An Islamic bank issued a letter of credit (LC) with a usance period of 90 days, with financing through a Murabahah facility for another 90 days
Fatawa Question
An Islamic bank issued a letter of credit (LC) with a usance period of 90 days, with financing through a Murabahah facility for another 90 days. Upon receiving the shipping documents, the bank signed the Murabahah agreement with the customer and delivered the goods to the customer by endorsing the shipping documents in favor of the customer. The customer being a trader, after getting title and possession of the subject goods, sold the same to other buyers. Now, as the payment date to the supplier is close by, the customer has requested the bank to terminate the Murabahah facility and to make payment to the supplier from funds that will be provided by the customer. In order to maintain a good relationship with the customer the bank is willing to accept the customer’s request, especially as the bank did not incur any cost by making any payment to the supplier. Shariah guidance is sought in this regard.
Fatwa
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Publisher
Publication Date
2014-03-19
Country of Publication
Malaysia
Main Subjects
Economics & Business Administration
Islamic Studies
Data Type
Fatawa
Language
English
Record ID
BIM-783576
American Psychological Association (APA)
Hassan, Husayn Hamid. 2014-03-19. An Islamic bank issued a letter of credit (LC) with a usance period of 90 days, with financing through a Murabahah facility for another 90 days. . Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783576
Modern Language Association (MLA)
Hassan, Husayn Hamid. An Islamic bank issued a letter of credit (LC) with a usance period of 90 days, with financing through a Murabahah facility for another 90 days. Kuala Lumpur Malaysia : Islamic Finance News. 2014-03-19.
https://search.emarefa.net/detail/BIM-783576
American Medical Association (AMA)
Hassan, Husayn Hamid. 2014-03-19. An Islamic bank issued a letter of credit (LC) with a usance period of 90 days, with financing through a Murabahah facility for another 90 days. Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783576