas By-Yunus gives a brief biography of Isma'il al Faruqi, andtraces the development of his ideas of Islamization as one of the effectivemeans for Muslim resurgence.The second section of this issue has three papers on matters concerningIslamic Thought. In the first, Louay Safi discusses war and peace in Islam,challenging the classical doctrines as issue-specific and incomprehensive.Arguing his case with credible support from other sources, Safi offers analternative approach based on Islamic principles. The other paper by AbdulazizSachedena elaborates the importance of the Shari'ah by upholding the Tawhidprinciples in assimilating diverse groups with varied interests into one Ummah ...
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ALI, MUHAMMAD AQIB, and TALAT HUSSAIN. "Islamic Banking Products, Services and Objectives: Perspectives of Shariah Supervisors and Regulators." International Review of Management and Business Research 10, no. 1 (March 8, 2021): 247–58. http://dx.doi.org/10.30543/10-1(2021)-21.
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The study is aimed at assessing the opinions of vital Islamic banking stakeholders including members of various Islamic banking Shariah Supervisory Boards (SSBs) and pertinent personnel from Pakistan’s central bank – The State Bank of Pakistan (SBP). The research analyzes the percepts of respondents regarding various aspects relevant to Islamic banking (IB) products, service and objectives. The paper employs qualitative research approach in analyzing the Shariah and regulatory experts’ viewpoints regarding Islamic banking. The study is conducted using semi-structured interviews of twelve Shariah supervisors and nine SBP staff members serving in the Islamic banking department and Islamic banking focus groups in the regional/field offices of the State Bank of Pakistan. The study is of pioneering nature involving qualitative research design and inclusion of two of the most significant stakeholder groups from the Islamic banking sector of Pakistan who have not been included in the past studies regarding Islamic banking perceptions. The research findings highlighted that Shariah objectives are top priority of Islamic banks as per the views expressed by members of Shariah boards of various banks while in opinion of Islamic banking regulators, Islamic banks’ major concern is to achieve their business objectives. Keywords: Islamic Banking, Islamic Finance, Pakistan, Products, Perceptions, Shariah Compliance.
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Shehu, Farida Mohammed, and Al-Hasan Al-Aidaros . "Islamic Entrepreneurship in the Light of Maqasid Al-Shari’ah: A Critical Review." Journal of Social and Development Sciences 6, no. 4 (December 30, 2015): 6–14. http://dx.doi.org/10.22610/jsds.v6i4.854.
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The objectives of entrepreneurship in Islam are guided by the Maqasid Al-Shariah. However, there is a mismatch between Islamic entrepreneurship objectives and Maqasid Al-Shariah based on available literatures, which have not been critically investigated. This paper presents a critical review of the literature within the Islamic entrepreneurship objectives and Maqasid Al-Shariah framework. The exploratory study adopting content analysis to achieve its aim found that the existing literature covered both the Din and Mu’amalah based objectives of Islamic entrepreneurship. However, there is dearth of literature that integrates the connection between objectives of Islamic entrepreneurship and Maqasid Al-Shari’ah. It is therefore suggested that researchers should conduct more researches to examine the integration of Maqasid Al-Shariah in Islamic entrepreneurship, particularly in respect to decision making in handling entrepreneurship issues.
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Hilmy, Ahmad Arif Masdar. "DISPARITAS USIA MINIMAL PERKAWINAN DALAM KOMPILASI HUKUM ISLAM PERSPEKTIF TEORI BATAS MAṢLAḤAH SA’ĪD RAMAḌĀN AL-BŪṬI." JURNAL ISLAM NUSANTARA 3, no. 1 (June 25, 2019): 123. http://dx.doi.org/10.33852/jurnalin.v3i1.123.
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This research is a document research that discussed and analyzed about the disparity in the minimum age limit of marriage in Article 15 of the Indonesian Islamic Law by using the theory of maṣlaḥah Sa'īd Ramaḍn al-Būṭi. This research became urgent in order to increase khazanah of science which is progressive and also opened insight into the opportunities for new thoughts, regarding the absence of rules in the disparity of minimum age limits of marriage for men and women in Islamic law. The data of this study were collected through the documentation method. After that, the reading was done on the text (text reading) and then the texts were analyzed. The result showed that the disparity in the minimum age limit of marriage in Article 15 KHI was based on consideration of the benefit of the family and household. The conclusion of the author's brief research was that the substance contained in Article 15 of the KHI concerning about the disparity in the minimum age limit of marriage for men and women included the benefits of parenting (mental, spiritual, financial and physical), social balance, and responsibility of marriage. The disparity in the minimum age limit of marriage in Article 15 of the KHI was a benefit if it was reviewed by using the theory maṣlaḥah from Sa'īd Ramaḍān al-Būṭi, because it had fulfilled five conditions, which were maslaḥah must be within the scope of the Shari'ah objectives, does not contradict to The Qur'an, does not contradict with the Sunnah, does not contradict with Qiyas, and does not contradict with the more urgent maṣlaḥah.
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Syed Alwi, Sharifah Faigah, Fateha Abd Halim, Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin, Aizurra Haidah Abdul Kadir, and Aula Ahmad Hafidh Saiful Fikri. "'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION." Social and Management Research Journal 18, no. 2 (September 1, 2021): 173–89. http://dx.doi.org/10.24191/smrj.v18i2.14907.
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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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Ismail, Muhammad, Shafiullah Jan, and Karim Ullah. "Assessing Shariah Disclosure in Pakistan: The Case of Islamic Banks." Business & Economic Review 12, no. 2 (June 10, 2020): 1–18. http://dx.doi.org/10.22547/ber/12.2.1.
Full textAbstract:
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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Khalid, Azam Abdelhakeem, Hasnah Haron, and Tajul Ariffin Masron. "Competency and effectiveness of internal Shariah audit in Islamic financial institutions." Journal of Islamic Accounting and Business Research 9, no. 2 (March 5, 2018): 201–21. http://dx.doi.org/10.1108/jiabr-01-2016-0009.
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Purpose The purpose of this paper is to propose the conceptual relationship between competency and effectiveness of internal Shariah auditors in Islamic financial institutions (IFIs). Design/methodology/approach Normative and theorizing based on the main sources of Islam, mainly Maqasid al-Shariah theory, has been utilized in this research. Findings This study demonstrated how Maqasid al-Shariah or higher objectives of Islamic law have gradually captured the attention of increasing numbers of modern Muslim scholars for solving contemporary issues. Originality/value This study uniquely captured Maqasid al-Shariah for the competency of internal Shariah auditor.
