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Tawarruq application in Islamic banking: a review of the literature

Nasrun Mohamad (Department of Shariah and Economics, University of Malaya, Kuala Lumpur, Malaysia)
Asmak Ab Rahman (Department of Shariah and Economics, University of Malaya, Kuala Lumpur, Malaysia)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 11 November 2014

Abstract

Purpose

This paper aims to present the results of a comprehensive literature review with regard to the application of Tawarruq in the Islamic banking system covering the period between 2011 and before. The review aims to synthesize the previous research, capsulize the structural overview inasmuch as future research might be oriented and identify the gaps and direction for future research.

Design/methodology/approach

A range of published and unpublished documents was collated and filtered based on the defined rules to identify the determinants of the writing. The documents were then be classified into few segments in which content analysis was conducted to capsulize the essence of the subject matter described in the literature.

Findings

The analysis demonstrates that most of the studies discussed the fundamental theories which concerning the area of jurisprudence, while a few of them did discuss the application aspect in the banking environment. However, none of the operational process is discussed in-depth, whereas the risk of Shari’ah non-compliance might arise in the detail transaction.

Research limitations/implications

The databases used in the search might not contain all the documents that could be relevant for the review. Furthermore, the defined-rule for document searching and selection excluded the out-of-scope documents that might be relevant.

Originality/value

This paper identifies the gaps that become apparent in the literature in assisting researchers to ascertain the interesting areas as well as the direction for future research.

Keywords

Citation

Mohamad, N. and Ab Rahman, A. (2014), "Tawarruq application in Islamic banking: a review of the literature", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 7 No. 4, pp. 485-501. https://doi.org/10.1108/IMEFM-10-2013-0106

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited