Comparing the concept of Rahn and debenture in Islamic finance perspective

Comparing the concept of Rahn and debenture in Islamic finance perspective

Debenture is one type of security adopted by Islamic bank in Malaysia for commercial and corporate customers. Same as rahn, debenture as security is not a stand-alone product but it is a supporting contract linked to financing contract. This paper aims to compare the concept of rahn and debenture...

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Bibliographic Details
Main Authors: Mohd Sharoni, Syairazi Muhammad Husni, Hassan, Rusni
Format: Conference or Workshop Item
Language:English
Published: International Research Centre of Islamic Economics and Finance (IRCIEF) 2018
Subjects:
BP173.75 Islam and economics
HG3368 Islamic Banking and Finance
HJ1438 Public Finance In Islam
Online Access:http://irep.iium.edu.my/67125/
http://irep.iium.edu.my/67125/
http://irep.iium.edu.my/67125/1/67125_Comparing%20the%20Concept%20of%20Rahn%20and%20Debenture.pdf
id iium-67125
recordtype eprints
spelling iium-671252018-10-29T02:33:15Z http://irep.iium.edu.my/67125/ Comparing the concept of Rahn and debenture in Islamic finance perspective Mohd Sharoni, Syairazi Muhammad Husni Hassan, Rusni BP173.75 Islam and economics HG3368 Islamic Banking and Finance HJ1438 Public Finance In Islam Debenture is one type of security adopted by Islamic bank in Malaysia for commercial and corporate customers. Same as rahn, debenture as security is not a stand-alone product but it is a supporting contract linked to financing contract. This paper aims to compare the concept of rahn and debenture in Islamic finance perspective. This paper adopted qualitative paper that adopts Shariah resolutions of Bank Negara Malaysia (BNM) and Accounting and Auditing Organization of Islamic Financial Institution (AAOIFI) as references. However, this paper does not conduct a specific case from any Islamic bank which only focusing on library research. This paper found that, debenture as security is one type of modern security instrument which is based on rahn contract where the similarity rate between rahn and debenture is 77% (10 out of 13 elements). From the analysis, it shows that AAOIFI Shariah Standard No. (39) on Mortgage and Its Contemporary Applications is more comprehensive than BNM Policy Document of Rahn. Out of 13 Shariah requirements, AAOIFI manage to have clear resolution on 85% (11 requirements) while BNM only highlighted 69% (9 requirements). Therefore, industry player should ensure that product structure and legal documentations of debenture are in compliance with rahn Shariah as highlighted by BNM and AAOIFI. International Research Centre of Islamic Economics and Finance (IRCIEF) 2018 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/67125/1/67125_Comparing%20the%20Concept%20of%20Rahn%20and%20Debenture.pdf Mohd Sharoni, Syairazi Muhammad Husni and Hassan, Rusni (2018) Comparing the concept of Rahn and debenture in Islamic finance perspective. In: 1st Global Conference on Islamic Economics and Finance 2018 (GCIEF 2018), 24th-25th Oct. 2018, Kuala Lumpur. https://ircief.org.my/gcief2018/wp-content/uploads/2018/10/7.-Comparing-the-Concept-of-Rahn-and-Debenture-in-Islamic-Finance-Perspective.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG3368 Islamic Banking and Finance
HJ1438 Public Finance In Islam
spellingShingle BP173.75 Islam and economics
HG3368 Islamic Banking and Finance
HJ1438 Public Finance In Islam
Mohd Sharoni, Syairazi Muhammad Husni
Hassan, Rusni
Comparing the concept of Rahn and debenture in Islamic finance perspective
description Debenture is one type of security adopted by Islamic bank in Malaysia for commercial and corporate customers. Same as rahn, debenture as security is not a stand-alone product but it is a supporting contract linked to financing contract. This paper aims to compare the concept of rahn and debenture in Islamic finance perspective. This paper adopted qualitative paper that adopts Shariah resolutions of Bank Negara Malaysia (BNM) and Accounting and Auditing Organization of Islamic Financial Institution (AAOIFI) as references. However, this paper does not conduct a specific case from any Islamic bank which only focusing on library research. This paper found that, debenture as security is one type of modern security instrument which is based on rahn contract where the similarity rate between rahn and debenture is 77% (10 out of 13 elements). From the analysis, it shows that AAOIFI Shariah Standard No. (39) on Mortgage and Its Contemporary Applications is more comprehensive than BNM Policy Document of Rahn. Out of 13 Shariah requirements, AAOIFI manage to have clear resolution on 85% (11 requirements) while BNM only highlighted 69% (9 requirements). Therefore, industry player should ensure that product structure and legal documentations of debenture are in compliance with rahn Shariah as highlighted by BNM and AAOIFI.
format Conference or Workshop Item
author Mohd Sharoni, Syairazi Muhammad Husni
Hassan, Rusni
author_facet Mohd Sharoni, Syairazi Muhammad Husni
Hassan, Rusni
author_sort Mohd Sharoni, Syairazi Muhammad Husni
title Comparing the concept of Rahn and debenture in Islamic finance perspective
title_short Comparing the concept of Rahn and debenture in Islamic finance perspective
title_full Comparing the concept of Rahn and debenture in Islamic finance perspective
title_fullStr Comparing the concept of Rahn and debenture in Islamic finance perspective
title_full_unstemmed Comparing the concept of Rahn and debenture in Islamic finance perspective
title_sort comparing the concept of rahn and debenture in islamic finance perspective
publisher International Research Centre of Islamic Economics and Finance (IRCIEF)
publishDate 2018
url http://irep.iium.edu.my/67125/
http://irep.iium.edu.my/67125/
http://irep.iium.edu.my/67125/1/67125_Comparing%20the%20Concept%20of%20Rahn%20and%20Debenture.pdf
first_indexed 2023-09-18T21:35:18Z
last_indexed 2023-09-18T21:35:18Z
_version_ 1777412780739002368

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