Issues on Islamic banks’ Nostro accounts

All Islamic banks in Malaysia which involve with the international trade transaction will have to have a Nostro accounts with a conventional correspondent/agent banks in order to make payments through them. The objective of this study is to clarify the issue on the usage of Nostro accounts in con...

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Main Authors:	Syed Alwi, Sharifah Faigah, Ibrahim, Uzaimah, Sawari, Mohd Fuad
Format:	Article
Language:	English
Published:	Universiti Teknologi MARA 2013
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/63317/ http://irep.iium.edu.my/63317/ http://irep.iium.edu.my/63317/1/63317_Issues%20on%20Islamic%20Banks%E2%80%99%20Nostro%20Accounts.pdf

id	iium-63317
recordtype	eprints
spelling	iium-633172018-04-13T00:53:01Z http://irep.iium.edu.my/63317/ Issues on Islamic banks’ Nostro accounts Syed Alwi, Sharifah Faigah Ibrahim, Uzaimah Sawari, Mohd Fuad HG3368 Islamic Banking and Finance All Islamic banks in Malaysia which involve with the international trade transaction will have to have a Nostro accounts with a conventional correspondent/agent banks in order to make payments through them. The objective of this study is to clarify the issue on the usage of Nostro accounts in conventional banks by the Islamic banks where these accounts deal with riba (interest) in their daily transactions from the Shariah perspective. This study adopts the qualitative method as the main research methodology. The information on the involvement of 12 Islamic banks in Malaysia with Nostro accounts in conventional banks is gained from semi-structured interviews conducted with bankers who directly involved with international trade payments. As a result, this study discovered two main issues. First is the issue on the permissibility of the involvement of the Islamic banks with the Nostro accounts. While the second issue is the tendency of some Islamic banks leverage on the conventional parents’ banks Nostro accounts. This study analyzes these issues by determining whether they are in line with Shariah principles. Universiti Teknologi MARA 2013-02-14 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63317/1/63317_Issues%20on%20Islamic%20Banks%E2%80%99%20Nostro%20Accounts.pdf Syed Alwi, Sharifah Faigah and Ibrahim, Uzaimah and Sawari, Mohd Fuad (2013) Issues on Islamic banks’ Nostro accounts. Terengganu International Finance and Economics Journal (TIFEJ), 3 (2). pp. 70-78. ISSN 2232-0539 http://www.myjurnal.my/public/browse-journal-view.php?id=442
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Syed Alwi, Sharifah Faigah Ibrahim, Uzaimah Sawari, Mohd Fuad Issues on Islamic banks’ Nostro accounts
description	All Islamic banks in Malaysia which involve with the international trade transaction will have to have a Nostro accounts with a conventional correspondent/agent banks in order to make payments through them. The objective of this study is to clarify the issue on the usage of Nostro accounts in conventional banks by the Islamic banks where these accounts deal with riba (interest) in their daily transactions from the Shariah perspective. This study adopts the qualitative method as the main research methodology. The information on the involvement of 12 Islamic banks in Malaysia with Nostro accounts in conventional banks is gained from semi-structured interviews conducted with bankers who directly involved with international trade payments. As a result, this study discovered two main issues. First is the issue on the permissibility of the involvement of the Islamic banks with the Nostro accounts. While the second issue is the tendency of some Islamic banks leverage on the conventional parents’ banks Nostro accounts. This study analyzes these issues by determining whether they are in line with Shariah principles.
format	Article
author	Syed Alwi, Sharifah Faigah Ibrahim, Uzaimah Sawari, Mohd Fuad
author_facet	Syed Alwi, Sharifah Faigah Ibrahim, Uzaimah Sawari, Mohd Fuad
author_sort	Syed Alwi, Sharifah Faigah
title	Issues on Islamic banks’ Nostro accounts
title_short	Issues on Islamic banks’ Nostro accounts
title_full	Issues on Islamic banks’ Nostro accounts
title_fullStr	Issues on Islamic banks’ Nostro accounts
title_full_unstemmed	Issues on Islamic banks’ Nostro accounts
title_sort	issues on islamic banks’ nostro accounts
publisher	Universiti Teknologi MARA
publishDate	2013
url	http://irep.iium.edu.my/63317/ http://irep.iium.edu.my/63317/ http://irep.iium.edu.my/63317/1/63317_Issues%20on%20Islamic%20Banks%E2%80%99%20Nostro%20Accounts.pdf
first_indexed	2023-09-18T21:29:48Z
last_indexed	2023-09-18T21:29:48Z
_version_	1777412434592530432

Issues on Islamic banks’ Nostro accounts

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