<i>Sharīʿah</i> issues on <i>taʿwidh</i> in Malaysia

Ishak, Muhammad Shahrul Ifwat

doi:10.1108/imefm-03-2018-0117

Cited by 5 publications

(5 citation statements)

References 5 publications

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“…So far, Islamic banking circles generally still focus on Sharia loyalists or fanatical markets towards Sharia (Kamarudin et al, 2014;Ishak 2019). However, Islamic banks have not captured the floating market or the market that is not too passionate about a banking system, conventional or Shariah (Masvood 2019;Anagnostopoulos, Noikokyris, and Giannopoulos 2020;Sun, Mohamad, and Ariff 2017).…”

Section: Discussionmentioning

confidence: 99%

“…The average competitiveness of banks is lower than the level of competition in the banking market. His research specifically seeks to determine whether the competitiveness of Islamic banks is significantly higher or lower than that of conventional banks (Louati, Louhichi, and Boujelbene 2016;Sukardi and Wijaya 2013;Ishak 2019;Ben Bouheni and Ammi 2015;Mawardi et al 2020).…”

Section: Competitivenessmentioning

confidence: 99%

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How Does Strengthening Islamic Banking Competitiveness? Indonesia Evidence

M.S.I¹,

Riyadi²

2022

JPSDa

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The quality of service provided depends on the ability of service providers to meetcustomers’ expectations. This study aims to determine the impact of Islamic servicequality and floating market methods on the competitiveness of Islamic banks. Thisstudy used quantitative methods with non-probability sampling techniques, usingpurposive sampling techniques. The study population was BTN Syariah customers.The data acquisition was made by spreading questionnaires to customers. Informationgleaned from specific considerations tailored to the research’s purpose or problemand data analysed by multiple linear regression techniques. The results showed thatIslamic service quality affects the competitiveness of Islamic banks, and marketingmethods based on the floating market affect the competitiveness. The study improvedBTN Syariah Indonesia’s competitiveness in Islamic service quality and marketingmethods based on the floating market. This research helps banks recognise the pointsand strategies for strengthening Islamic banks’ competitiveness and generatingpositive experiences to gain customer loyalty with the proper approach, namelyIslamic service quality and marketing strategies with floating market methods.

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Section: Discussionmentioning

confidence: 99%

Section: Competitivenessmentioning

confidence: 99%

How Does Strengthening Islamic Banking Competitiveness? Indonesia Evidence

M.S.I¹,

Riyadi²

2022

JPSDa

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“…In conventional finance, late payment charge based on interest could be signified as a possibility to deal with special risks, particularly credit risk. While this charge could not be imposed by Islamic financial institutions because of the element of riba jahiliyyah, thus a special mechanism is necessarily needed in Islamic finance to deal with the decrease of NPL (non-performing loan) as well as the actual loss of incurring additional expenditure, such as cost for issuing notices and letters, and legal fees (Ishak, 2019). In this regard, an alternative late payment charge of taʿwid (compensation) is established as the charge is based on actual loss that resulting from the deliberate delay in repayment from customers (Bank Negara Malaysia, 2010).…”

Section: Regulation and Governance Aspectsmentioning

confidence: 99%

Replacing Conventional Finance with Islamic: A Wisdom from the Qur’an

Nasir¹,

Ishak²

2021

IJARBSS

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“…However, if delaying payment is due to negligence, bad attitude or trick to avoid the commitment, then late payment penalty should be imposed to protect Islamic banks and their funds. To correspond with the verse, this penalty must also differ from the late penalty in conventional banking, as it should not aim for the profit (Ishak, 2019b).…”

Section: Maqasid Al-shariah In Islamic Financementioning

confidence: 99%

The role of maqasid al-Shariʿah in applying fiqh muamalat into modern Islamic banking in Malaysia

Ishak

Asni

2020

JIABR

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Purpose This paper aims to explore the practical role of maqasid al-Shari’ah in applying fiqh muamalat to the reality of modern banking practices. As the modern financial environment is complicated and not too conducive for Islamic banking operations, a special approach based on maqasid al-Shari’ah is needed to harmonize between revelation and reality. Design/methodology/approach The data of this study are obtained through literature and empirical data. As for the empirical, the exploratory qualitative approach is applied in which three members of the Shari’ah Advisory Council (SAC) of Bank Negara Malaysia (BNM) as well as three Shari’ah committees (SC) of Islamic Finance Institutions are selected as interviewees. As a result, several themes are defined from the interview data before they are analyzed based on the concept of maqasid al-Shari’ah. Findings The findings reveal that several practices are prevalent in developing Islamic banking products, including replicating conventional products to be Islamic ones, imposing wa’ad (unilateral promise) to strengthen the combination of different contracts into one product, and adopting floating rate with ibra’ (rebate) for financing price, which are needed to sustain this industry in modern financial system. In this regard, maqasid al-Shari’ah is applied to reconcile between rulings in fiqh muamalat and banking environments, so that these rulings can be adopted pragmatically without compromising Shari’ah principles. Research limitations/implications This study has its limitations, as it focuses on the extent of the role of the maqasid al-Shari’ah in Islamic banking operations, excluding other segments of Islamic finance such as Islamic capital markets and Islamic insurance. Moreover, as data are collected from only six interviewees from SAC and SC of Malaysia, the results cannot be represented for the whole Islamic banking practices of this country. Practical implications This study provides several policy recommendations regarding the practice of the maqasid al-Shari’ah in Islamic banking. These may be useful for all Islamic finance players, including regulators and bankers in introducing policies and products in this area. Social implications This study has the potential to enhance the confidence of the Muslim community, particularly in Islamic banking to support its existence and practices. The impact of such optimism will lead to an increase in demand for Islamic banking products, hence encouraging Islamic banking to sustain and update its activities in line with maqasid al-Shari’ah. Originality/value This paper offers a practical approach as regards to how the maqasid al-Shari’ah can play a significant role in sustaining the Islamic banking industry, particularly in circumstances that are not favorable to its progress. It is indispensable to prevent the Islamic rulings from being diverted in the name of human well-being and to avoid basing them on a literal textual approach. Moreover, as it provides empirical studies on the issue of replication, wa’ad, floating rate and ibra’, the discussion on this subject becomes more practical.

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Sharīʿah issues on taʿwidh in Malaysia

Cited by 5 publications

References 5 publications

How Does Strengthening Islamic Banking Competitiveness? Indonesia Evidence

How Does Strengthening Islamic Banking Competitiveness? Indonesia Evidence

Replacing Conventional Finance with Islamic: A Wisdom from the Qur’an

The role of maqasid al-Shariʿah in applying fiqh muamalat into modern Islamic banking in Malaysia

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