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Abd Rahman, Nurulhuda, Nor’azam Mastuki, Nawal Kasim, and Muhamad Rahimi Osman. "Risk Based Internal Shariah Audit Practices in the Islamic Bank." Journal of Social Sciences Research, SPI 1 (March 15, 2019): 87–94. http://dx.doi.org/10.32861/jssr.spi1.87.94.
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Shariah audit is an essential key function to ensure Shariah compliance in Islamic banking institutions. Shariah audit complements existing functions of conventional internal audit, which is lacking in providing adequate assurance on Shariah compliance. Hence, there is a need to incorporate Shariah audit function to existing corporate governance framework of Islamic banks (IB). However, there is not much guidance that auditors could refer to in order to perform comprehensive Shariah audit procedure. The current study intends to provide in-depth explanation on the process of internal Shariah audit, particularly on the planning, execution and reporting, also follow up phases. If focuses on the application of risk-based internal audit (RBIA) approach in the practices. The study adopts a qualitative approach of single case study in an attempt to achieve its objectives. By providing detailed explanation on practices of internal Shariah audit in Islamic banks, findings are expected to contribute in supplying valuable in-depth information for Islamic banks, as well as other Islamic institutions. This information is especially important for in strategizing internal Shariah audit practices as an important control and monitoring strategy in their business operation.
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Abd Rahman, Nurulhuda, Nor’azam Mastuki, Nawal Kasim, and Muhamad Rahimi Osman. "Risk Based Internal Shariah Audit Practices in the Islamic Bank." Journal of Social Sciences Research, Special Issue 5 (December 15, 2018): 954–61. http://dx.doi.org/10.32861/jssr.spi5.954.961.
Full textAbstract:
Shariah audit is an essential key function to ensure Shariah compliance in Islamic banking institutions. Shariah audit complements existing functions of conventional internal audit, which is lacking in providing adequate assurance on Shariah compliance. Hence, there is a need to incorporate Shariah audit function to existing corporate governance framework of Islamic banks (IB). However, there is not much guidance that auditors could refer to in order to perform comprehensive Shariah audit procedure. The current study intends to provide in-depth explanation on the process of internal Shariah audit, particularly on the planning, execution and reporting, also follow up phases. If focuses on the application of risk-based internal audit (RBIA) approach in the practices. The study adopts a qualitative approach of single case study in an attempt to achieve its objectives. By providing detailed explanation on practices of internal Shariah audit in Islamic banks, findings are expected to contribute in supplying valuable in-depth information for Islamic banks, as well as other Islamic institutions. This information is especially important for in strategizing internal Shariah audit practices as an important control and monitoring strategy in their business operation.
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Alam, Md Kausar, Fakir Tajul Islam, and Mahfuza Kamal Runy. "Why does Shariah governance framework important for Islamic banks?" Asian Journal of Economics and Banking 5, no. 2 (June 4, 2021): 158–72. http://dx.doi.org/10.1108/ajeb-02-2021-0018.
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Purpose The purpose of this paper is to explore the question “Why is Shariah Governance Framework (SGF) important for Islamic banks?” Design/methodology/approach A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study has collected data from the concerned bodies related to Shariah Governance (SG) from the central bank and Islamic banks of Bangladesh. Findings This study states SG as a process of confirming Shariah compliance in the overall functions of the Islamic banks, while Shariah denotes some rules, regulations, guidelines, objectives and directions to enhance accurate functions and activities, which are solely based on Shariah principles. SGF is important for Islamic banks to implement Shariah principles, confirm Shariah compliance and monitor the functions of the banks. Besides, it is needed for a well, efficient, effective, profitable business and higher performance and, finally, to eliminate the confusion among the management, executives, conventional bankers and banks. Research limitations/implications This study significantly contributes to the national and global regulatory bodies by providing evidence that why do Islamic banks and financial institutions require a sound SGF. It is recommended that there should be a sound and robust SGF to protect and fulfill the interest, expectations and demands of different stakeholders, which can easily draw their attention, intention and interest. Originality/value This is the first research that extends the literature of Islamic banking and SG by highlighting the importance of SGF. This study claims that to be a complete Islamic bank as well as protecting the unique identity from the general banks and corporate governance system, SG manual is required.
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Zakiah, Farah, and Al-Hasan Al-Aidaros. "Customers’ Islamic ethical behavior: the case of Malaysian Islamic banks." Humanomics 33, no. 3 (August 14, 2017): 371–83. http://dx.doi.org/10.1108/h-03-2017-0046.
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Purpose The purpose of this paper is to determine the framework of customers’ Islamic ethical behavior in Islamic banks in Malaysia. Design/methodology/approach This paper used a quantitative approach based on Maqasid Shariah (objectives of Islamic law) and by running exploratory factor analysis. A survey questionnaire was created. The data of 530 respondents were collected from the customers of Islamic banks located in Malaysia. Findings The findings revealed that the theoretical framework consists of four main constructs: Islamic ethical behavior, religious obligation, reputation and profit and investment, in which all constructs are complying with Maqasid Shariah and three (i.e. Islamic ethical behavior, religious obligation and reputation) consist of two components for each construct. Research limitations/implications There are two limitations that require further acknowledgements. First, the study population only focused on Islamic banks’ customers. Second, this research highlighted only Malaysia and Malaysian citizens. Originality/value The paper contributes to the literature on Islamic ethical behavior in Southeast Asian economy. Unlike other Islamic ethical studies where the writing is mainly theoretical in nature, this study used an empirical method to reveal what should constitute for the framework of customers’ Islamic ethical behavior which is based on Maqasid Shariah.
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Anwer, Zaheer. "Islamic venture capital investment style – opportunities and challenges." Journal of Islamic Marketing 10, no. 3 (September 9, 2019): 848–59. http://dx.doi.org/10.1108/jima-02-2018-0046.
