Saving and current account in the context of shari‘ah contract

Islamic banking is a new phenomenon that has taken many observers by surprise. There are three types of account which are commonly known in the Islamic Banks. These are: Current Account, Saving Account and Investment account. Moreover, this paper proposed to analysis the Savings and Current Accou...

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Main Authors:	abdul azeez bello, Shafii, Hassan, Rusni
Format:	Article
Language:	English
Published:	OMICS International Journal 2014
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/47009/ http://irep.iium.edu.my/47009/ http://irep.iium.edu.my/47009/1/47009_-_Saving_and_Current_Account.pdf

id	iium-47009
recordtype	eprints
spelling	iium-470092016-07-19T01:52:43Z http://irep.iium.edu.my/47009/ Saving and current account in the context of shari‘ah contract abdul azeez bello, Shafii Hassan, Rusni HG1501 Banking Islamic banking is a new phenomenon that has taken many observers by surprise. There are three types of account which are commonly known in the Islamic Banks. These are: Current Account, Saving Account and Investment account. Moreover, this paper proposed to analysis the Savings and Current Account Deposit in the context of Shari‘ah contract. The Shari‘ah principles applicable to saving account are Al-Wadi‘ah, Mudarabah and Al-Qard Hassan. However, Al- Qard is commonly offered by Islamic banks in the Middle East. The Shari‘ah compliant of current account based on the Al-Wadi‘ah Yad Dhamanah (safe custody) principle which refers to a contract between the owner of funds (account holder) and the bank for safe keeping purposes. This paper claims that deposits from savers are an important source of financial strength for the Islamic banks. They use it to increase their capacity for financing operations and thereby increase profit for the shareholders. In addition, it argued that gifts in wadi‘ah and qard hassan allowed because the excess or expected return is not contractual in nature and the bank is under no obligation to provide a return and return is purely in the nature of gift, whereby, gifts by definition do not constitute ribā. OMICS International Journal 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47009/1/47009_-_Saving_and_Current_Account.pdf abdul azeez bello, Shafii and Hassan, Rusni (2014) Saving and current account in the context of shari‘ah contract. Arabian Journal of Business and Management Review (Nigerian Chapter), 1 (12). pp. 8-17. ISSN 2223-5833 http://www.arabianjbmr.com/pdfs/NG_VOL_1_12/2.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking abdul azeez bello, Shafii Hassan, Rusni Saving and current account in the context of shari‘ah contract
description	Islamic banking is a new phenomenon that has taken many observers by surprise. There are three types of account which are commonly known in the Islamic Banks. These are: Current Account, Saving Account and Investment account. Moreover, this paper proposed to analysis the Savings and Current Account Deposit in the context of Shari‘ah contract. The Shari‘ah principles applicable to saving account are Al-Wadi‘ah, Mudarabah and Al-Qard Hassan. However, Al- Qard is commonly offered by Islamic banks in the Middle East. The Shari‘ah compliant of current account based on the Al-Wadi‘ah Yad Dhamanah (safe custody) principle which refers to a contract between the owner of funds (account holder) and the bank for safe keeping purposes. This paper claims that deposits from savers are an important source of financial strength for the Islamic banks. They use it to increase their capacity for financing operations and thereby increase profit for the shareholders. In addition, it argued that gifts in wadi‘ah and qard hassan allowed because the excess or expected return is not contractual in nature and the bank is under no obligation to provide a return and return is purely in the nature of gift, whereby, gifts by definition do not constitute ribā.
format	Article
author	abdul azeez bello, Shafii Hassan, Rusni
author_facet	abdul azeez bello, Shafii Hassan, Rusni
author_sort	abdul azeez bello, Shafii
title	Saving and current account in the context of shari‘ah contract
title_short	Saving and current account in the context of shari‘ah contract
title_full	Saving and current account in the context of shari‘ah contract
title_fullStr	Saving and current account in the context of shari‘ah contract
title_full_unstemmed	Saving and current account in the context of shari‘ah contract
title_sort	saving and current account in the context of shari‘ah contract
publisher	OMICS International Journal
publishDate	2014
url	http://irep.iium.edu.my/47009/ http://irep.iium.edu.my/47009/ http://irep.iium.edu.my/47009/1/47009_-_Saving_and_Current_Account.pdf
first_indexed	2023-09-18T21:06:54Z
last_indexed	2023-09-18T21:06:54Z
_version_	1777410993468473344

Saving and current account in the context of shari‘ah contract

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