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Sharīʿah non-compliant assets as rahn (pledge) in Islamic banking products : a fiqhī perspective
Joint Authors
Ali, Muhammad Mahbubi
Husayn, Luqman al-Hakim
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 9, Issue 2 (31 Dec. 2017), pp.196-199, 4 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2017-12-31
Country of Publication
Malaysia
No. of Pages
4
Main Subjects
Abstract EN
Purpose – The purpose of this study is to present a framework regarding the use of Sharīʿah non-compliant assets as rahn (pledge) and to provide the Sharīʿah analysis on the application of numerous collateral instruments, including financial assets such as shares, unit trusts, current accounts and investment accounts which are Sharīʿah non-compliant.
Design/methodology/approach – The study adopts a library-based approach to examine the concept and requirements of rahn, deliberate the classification of Sharīʿah non-compliant assets and delineate the Sharīʿah views on the use of Sharīʿah non-compliant assets as pledges.
It also examines the various forms of pledge available and offered in the market using document analysis as well as through discussion with industry practitioners.
Findings – In general, the study concludes that Sharīʿah non-compliant assets, either due to their essence or due to the means of acquisition where there is no ownership from Sharīʿah perspective, cannot be used as rahn.
This study also provides the Sharīʿah analysis on the use of modern instruments such as shares, unit trusts, current accounts, investment accounts and insurance policy as pledges.
Originality/value – The paper provides a reference source for regulators in formulating an appropriate policy and framework on Sharīʿah-compliant collateral; Sharīʿah committees of Islamic financial institutions in arriving at Sharīʿah decisions on collateral; and industry practitioners in establishing internal policies and procedures on collateral.
American Psychological Association (APA)
Husayn, Luqman al-Hakim& Ali, Muhammad Mahbubi. 2017. Sharīʿah non-compliant assets as rahn (pledge) in Islamic banking products : a fiqhī perspective. ISRA International Journal of Islamic Finance،Vol. 9, no. 2, pp.196-199.
https://search.emarefa.net/detail/BIM-965270
Modern Language Association (MLA)
Husayn, Luqman al-Hakim& Ali, Muhammad Mahbubi. Sharīʿah non-compliant assets as rahn (pledge) in Islamic banking products : a fiqhī perspective. ISRA International Journal of Islamic Finance Vol. 9, no. 2 (2017), pp.196-199.
https://search.emarefa.net/detail/BIM-965270
American Medical Association (AMA)
Husayn, Luqman al-Hakim& Ali, Muhammad Mahbubi. Sharīʿah non-compliant assets as rahn (pledge) in Islamic banking products : a fiqhī perspective. ISRA International Journal of Islamic Finance. 2017. Vol. 9, no. 2, pp.196-199.
https://search.emarefa.net/detail/BIM-965270
Data Type
Journal Articles
Language
English
Notes
Text in English ; abstracts in .
Record ID
BIM-965270