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Purpose This study aims to explore how Islamic venture capital (IVC) structure can be established by introducing modifications in traditional venture capital (VC) structure. The motivation stems from the criticism on the existing Islamic finance products, that are said to be Shariah-compliant in form but do not fulfil objectives of Shariah whereas IVC is portrayed by existing literature as an ideal risk sharing based product. Design/methodology/approach This study uses a questionnaire method to understand IVC philosophy, structure and operational approach and asked the respondents to identify how IVC differs in respect of these traits from conventional VC. The authors collected 50 questionnaires from IVC practitioners, regulators, academicians and Islamic finance (IF) consultants in three countries, namely, Malaysia, Pakistan and Turkey. Findings IVC can be incorporated by introducing some modifications in traditional VC structure. They need to appoint a full-time Shariah scholar, to ensure compliance to Shariah principles. IVCs should refrain from dealing in impermissible business activities. They can choose any prevailing method for valuation and investment mode, provided it follows principles of Shariah. IVCs are exposed to unique risks such as Shariah non-compliance risk and equity investment risk and they need additional measures to safeguard against these risks. They can adopt any exit strategy, provided funds are procured from halal sources. Finally, IVC is found to hold the potential to achieve the desired objectives of IF. Originality/value This study fills the gap in the existing literature related to IVC investments as no study, to the best of the author’s knowledge, has evaluated the dynamics of IVC by using responses from industry, academia and regulators.
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Abdullah, Khaled Mohamad, and Ahmad Wifaq Mokhtar. "Islamic Financial Intermediation in Kuwait Finance House Malaysia: A Fiqh Maqasid Study." Ulum Islamiyyah 12 (September 15, 2014): 176–204. http://dx.doi.org/10.33102/uij.vol12no.223.
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This article aims to study the financial intermediation in Islamic banks, in term of the degree of extent and achievement according to Islamic rules and Maqasid of Shariah. The objectives of this study has been done theoretically and practically through the study of some applications on the light of Maqasid. This study shows that the financial intermediation achieving the Magasid of Shariah without contradiction if it is applied correctly. Practically, this study was applied on the Kuwait Finance House Malaysia. Results show that Islamic intermediation implementing the Maqasid of Shariah in some aspects, however the study also highlights that the practice of some types of fictitious contracts like Tawaruq, Mudarabah with Tawaruq, lease and sublease, seem to contradict the Islamic rules of the Shariah and its Maqasid. This study recommends the avoidance of fictitious contracts, and to replace them with direct investment according to the comprehensive Islamic banking model of the Islamic banking system.
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Irsyad, M. "Penerapan Model Almuqassah Sebagai Model Alternatif Kartu Kredit Syariah Di Indonesia." SERAMBI: Jurnal Ekonomi Manajemen dan Bisnis Islam 2, no. 3 (September 26, 2020): 153–68. http://dx.doi.org/10.36407/serambi.v2i3.200.
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This study aims to find out whether the Islamic credit cards is shariah compliant, and to find out what if al-muqassah is applied in Indonesia as an alternative model of Islamic credit cards. This study uses qualitative research methods with descriptive analysis. The object of research in this study is the Islamic credit cards model that already exists in Indonesia and the al-muqassah model. The sample in this study uses purposive sampling, namely officials from the Islamic credit card division at BNI Syariah Jakarta and DSN MUI Officials. Data Obtained from this study through interviews with relevant institutions and documentation. The results obtained from the study indicate that based on that the current Islamic Credit cards products are shariah compliant. Where the benefits provided by Islamic credit cards are in line with shariah objectives, namely maqasid dharuriyyah and maqasid hajjiyyah. However, based on the issue of shariah in the application of existing Islamic credit cards, development is still needed to improve the quality of products, especially from shariah aspects. As for the application of the al–muqassah model in Indonesia, it is very possible as long as it is supported by all parties.
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Kamaruddin, Muhammad Iqmal Hisham, Mustafa Mohd Hanefah, Zurina Shafii, Supiah Salleh, and Nurazalia Zakaria. "Comparative Analysis on Shariah Governance in Malaysia: SGF 2010, IFSA 2013 and SGPD 2019." Journal of Public Administration and Governance 10, no. 1 (February 11, 2020): 110. http://dx.doi.org/10.5296/jpag.v10i1.16157.
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The main focus of shariah governance for an organization is to ensure that it is comply with shariah laws and regulations. Under Islamic finance industry, shariah governance is being given attention due to rapid growth of this industry in the world. For Malaysia, the authority through Bank Negara Malaysia (BNM) have taken a proactive role by introducing shariah governance guidelines including the Shariah Governance Framework (SGF) 2010, the Islamic Financial Services Act (IFSA) 2013 and the latest is the Shariah Governance Policy Document (SGPD) 2019. These shariah governance guidelines are supposed to support the development of shariah governance practices especially by Islamic Financial Institutions (IFIs) in Malaysia. However, there is limited to none study conducted to compare these guidelines. These shariah governance guidelines is necessary to be compared in order to find out whether these guidelines are complemented each other and to identify any differences among these guidelines. Therefore, the aim of this study is to compare between these shariah governance guidelines. Based on the analysis, it has been found that SGPD 2019 is the most comprehensive covers on shariah governance as compared to IFSA 2013 and SGF 2010. However, these three guidelines still not become comprehensive enough, as there is still limited to none discussion on the definition and objectives of shariah governance itself.
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Zakariyah, Luqman, and Mohammed Kabiru Musah. "Examining the Legality of Rahn Contracts in Malaysian Islamic Financial Institutions (Meneliti Kesahihahn Akad Rahnu di Institutusi Kewangan Islam)." Journal of Islam in Asia (E-ISSN: 2289-8077) 15, no. 2 (December 24, 2018): 363–88. http://dx.doi.org/10.31436/jia.v15i2.755.
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This study aims to investigate the legality of rahn contracts in Malaysian Islamic Financial Institutions. Specifically, it attempts to examine how rahn is used in these institutions as well as the Shariah issues related to it so as to ascertain the extent to which it has achieved the objectives for which it was legislated by the Shariah. To achieve these objectives, inductive method is used to gather information on rahn both from classical and modern books of Islamic Jurisprudence. Qualitative approach with interview as the instrument of data collection was also adopted to elicit data from the following Malaysian Islamic Financial Institutions: Bank Rajhi, Maybank, Bank Muamalat and Bank Islam. This research concludes that the rahn used in these Islamic financial institutions has achieved the objectives for which it was legislated. It is also used through several combinations of contracts such as wadiah yad dhamanah (savings with a protection guarantee), ujrah (fee), qard hasan (loan) among others. However, some transactions in which the rahn appears need to be reviewed, and amended to comply with the provisions of Islamic Shariah.
Keywords: Islamic Mortgage, Rahn, Islamic Contract, Islamic Home Financing, Islamic Financial Institutions.
