Dual agency practices in Islamic financial institutions : a fiqh perspective
Joint Authors
Shahr al-Din, Amir
Musa, Aizul Aiman
Nawi, Fatin Syahirah Muhammad
Ahmad, Adi Hanif Muhammad
Mumin, Makrami Ab.
Source
Journal of Fatwa Management and Research
Issue
Vol. 21, Issue 1 (31 Jul. 2020), pp.38-48, 11 p.
Publisher
Islamic Science University of Malaysia World Fatwa Management and Research Institute
Publication Date
2020-07-31
Country of Publication
Malaysia
No. of Pages
11
Main Subjects
Economy and Commerce
Islamic Studies
Abstract EN
Bay al-tawarruq is increasingly adopted by Malaysian Islamic financial institutions (ifis) in creating both deposit and financing products.
the contract involves sequences of trading between three parties namely client, ifis and brokers.
however, in order to simply the operation and to minimize client’s involvement, the actual trading are conducted between ifi and brokers only.
ifi will act on behalf of the client and execute all trading transactions.
the practice triggers fiqh issue because the ifi (as agent of client) will sell and purchase commodity to himself.
the present article discusses the issue by assessing Muslim jurists’ view pertaining to dual agency practices.
the article adopts juristic analysis method in which classical and contemporary scholars arguments are analysed before a preferred opinion (tarjih) is concluded.
understanding the issue is vital to avoid misunderstanding about the legality of Islamic financial products particularly products that used the organized bay’ al-tawarruq as the underlying contract.
American Psychological Association (APA)
Shahr al-Din, Amir& Musa, Aizul Aiman& Nawi, Fatin Syahirah Muhammad& Ahmad, Adi Hanif Muhammad& Mumin, Makrami Ab.. 2020. Dual agency practices in Islamic financial institutions : a fiqh perspective. Journal of Fatwa Management and Research،Vol. 21, no. 1, pp.38-48.
https://search.emarefa.net/detail/BIM-1298149
Modern Language Association (MLA)
Shahr al-Din, Amir…[et al.]. Dual agency practices in Islamic financial institutions : a fiqh perspective. Journal of Fatwa Management and Research Vol. 21, no. 1 (Jul. 2020), pp.38-48.
https://search.emarefa.net/detail/BIM-1298149
American Medical Association (AMA)
Shahr al-Din, Amir& Musa, Aizul Aiman& Nawi, Fatin Syahirah Muhammad& Ahmad, Adi Hanif Muhammad& Mumin, Makrami Ab.. Dual agency practices in Islamic financial institutions : a fiqh perspective. Journal of Fatwa Management and Research. 2020. Vol. 21, no. 1, pp.38-48.
https://search.emarefa.net/detail/BIM-1298149
Data Type
Journal Articles
Language
English
Record ID
BIM-1298149