Juristic analysis of the profit distribution method of Malaysian Islamic Banks
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 2, Issue 2 (31 Dec. 2010), pp.7-24, 18 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2010-12-31
Country of Publication
Malaysia
No. of Pages
18
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
Abstract EN
The relationship between depositors and Islamic banks is governed by a mudarabah contract.
In principle, the former are regarded as rabb ul-mÉl (capital providers) while the latter are considered as muÌÉrib (entrepreneurs).
Profit generated from the business will be shared between both parties according to a pre-determined ratio.
The present article reviews some SharÊÑah issues which arise from the profit distribution method implemented in Malaysian Islamic banking institutions.
It examines to what extent the current practices fulfil the principles and the ethical framework of the mudarabah contract as propounded by the classical jurists.
The article analyses the justifications of the local SharÊÑah scholars in modifying the doctrine to adapt to the modern banking business.
This includes their decisions in authorising the Weighted Method (WM), the Profit Equalisation Reserve (PER), the indicative profit rate and the interim profit payment.
American Psychological Association (APA)
Shaharuddin, Amir. 2010. Juristic analysis of the profit distribution method of Malaysian Islamic Banks. ISRA International Journal of Islamic Finance،Vol. 2, no. 2, pp.7-24.
https://search.emarefa.net/detail/BIM-717756
Modern Language Association (MLA)
Shaharuddin, Amir. Juristic analysis of the profit distribution method of Malaysian Islamic Banks. ISRA International Journal of Islamic Finance Vol. 2, no. 2 (Dec. 2010), pp.7-24.
https://search.emarefa.net/detail/BIM-717756
American Medical Association (AMA)
Shaharuddin, Amir. Juristic analysis of the profit distribution method of Malaysian Islamic Banks. ISRA International Journal of Islamic Finance. 2010. Vol. 2, no. 2, pp.7-24.
https://search.emarefa.net/detail/BIM-717756
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 23-24
Record ID
BIM-717756