Abstrak
Kajian ini bertujuan meneliti kesahihan Akad al-Rahnu di Institusi Kewangan Islam di Malaysia. Secara khususnya, kajian ini cuba meneliti aplikasi al-Rahnu di institusi-institusi kewangan Islam Malaysia serta isu-isu Shariah yang berkaitan dengannya, demi memastikan akad tersebut mecapai objektif yang digariskan oleh Shariah. Demi mencapai objektif tersebut, metod induktif telah digunakan untuk mengumpul maklumat daripada buku-buku Fiqh klasik dan kontemporari. Pendekatan kualitatif dengan wawancara sebagai instrumen pengumpulan data juga diguna pakai untuk mendapatkan data dari Institusi Kewangan Islam Malaysia berikut: Bank Rajhi, Maybank, Bank Muamalat dan Bank Islam. Kajian ini menyimpulkan bahawa akad rahnu yang digunakan dalam institusi kewangan Islam ini telah mencapai objektif sebagaimana ditetapkan oleh Shariah. Ia juga digunakan melalui beberapa kombinasi kontrak seperti wadiah yad dhamanah (simpanan dengan jaminan perlindungan), ujrah (fee), qard hasan (pinjaman) dan lain-lain. Walau bagaimanapun, beberapa transaksi yang melibatkan rahnu perlu dikaji semula, dan dipinda supaya selari dengan Syariah.
Kata Kunci: Mortgage Islam, Rahnu, Kontrak Islam, Pembiayaan Rumah Islam, Institusi Kewangan Islam.
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Et.al, Muhammad Nazir Alias. "A Review of Maslahah Mursalah and Maqasid Shariah as Methods of Determining Islamic Legal Ruling." Turkish Journal of Computer and Mathematics Education (TURCOMAT) 12, no. 3 (April 10, 2021): 2994–3001. http://dx.doi.org/10.17762/turcomat.v12i3.1331.
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The position of maqasid shariah as reference for Islamic legal ruling has been a source of dissenting opinions among contemporary ulama. Some of them accept maqasid shariah as a method of determining legal principles, whereas others do not. In classical usul fiqh literature, the discourse on maqasid shariah among the ulama only appears in discussions on the position of maslahah mursalah as a method of determining Islamic legal ruling. In light of this, the issue arises when the position of maqasid shariah, specifically as a source of law, is not mentioned by classical ulama. Therefore, a small number of scholars are of the view that maqasid Shariah is not clearly applied in the process of determining legal ruling, such as what had happened in the Shafie school of law. This article aims to review the concept of maslahah mursalah and maqasid shariah in the context of its status as a method of determining Islamic legal ruling. The findings of the study show that maslahah mursalah is not maqasid shariah because both of them originate from different sources. The rejection of maslahah mursalah by some ulama does not refer to maslahah that is in line with the higher objectives of Islamic law (maqasid shariah), but refers to maslahah that relies solely on logic and intellect. The difference of opinion among contemporary ulama regarding the position of maqasid shariah as a method of determining legal principle stems from confusion in defining and categorising maslahah mursalah and maqasid shariah.
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K, Saidalavi, and MD Rashid Farooqi. "A Comparative Study on Financial Performance of Shariah Compliant Stocks and Conventional Stocks in India." GIS Business 13, no. 1 (February 7, 2018): 10–15. http://dx.doi.org/10.26643/gis.v13i1.3302.
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Islamic Equity Market consist the companies which follow the Shariah norms in their business activities to be Shariah compliant. The objectives of this study are to examine the performance of select Shariah-compliant shares listed in BSE (Bombay Stock Exchange), India and to compare the performance of Shariah-compliant stocks with select conventional stocks. The study reveals that the performance of Shariah-compliant stocks is better than conventional stocks during the select period of study and the return of Shariah-compliant securities is less volatile than the conventional securities.
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Mat Nor, Fauzias, Amir Shaharuddin, Ainulashikin Marzuki, and Nur Ainna Ramli. "Revised Malaysian Shariah Screening: Its Impact on Islamic Capital Market." Research in World Economy 10, no. 1 (June 9, 2019): 17. http://dx.doi.org/10.5430/rwe.v10n1p17.
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Shariah Advisory Council (SAC) of Securities Commission (SC) formulated a new revised Shariah screening methodology of two-tier quantitative assessment for activity-based screening benchmarks and the newly- formulated financial ratio benchmarks, while the qualitative assessment remains the same. The revised methodology is an effort to expand the Islamic capital market’s (ICM) international reach which is in line with the SC objectives. The objective of this paper is to examine the impact of the recent announcement of new changes in the Shariah screening methodology by the Malaysian Securities Commission on the share prices of the affected companies and Islamic capital market. We use an event study method to see if the changes have a significant reaction from the market, specifically, from investors and fund managers. On the announcement date, that is, on 29 November 2013, 158 non-Shariah compliant stocks were removed from the previous list of Shariah compliant stock that was issued in May 2013 and 16 stocks were added to the approved list. Out of 158 non-Shariah compliant stocks, only 137 stocks are available for the analysis. For the new Shariah compliant stocks, only 16 stocks are included in the sample. We find an immediate but short lived negative impact on the stock returns towards the deletion, but none towards the addition of new stocks to the Shariah index. However, the announcement has no significant impact on the overall return of the FBM Emas Shariah index.
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Kasamasu, Lateefah, Ahmadzakee Mahama, Wan Mohd Yusof Bin Wan Chik, Syed Mohd Azmi bin Syed Ab Rahman, Abdul Wahab Md Ali, and Norizan Abd Ghani. "Analisis Dalil Pengharaman Narkoba Dalam Karya-karya Kajian Islam Kontemporer." Wardah 18, no. 1 (September 27, 2017): 34. http://dx.doi.org/10.19109/wardah.v18i1.1431.
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Drugs are often associated with intoxicants. In the context of fiqih drugs usually dikiaskan to prohibition of wine. However, in line with the development of contemporary medical science, the works of the new fiqh also mention and emphasize that the effects of damage also have its own influence in relation to drug law. This study aims to explore and analyze the trends of contemporary jurisprudence works in explaining their backs in relating the status of Sharia law values to drug abuse. This study uses qualitative methods. The data obtained from these works were analyzed and made comparisons. A number of 10 contemporary works that discuss drug law and the reasons for its prohibition have been used in this study. The study concluded that the works agreed that drug abuse is haram according to the Shari'a. All activities related to drug abuse such as planting, processing, owning, buying or selling permits used to cooperate with its misuse are haram. Likewise, in terms of its proofing proposition, all works tend to see it is based on the kias to the wine based on the argument that drugs are potentially intoxicating. The works only mention the destructive aspect without emphasizing it as an important basis for the prohibition of drug abuse. This is certainly not in accordance with the reality of the threat of drugs that not only grab the function of the intellect alone, even damaging the five-five main objectives of Islamic law, namely religion, life, intellect, descent and wealth. Hence the affirmation of the restrictive section needs to be emphasized in an effort to ensure fair drug abuse is prevented and handled more seriously in order to ensure the well-being of the ummah is maintained.
