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1 – 10 of 262Lokmanulhakim Hussain and Mohammad Mahbubi Ali
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…
Abstract
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.
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This study aims to examine a distinctive loan contract widely practiced in a Muslim society.
Abstract
Purpose
This study aims to examine a distinctive loan contract widely practiced in a Muslim society.
Design/methodology/approach
This research adopts a qualitative research approach. The study was divided into two main stages. Stage I research relied on documentary analysis of pagang gadai contracts. Hence, Stage II research was an in-depth study in a selected nagari, adopting an ethnography approach. The study was conducted in the district of Tanah Datar, West Sumatera, from 2020 to 2023.
Findings
The findings of this study show that the distinctive mode of contact breaks some basic rules of Islamic finance (the practice contains riba and gharar). The practice however is prevalent in the society studied due to the influence of the customary law namely the communal ownership of lands. The practice brings impacts on the society both positives and negatives.
Research limitations/implications
This study focuses on the traditional mode of pagang gadai contract, which involves the transfer of right to cultivate productive agricultural lands for an exchange of loan measured in gold measurement system and excludes other modes of pagang gadai.
Practical implications
Revision(s) of the contract mode is an urgent matter if the society to be rescued from practicing this type of contract that contains element of exploitation and oppression.
Social implications
The revision(s) is needed if the society wants to follow the teaching of Islam comprehensively, as claimed in the philosophy adopted.
Originality/value
To the best of the author’s knowledge, this is the first study on pagang gadai that focuses on impacts of the practice on the society studied.
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The claimants in these proceedings were a Mr Patrick Mahon and Mr Andrew Kent. The Defendants were partners in the Swiss Bank of Rahn & Bodmer. At the time in which the events…
Abstract
The claimants in these proceedings were a Mr Patrick Mahon and Mr Andrew Kent. The Defendants were partners in the Swiss Bank of Rahn & Bodmer. At the time in which the events giving rise to these proceedings occurred they were respectively, managing director and corporate development manager of TC Coombs, a London‐based firm of stockbrokers over which, at that time, the Securities Association (TSA) had regulatory jurisdiction. The Securities Association subsequently merged with the Association of Futures Brokers and Dealers to become the Securities and Futures Authority (SFA). One of TC Coombs' clients, a Mr Johnson, was under investigation by the Serious Fraud Office (SFO) in early 1990. Mr Johnson had been involved in a complex transaction which involved a meeting between him, Mr Kent and Dr Rhan from the Swiss Bank at the bank's offices. Unsuccessful criminal proceedings centred around that transaction were brought against the claimants but the judge in those proceedings ruled that the claimants had no case to answer.
This study aims to explore how informal pawnbrokers and informal pawners interpret the existence of the informal pawnshop in the traditional market in Surakarta, Indonesia, with…
Abstract
Purpose
This study aims to explore how informal pawnbrokers and informal pawners interpret the existence of the informal pawnshop in the traditional market in Surakarta, Indonesia, with the main focus to determine the applicability of informal pawnshop development model.
Design/methodology/approach
The research used the qualitative method with the phenomenological approach using interview method to fully comprehend the informants’ views regarding the informal pawnshop existence in traditional markets in Surakarta, Indonesia. The applicability of informal pawnshop development model is required for Muslim market vendors. Charitable institutions shall participate in the development of the model by empowering (zakat, infaq, shadaqah and waqf) funds to help Muslims vendors in the traditional markets for additional capital in accordance with Islamic laws for a pawnshop.
Findings
The result of the research shows that the existence of informal pawning in the traditional markets is difficult to avoid as both informal pawnbrokers and informal pawners need one another. Most vendors in the traditional markets are Muslims. Islam teaches that loan interest is categorized as forbidden riba. Meanwhile, in the informal pawning practices, the informal pawnbrokers charge loan interest to the informal pawners.
Originality/value
The objective of this study is to investigate to what extent the Islamic pawn shops motivated the people through interest-free system. However, in past, tradition markets facilitate the people, but they charged a huge against it with interest (riba).
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Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over…
Abstract
Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in establishing institutional framework for consumer protection, entrusting an agency with multifarious tasks may not be the best and effective way in handling consumer protection issues. Thus, this chapter attempts to explore the new paradigm of hisbah as a consumer protection institution in Malaysia with a special reference to the Islamic consumer credit industry. While utilising the doctrinal legal research methodology, relevant sources of law have been examined and analysed. This research finds that the classical hisbah institution provides a good reference point in establishing regulatory agency and dispute management body. Nevertheless, some modifications are required to remain relevant especially in terms of specialisation of role and function. Likewise, it is viewed that adjustment of the hisbah institution is also necessary regarding the characteristic of the muhtasib (ombudsman).
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Budi Sukardi, Novia Rachmadani Wijayanti and Fachrurazi Fachrurazi
The purpose of this study is to reveal empirical facts that literacy and marketing strategies effectively impact people using Sharia pawn products during the COVID-19 pandemic…
Abstract
Purpose
The purpose of this study is to reveal empirical facts that literacy and marketing strategies effectively impact people using Sharia pawn products during the COVID-19 pandemic because of the pressure of capital needs and financial difficulties.
Design/methodology/approach
This study used an exploratory qualitative research approach through semi-structured interviews with six partners of different productive ages and social, economic and educational backgrounds. After data reduction, presentation, description and validation, this paper develops the theory and presents it as a qualitative thematic analysis.
Findings
The findings of this study revealed that those who had socialised Sharia pawnshops had a low literacy level. Nonetheless, the socialisation of Sharia pawnshops increases literacy and public understanding of pawnshop products in Sharia pawnshops. This issue arises because of the COVID-19 pandemic, which makes it impossible for Sharia pawnshops to hold an event or socialise.
Originality/value
The authenticity of this study proves that literacy and marketing strategies can increase public awareness of Sharia pawn products during the COVID-19 pandemic.
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Money laundering is agreed to be a terrible crime. Government officials and their allies in the press seem on almost a monthly basis to demand new powers to deal with this menace…
Abstract
Money laundering is agreed to be a terrible crime. Government officials and their allies in the press seem on almost a monthly basis to demand new powers to deal with this menace. Exactly what is the crime?
Brooke LJ, Mantell LJ and Laws LJ
The factual background to this appeal was given in Vol.8, No.1 Journal of Financial Regulation and Compliance when the judgment at first instance, from which this appeal by the…
Abstract
The factual background to this appeal was given in Vol.8, No.1 Journal of Financial Regulation and Compliance when the judgment at first instance, from which this appeal by the Defendants was brought, was considered and analysed.
The evolution of bar code standards is briefly discussed. The two standards most frequently adopted by libraries, Code‐A‐Bar and CODE 39, are described in detail. The format of…
Abstract
The evolution of bar code standards is briefly discussed. The two standards most frequently adopted by libraries, Code‐A‐Bar and CODE 39, are described in detail. The format of the codes, as used in many library applications, is illustrated. Definitions of terminology employed in the article are appended.