Viability cf implementing direct interest-free credit clearance system in Muslim countries

This study aims to examine the possibilities of implementing direct interest-free credit clearance (DIFCC) system,which is one of the viable alternatives to solve the problems of contemporary currency system. The DIFCC, which is based ona netting system,has been implemented successfully by several c...

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Main Authors:	Jaafar, Syammon, Abdullah, Adam, Hassan, Rusni, Mydin Meera, Ahamed Kameel
Format:	Article
Language:	English
Published:	IIUM Institute of Islamic Banking and Finance (IIiBF). 2016
Subjects:	HG Finance HG201 Money HG3691 Credit
Online Access:	http://irep.iium.edu.my/55734/ http://irep.iium.edu.my/55734/ http://irep.iium.edu.my/55734/1/v12_n3_article8.pdf

id	iium-55734
recordtype	eprints
spelling	iium-557342017-03-07T02:05:28Z http://irep.iium.edu.my/55734/ Viability cf implementing direct interest-free credit clearance system in Muslim countries Jaafar, Syammon Abdullah, Adam Hassan, Rusni Mydin Meera, Ahamed Kameel HG Finance HG201 Money HG3691 Credit This study aims to examine the possibilities of implementing direct interest-free credit clearance (DIFCC) system,which is one of the viable alternatives to solve the problems of contemporary currency system. The DIFCC, which is based ona netting system,has been implemented successfully by several countries in the conventional setting, not to replace the current fiat money system, but rather as a parallel complementary currency. In this system, the distribution of credit as money will not be monopolized by the commercial banks, rather the distribution ison a mutual basis as long as there are products or services that can be offered to others among the members. As such, the system is fairer compared to the fiat money system and is free from the prohibited elements in Islamic finance such as riba, gharar and maysir as it requires exchange of real goods and services. In the context of the Muslim countries, the negative socio-economic effects of using the fiat money will not allow the countries to attain the objectives of the Shari’ah(maqasid al-Shari’ah). This study discuss the viability of implementing the DIFCC model which essentially applies the concepts of muqasah (nett-off) and hiwalah (transfer), apart from assessing the Shari’ah-compliancy of the model to be implemented as an innovative product in Islamic finance. IIUM Institute of Islamic Banking and Finance (IIiBF). 2016-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/55734/1/v12_n3_article8.pdf Jaafar, Syammon and Abdullah, Adam and Hassan, Rusni and Mydin Meera, Ahamed Kameel (2016) Viability cf implementing direct interest-free credit clearance system in Muslim countries. Journal of Islamic Economics, Banking and Finance, 12 (3). pp. 190-215. http://ibtra.com/journal_index.php
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance HG201 Money HG3691 Credit
spellingShingle	HG Finance HG201 Money HG3691 Credit Jaafar, Syammon Abdullah, Adam Hassan, Rusni Mydin Meera, Ahamed Kameel Viability cf implementing direct interest-free credit clearance system in Muslim countries
description	This study aims to examine the possibilities of implementing direct interest-free credit clearance (DIFCC) system,which is one of the viable alternatives to solve the problems of contemporary currency system. The DIFCC, which is based ona netting system,has been implemented successfully by several countries in the conventional setting, not to replace the current fiat money system, but rather as a parallel complementary currency. In this system, the distribution of credit as money will not be monopolized by the commercial banks, rather the distribution ison a mutual basis as long as there are products or services that can be offered to others among the members. As such, the system is fairer compared to the fiat money system and is free from the prohibited elements in Islamic finance such as riba, gharar and maysir as it requires exchange of real goods and services. In the context of the Muslim countries, the negative socio-economic effects of using the fiat money will not allow the countries to attain the objectives of the Shari’ah(maqasid al-Shari’ah). This study discuss the viability of implementing the DIFCC model which essentially applies the concepts of muqasah (nett-off) and hiwalah (transfer), apart from assessing the Shari’ah-compliancy of the model to be implemented as an innovative product in Islamic finance.
format	Article
author	Jaafar, Syammon Abdullah, Adam Hassan, Rusni Mydin Meera, Ahamed Kameel
author_facet	Jaafar, Syammon Abdullah, Adam Hassan, Rusni Mydin Meera, Ahamed Kameel
author_sort	Jaafar, Syammon
title	Viability cf implementing direct interest-free credit clearance system in Muslim countries
title_short	Viability cf implementing direct interest-free credit clearance system in Muslim countries
title_full	Viability cf implementing direct interest-free credit clearance system in Muslim countries
title_fullStr	Viability cf implementing direct interest-free credit clearance system in Muslim countries
title_full_unstemmed	Viability cf implementing direct interest-free credit clearance system in Muslim countries
title_sort	viability cf implementing direct interest-free credit clearance system in muslim countries
publisher	IIUM Institute of Islamic Banking and Finance (IIiBF).
publishDate	2016
url	http://irep.iium.edu.my/55734/ http://irep.iium.edu.my/55734/ http://irep.iium.edu.my/55734/1/v12_n3_article8.pdf
first_indexed	2023-09-18T21:18:43Z
last_indexed	2023-09-18T21:18:43Z
_version_	1777411736770445312

Viability cf implementing direct interest-free credit clearance system in Muslim countries

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