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Alam, Md Kausar, Suhaimi Ab Rahman, Mosab I. Tabash, Oli Ahad Thakur, and Sharif Hosen. "Shariah supervisory boards of Islamic banks in Bangladesh: expected duties and performed roles and functions." Journal of Islamic Accounting and Business Research 12, no. 2 (February 10, 2021): 258–75. http://dx.doi.org/10.1108/jiabr-02-2020-0035.
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Purpose The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh. Design/methodology/approach A semistructured face-to-face interview was applied to accomplish the research objectives. In total, data was collected from 17 respondents with a combination of regulators, SSBs, Shariah department executives and experts from the central bank and Islamic banks in Bangladesh. Findings This study finds that the expectations of Islamic banks toward SSB members are to provide opinions on Shariah issues, guidelines and decisions regarding the modern banking, practices and delivering of fatwas on the contemporary issues offered by the management to fulfill the demand of the numerous stakeholders. In addition, they can develop Shariah governance (SG) policies and implement those guidelines, approve and develop new products, observe and monitor banking functions, identify problems and outline solutions as well as they should ensure Shariah principles and compliance. The SSBs members perform roles and functions in monitoring and reviewing overall banking activities and functions; reviewing products, services and contracts; preparing SG guidelines; ensuring Shariah principles and compliance; providing opinions on existing SG practices and finally, delivering Shariah resolutions on the overall functions. Research limitations/implications This study significantly contributed to the national regulatory bodies by providing suggestions that the existing SG system should be improved to enhance the overall monitoring of SSB and ensure more Shariah compliance in the overall operations of the Islamic banks in Bangladesh. Originality/value This is the first research to the best of authors’ knowledge that explores the expected duties and performed roles and functions of the Islamic banks concerning Bangladesh. This study also contributes to the agency, legitimacy and stakeholder theories by outlining the expected and performed roles of SSBs to the Islamic banks and stakeholders.
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Kamal, Husni, and Arinal Rahmati. "KONSEP MAQASHID SYARIAH DALAM PENGEMBANGAN PRODUK LEMBAGA KEUANGAN ISLAM." AT-TIJARAH: Jurnal Penelitian Keuangan dan Perbankan Syariah 2, no. 2 (December 12, 2020): 120–33. http://dx.doi.org/10.52490/at-tijarah.v2i2.962.
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Islamic law has been stipulated by Allah is for human advantage, both in worldly life and in the hereafter. In order to prove that Islamic economics remains relevant whenever and wherever the objectives of maqashid shariah is needed to be implemented for creating innovative products. By doing so, shariah financial institutions are able to compete with the conventional, and at the same time they stay true to Islamic teaching principles. This article aims firstly to examine the concept of maqashid shariah on new product development of Islamic financial institution, and secondly to explore the suitability of shariah banking product with the principles of maqashid shariah. In nature, the purpose of the implementation of Shariah transactional system is for seeking human benefit both in this life and hereafter. Hence, the concept of maqashid shariah should be able to be integrated into Shari’ah banking so that its products can be hopefully broader. In short, through maqashid shariah, it creates innovative products of shariah financial institutions.
Keyword: Maqashid Shariah, Islamic Financial, Islamic Banking.
Abstrak
Setiap hukum yang ditetapkan Allah kepada ummatnya terdapat kemashlahatan baik didunia maupun di akhirat, untuk menjawab bahwa ekonomi Islam sesuai dengan kondisi zaman maka maqashid syariah sangat diperlukan untuk menciptakan produk yang inovatif sehingga lembaga keuangan syariah bisa bersaing dengan produk lembaga keuangan konvensional dan tidak bertentangan dengan prisnsip-prinsip Islam. Artikel ini bertujuan untuk mengkaji konsep maqashid syariah dalam pengembangan produk lembaga keuangan islam, secara khusus, artikel ini juga melihat kesesuaian produk yang ditawarkan oleh perbankan syariah agar sesuai dengan konsep yang telah dituangkan dalam maqashid syariah, karena pada hakikatnya melakukan transaksi dengan sistem syariah bukan saja mencari keuntungan di dunia saja, namun juga untuk mencapai maslahah dunia akhirat, oleh karena itu, konsep maqashid syariah harus mampu di integrasikan kedalam perbankan syariah agar produk yang dihasilkan tidak kaku dan sempit sehingga terhambat terhadap perkembangan lembaga keuangan syariah. harapannya, dengan memahami konsep maqashid syariah maka diharapkan bisa menciptakan produk-produk inovatif di lembaga keuangan syariah.
Kata kunci: Maqashid Syariah, Keuangan Islam, Bank Syariah
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Azli, Rafidah Mohd, Rohana Othman, Mardiyyah Sahri, Nooraslinda Abdul Aris, Roshayani Arshad, and Abdul Razak Yaakob. "Implementation Of Maqasid Shariah In Islamic House Financing: A Study Of The Rights And Responsibilities Of Contracting Parties In Bai Bithaman Ajil And Musharakah Mutanaqisah." Journal of Applied Business Research (JABR) 27, no. 5 (August 9, 2011): 85. http://dx.doi.org/10.19030/jabr.v27i5.5595.
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<span>The Maqasid-oriented approach in Islam demonstrates the Muslims commitment to uphold the authenticity of Islam as a religion and a complete way of life (ad-din). Maqasid Shariah is a transparent tool to outline and clarify the effective extent of the rights and responsibilities of the Mukallaf (servant of Allah) towards each other. Ignorance on Maqasid Shariah in Islamic business transactions, particularly for Islamic house financing led to misinterpretation, disruption, chaos, and trivial conflicts among the contracting parties. This paper discusses the implementation of Bai Bithaman Ajil (BBA) and Musharakah Mutanaqisah (MM) Home Financing instruments as practiced in Malaysia using the method of Imam al Shatibi. This paper concluded that a sound understanding of the knowledge, goals, and objectives of the Shariah at every level of a contract involving parties to a sale and purchase in Islamic Home Financing would enable improvement in practice through ijtihad (collective decision or general consensus). The Maqasid Shariah (the objective of Islamic Jurispudence) is adequate to provide the appropriate vehicle and procedure for the fulfillment of rights and responsibilities of contracting parties, thereby eliminating all sorts of financial criminology in trading and business (Kamali, 2002).</span>
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Gulzar, Rosana, Mansor H. Ibrahim, and Mohamed Ariff. "Islamic Banks: History, Stability and Lessons from Cooperative Banking." Jurnal Institutions and Economies 13, no. 3 (July 1, 2021): 1–26. http://dx.doi.org/10.22452/ijie.vol13no3.1.
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Islamic banking’s profit-maximising fervour, building upon the use of interest-resembling products, has raised concerns about its Shariah authenticity and financial stability. While early Islamic economists envisioned an industry built on values of mutuality and participation, architects of Islamic banking have chosen to replicate interest-based conventional banking for the purpose of fast growth. This study has two objectives. First, to narrate the history of Islamic banking, from the theories postulated to the beginnings of the industry. This builds an understanding of why ‘Islamic’ banking operates as it does currently, which has implications for Shariah compliance and financial stability. It is suggested that the mimicking of conventional banks may cause instability since unlike commercial banks, ‘Islamic’ banks face Shariah constraints. This leads to the second objective, which is to analyse the cooperative banking model, which has been described as the closest theoretical model to Islamic banking. Specifically, this study focuses on the model in Europe which, despite its challenges, has managed to silence critics in the way it contributes to communal welfare and financial stability, especially during credit crunches when commercial banks are known to retreat from markets. This first study of a functioning cooperative banking model, in the context of Islamic banking, may thus offer lessons for Islamic banking reform.
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Bhutto, Sarfaraz Ahmed, Saifullah Shaikh, Hussain Amar, and Qamar Abbas Mangi. "The Classification of Sharia Assets and Performance of Financial Portfolio." Turkish Journal of Islamic Economics 8, no. 2 (August 15, 2021): 517–30. http://dx.doi.org/10.26414/a179.
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The paper investigates the Shariah compliant and conventional portfolios in financial settings of Pakistan during the period 2009-2019 by using Markowitz Minimum-Variance (MMV) framework. Using daily excess returns, we first investigate the impact of Shariah screening criteria on stock returns then we evaluate the overall risk of Shariah compliant and conventional portfolios. The results reveal negative impact of Shariah screening criteria on stock returns’ cross-section. Further, unconstrained portfolio investment strategy outperforms faithbased investing. Finally, the findings of the study suggest that induction guidelines employed in PSX for companies to be listed in Shariah compliant index needs to be reviewed to practically attain the objectives of Islamic moral economy such as avoiding Gharar (uncertainty) and Maysir (speculation). More importantly formulate a criterion that truly reflects Islamic principles of investing. In addition, more could also be done to educate investors about Shariah compliant stocks and enhance the projection of Shariah compliant index. Secondly, our study also indicates that investors that prefer faith based investing should be aware of the costs of faith investment in PSX. Investors can encounter additional costs while investing in Shariah compliant stocks. Moreover, these additional costs are driven high risk and low performance of faith portfolios.
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Omar, Hani Nabila, and Rusni Hassan. "Shariah Non-Compliance Treatment in Malaysian Islamic Banks." International Journal of Management and Applied Research 6, no. 4 (November 1, 2019): 220–33. http://dx.doi.org/10.18646/2056.64.19-016.
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Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new innovative Islamic products and financial projects which may lead to greater risk of Shariah Non-compliance (SNC) exposure to the Islamic Financial Institutions (IFIs) in its effort to stay competitive. This paper attempts to explore the current practices of Islamic banks in treating (SNC) and the extent of compliance with BNM rules and guidelines, particularly BNM Operational Risk Integrated Online Network (ORION) requirement on SNC reporting event. This paper adopts a qualitative research method by conducting semi-structured in-depth interview with the Islamic banking professionals targeting five Islamic banks. Both primary and secondary sources are used for data collection. The finding shows that these Islamic Banks adhere to the BNM rules and requirements, with some minor differences in the implementation process. The findings would contribute positively in terms of enriching and contributing to the existing literature on the SNC practices by Islamic Banks whilst at the same time establishing the levels of compliance of the banks under investigation.
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Ayu Yunanda, Rochania, Mohammad Ali Tareq, Akbariah Binti Mahdzir, and Faried Kurnia Rahman. "NATIONAL CULTURE AND TRANSPARENCY: EVIDENCE FROM ISLAMIC BANKS." Journal on Innovation and Sustainability. RISUS ISSN 2179-3565 10, no. 1 (March 12, 2019): 101–9. http://dx.doi.org/10.24212/2179-3565.2019v10i1p101-109.
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The purpose of this paper is to investigate the effects of predominant cultural values on banking disclosure. On one hand, Islamic banks have practiced Islamic principles which are universal for all countries. Islamic banks are expected to provide transparent information especially in terms of social and Shariah(Islamic) compliant information as Islamic banks claim themselves to have social objectives as the prime consideration. Islamic banks also have Shariah supervisory body to ensure that the banking activities and business operations are in line with Islamic requirements. On the other hand, Hofstede‘s cultural dimensions and Gray‘s hypotheses have rendered remarkable contributions in financial and accounting practices among different nations. Examining 45 Islamic banks in 11 Moslem majority countries, this paper focuses on four particular cultural dimensions namely individualism/collectivism, masculinity/femininity, uncertainty avoidance, and power distance and whether these dimensions have an impact on transparency. This study found that two out of four national cultures still have significant effect on the transparency level in Moslem majority countries.
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Muhammad, Najihah, Sharifah Faigah Syed Alwi, and Nabihah Muhammad. "Credit Management in Full-Fledged Islamic Bank and Islamic Banking Window: Towards Achieving Maqasid Al-Shariah." International Journal of Financial Research 11, no. 3 (June 30, 2020): 92. http://dx.doi.org/10.5430/ijfr.v11n3p92.
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The percentage of non-performing loans (NPL) and non-performance financing (NPF) in Malaysia commercial banks is under control and does not increase in its percentage since the year 2014 to 2016. These scenarios are the result of the stringent credit management procedures in the commercial banks which if not properly followed could affect banks’ profitability and liquidity. However, there are critics by the public on how Islamic banks normally tend to punish their customers who are the real traders or businessman without fixed monthly income when they slightly late in paying their periodical payment for the bank’s facility or financing. Islamic bank is supposed to help the customer in order for it to achieve maqasid al-Shariah (objectives of Shariah). Thus, this study intends to compare the credit management’s procedure in one of the full-fledged Islamic banks and one of the conventional banks which also offer Islamic banking window. This study also aims to identify the achievement of maqasid al-Shariah through the procedures of credit management in the two banks. This study adopted the qualitative methodology where semi-structured interviews are conducted with 2 bankers from one of the full-fledged Islamic banks and one of the conventional banks which also offer Islamic banking window. Results from this study indicated that each banks has their own strategies and procedures with regard to credit management. Their credit management plans were structured to help customers to secure their loans, financing and assets as well as protecting them from bankruptcy and insolvency which basically comply with maqasid al-Shariah. From this study, it is recommended for commercial banks to apply a strict approval process for loan and financing as well as a strict credit monitoring system to avoid NPL and NPF.
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Mahinar Abu Bakar, Noor, Norhashimah Mohd Yasin, and Ng See Teong. "UNFAIR CONTRACT TERMS IN MALAYSIAN ISLAMIC BANKS: EMPOWERING BANK CONSUMERS BY ISLAMIC EDUCATION ETHICS." Humanities & Social Sciences Reviews 8, no. 2 (March 11, 2020): 13–24. http://dx.doi.org/10.18510/hssr.2020.823.
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Purpose of study: The purpose of this study is to examine the importance of Islamic education ethics-based on the objectives of Shariah (maqasid al-Shariah) to bank consumers in raising their knowledge about their contractual rights and obligations since better-decision making empowers them to avoid unfair contractual terms in transactions with Islamic banks and manage their financial affairs responsibly.
Methodology: Using qualitative analysis, this study reviews previously selected literature on Islamic education ethics and applies maqasid al-Shariahas a benchmark to determine the importance of Islamic financial literacy education. To emphasize such importance, the contents of both primary and secondary data are analyzed which include: official websites of Bank Negara Malaysia, books, academic journals, newspapers, and related industry reports.
Result: Results shows that the Islamic educational ethics based on maqasid al-Shariah empowers bank consumers to improve their reading habits in making informed choices to assert their rights by being aware of the content and fairness of contract terms towards raising their financial literacy standard in avoiding unfair contractual terms and be equipped with Islamic financial knowledge and skill to demand for equitable contractual terms.
Applications of this study: This study is important to Malaysian bank consumer empowerment since applying Islamic education ethics contributes to sound financial choice and better-decision making of whether or not to contract with IBIs since having no basic knowledge of contractual rights and obligations with Islamic banks, then they have little defense against one-sided and unfair contractual content.
Novelty/Originality of this study: Because bank consumers do not read their contracts; this study promotes Islamic education ethics in empowering bank consumers to improve financial literacy in avoiding unfair contractual terms while making informed financial decisions and increase acceptability of Islamic banking products. This study contributes to the literature on Islamic ethics specifically on Islamic financial literacy educational ethics base on maqasid al-Shariah.
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Ramli, Aliza, Fadzlina Fahmi, Faizah Darus, and Mustaffa Mohamed Zain. "Corporate Social Responsibility in Malaysian Organisations: Community Environmental Dimensions and Islamic Perspective." Journal of Social Sciences Research, SPI 1 (March 15, 2019): 184–90. http://dx.doi.org/10.32861/jssr.spi1.184.190.
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Islamic organizations have the upmost responsibility to ensure that their business operations comply with Shariah principles. However, their approaches to positive actions through Corporate Social Responsibility (CSR) have been varied because of inadequate guidance on the initiatives based on Islamic principles. Despite that CSR has been widely researched and is considered by most as a compulsory practice to be competitive, the current framework for CSR does not incorporate the Shariah principle to explain corporate involvement in social and environmental activities for Islamic organizations. Therefore, utilizing the Islamic CSR framework (i-CSR), this paper explores the current state of CSR initiatives and the motives for stakeholder engagement specifically from the environmental community dimension within Malaysian Islamic organizations. Semi-structured interviews with ten personnel from five Islamic organizations were conducted face to face at the field site. Data analyzed using NVivo software reveals that these organizations have embraced social responsibility beyond its business purpose. The CSR activities are in line with the Shariah principle and are influenced by multiple motivations. The results suggest the importance of an appropriate CSR framework and if adopted, it can be an important element of the overall governance and accountability framework of an Islamic organization.
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Ramli, Aliza, Fadzlina Fahmi, Faizah Darus, and Mustaffa Mohamed Zain. "Corporate Social Responsibility in Malaysian Organisations: Community Environmental Dimensions and Islamic Perspective." Journal of Social Sciences Research, Special Issue 5 (December 15, 2018): 1051–57. http://dx.doi.org/10.32861/jssr.spi5.1051.1057.
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Islamic organizations have the upmost responsibility to ensure that their business operations comply with Shariah principles. However, their approaches to positive actions through Corporate Social Responsibility (CSR) have been varied because of inadequate guidance on the initiatives based on Islamic principles. Despite that CSR has been widely researched and is considered by most as a compulsory practice to be competitive, the current framework for CSR does not incorporate the Shariah principle to explain corporate involvement in social and environmental activities for Islamic organizations. Therefore, utilizing the Islamic CSR framework (i-CSR), this paper explores the current state of CSR initiatives and the motives for stakeholder engagement specifically from the environmental community dimension within Malaysian Islamic organizations. Semi-structured interviews with ten personnel from five Islamic organizations were conducted face to face at the field site. Data analyzed using NVivo software reveals that these organizations have embraced social responsibility beyond its business purpose. The CSR activities are in line with the Shariah principle and are influenced by multiple motivations. The results suggest the importance of an appropriate CSR framework and if adopted, it can be an important element of the overall governance and accountability framework of an Islamic organization.
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Amin, Aminullah Khan, and Abdulhameed Khan Abbasi. "مقاصد شریعت (تعارفی مطالعہ)." Al-Duhaa 1, no. 1 (July 10, 2020): 207–28. http://dx.doi.org/10.51665/al-duhaa.001.01.0056.
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The ultimate objectives of shariah have been indicated (stated) in numerous verses of the Holy Quran and in the sacred traditions of Holy profit (SAWS) and a set of reforms have been highlighted for enforcement as a purpose of divine commands. Brillscholars and stalwarts of Islamic sciences like Imam Ghazali, Allama Azzedine bin Abdus salam Allama ibn e Qayyum, Allama Shatbi, and imam Shah Wali Ullah R.A have rendered their valuable services in the above-mentioned domain. This article is an introductory study of that knowledge and in the article significance and essentiality of the purposes of shariah have been explained after detailed interpretations of these purposes. Opinions of ancient and modern experts of the concerned field of knowledge have also been incorporated. Finally, various types of objectives of shariah have been debated.
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Mohamad Yunus, Mohamad Ismail Bin. "Good Governance According to Islamic Perspective." FIAT JUSTISIA:Jurnal Ilmu Hukum 11, no. 3 (February 28, 2018): 200. http://dx.doi.org/10.25041/fiatjustisia.v11no1.696.
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The objectives of the professional agencies must embody provisions that promote good governance and embrace values of integrity and accountability and seek support from the public and the government of the day to provide an independent view on all matters. The universal truth is that everything should be done in the public good. Professionals form the backbone of human infrastructure in any economy, politics, social and legal growth. Their contributions through professional performance enhance the good delivery system that facilitates policies making and management for public sector. They provide the skills and talent in balancing the pursuits of maximization of services. The expression “good governance” has constantly been used lately in both public sector as well as private sector in Malaysia. In the context of a private body, it should be within the framework of the statute, which governs the body and also its constitution. In the public sector, it means that the administrators should act professionally and not to abuse or misuse the power or authority given to them. They are regarded as the trustees of the public at large. The scope of this article is on good public governance in the public sector or to be exact, good governmental administration as interpreted by the judiciary especially through its judicial review power and Islamic Perspective based on the principles of Maqasid As Shariah (Objectives of Islamic Law). Keywords: Good Governance, Public Sector, Malaysian Law, Islamic Perspective, Maqasid As-Shariah.
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Rahim, Ahmad Khilmy Abdul, Azizi Abu Bakar, and Mohd Murshidi Mohd Nor. "The Innovations of Hibahasan Instrument of Islamic Finance and Islamic Estate Management in MalaysiaAhmad Khilmy Abdul Rahim." Webology 18, SI03 (January 13, 2021): 112–26. http://dx.doi.org/10.14704/web/v18si03/web18023.
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The application of hibah as an instrument in estate management is gaining popularity among the Muslim community in Malaysia. “Hibah is a unilateral contract” that elevate welfare and charity. The Islamic financial institutions in Malaysia, including Islamic banks as well as Islamic wealth institutions apply varities of hibah instruments in the products accessible by them. Hibah is a cooperating shariah contract in the Malaysia‟s Islamic banking and financial framework. The aim is to incentivize clients for storing their cash into the institution as well as remunerate for clients to pay their financing by agreeing planned. The use of hibah is based on the stated fundamentals and objectives of the “Shariah Advisory Council (SAC) of Bank Negara Malaysia”. Nowadays, hibah instrument has been applied in various forms using Islamic financial institutions especially in Malaysia. This article discusses and analyzes in general the application of contemporary forms of hibah such as Trust Hibah (Hibah Amanah), Conditional Hibah (Hibah Mu'allaqah), Hibah with discussion (Hibah Bi al-Thawab), hibah in saving account (Wadiah) and rental (al-Ijarah) accounts and hibah in Takaful benefit.
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Abozaid, Abdulazeem. "Penalty and Compensation in Financial Commitments - A Critical Shariah Review." مجلة كلية الشريعة و الدراسات الإسلامية 38, no. 2 (January 2021): 253–66. http://dx.doi.org/10.29117/jcsis.2021.0276.
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Purpose: The aim of this paper is to critically review the position of Shariah and contemporary ijtihād on penalty provisions in financial commitments. It is also to show that some relevant fiqh resolutions have dealt differently with similar issues despite the absence of any grounds for such differentiation and to show how penalty provision in contracts has been expanded to include what cannot be accommodated by Shariah principles. All this necessitates a review of those stances, as they may have both unnecessarily burdened the Islamic finance industry and challenged some Shariah principles. Methodology: This paper employs a qualitative research methodology that adopts textual and fiqh comparative analysis approaches. The methodology also incorporates a macro perspective for treating the subject by analyzing the issues being examined from the perspective of Maqāṣid al-Shariah (Shariah objectives) in consideration of existing market practices and needs. Findings: This study primarily indicates that penalties or compensation provisions in contracts are accepted if they are intended to prevent actual harm rather than for gain, because profiting merely through stipulation is forbidden in Islamic law. Originality: Although this paper addresses an issue that has been addressed before, it acquires significance and value by setting the basis for what constitutes a valid penalty provision in Islamic finance and by showing areas of conflict and inconsistency in some of the contemporary stands on the matter, thus necessitating a review of these stances.
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Murphy, Maurice J., and Jan M. Smolarski. "Religion and CSR: An Islamic “Political” Model of Corporate Governance." Business & Society 59, no. 5 (January 1, 2018): 823–54. http://dx.doi.org/10.1177/0007650317749222.
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This article examines the political perspective of corporate social responsibility from the standpoint of normative Islam. We argue that large firms within Muslim majority countries have the moral obligation to assist governments in addressing challenges related to sustainable socioeconomic development and in advancing human rights. In substantiating our argument, we draw upon the Islamic business ethics, stakeholder theory, and corporate governance literatures, as well as the concepts of Maqasid al Shariah (the objectives of Islamic law) and fard al ‘ayn (obligation upon all individuals within society) versus fard al kifayah (obligation upon some individuals within society) to introduce a normative model elucidating critical Islamic precepts. Finally, we propose an Islamic “political” corporate governance framework, which democratizes firm decision making by embedding “core” stakeholders, nongovernmental organizations (NGOs), and Shariah scholars in the corporate board, thereby enhancing the ability of businesses to respond to stakeholder concerns and priorities, while mitigating interstakeholder and intraboard power asymmetries.
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Kunhibava, Sherin. "Islamic Banking in Malaysia†." International Journal of Legal Information 40, no. 1-2 (2012): 191–201. http://dx.doi.org/10.1017/s0731126500006478.
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AbstractIslamic banking is the conduct of banking according to Shariah or Islamic law. Statistically Islamic banking has had phenomenal growth, according to the Asian Banker Research Group, the world's 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing an average growth of 15-20% annually1. Recently the Prime Minister of Malaysia commented that Malaysia has been maintaining its leadership in Islamic banking and finance for over three decades2. As an International leader in Islamic banking, it would be interesting to explore the development of Islamic banking in Malaysia. This will be the objective of this paper. This paper will focus on the historical development of Islamic banking in Malaysia, from the creation of the Haj Pilgrim's Fund Board in the 1960s to the current Islamic banking scene of 17 local Islamic banks and five International Islamic banks in operation. This paper will also explore the unique regulatory and governance framework of Islamic banking in Malaysia, by touching on the Islamic banking Act 1983, the Central Bank of Malaysia Act 2009, the Banking and Financial Institutions Act 1989 and the Shariah Governance Framework introduced in 2011 by the Central Bank of Malaysia. This paper will also briefly introduce how Islamic banking works.