Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications

Despite of its recognition in its basic form by several contemporary bodies of Islamic scholars, different types of tawarruq (monetization) offered by various Islamic banks remain a heavily discussed issue among scholars in the field. The basic objection to such modes is that the explicit aim being...

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Main Author:	Sadique, Muhammad Abdurrahman
Format:	Article
Language:	English
Published:	Serials Publications (P) Ltd, New Delhi 2019
Subjects:	HG178 Liquidity HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt
Online Access:	http://irep.iium.edu.my/76438/ http://irep.iium.edu.my/76438/1/JILR%2015-1%20jun19.pdf

id	iium-76438
recordtype	eprints
spelling	iium-764382019-12-19T08:55:41Z http://irep.iium.edu.my/76438/ Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications Sadique, Muhammad Abdurrahman HG178 Liquidity HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt Despite of its recognition in its basic form by several contemporary bodies of Islamic scholars, different types of tawarruq (monetization) offered by various Islamic banks remain a heavily discussed issue among scholars in the field. The basic objection to such modes is that the explicit aim being the obtaining of cash against undertaking a future debt for a higher amount, it could insinuate a riba based relationship, the transaction only acting as an unessential formality. The guidelines provided purport to ensure that the structure remains a valid trading mechanism by ensuring the presence of the vital ingredients common to all sales and purchases, especially that the buyer becomes the lawful owner of an identified asset fully entitled and able to utilize it in any way he pleases. The adverse perception coordinated tawarruq could generate regarding the reality of Islamic banking should not be underestimated. Relevant controls should be adopted so that the application of legitimate modes of financing advocated by Shari‘ah such as partnership and investment are not pushed even further away from realization by the widespread adoption of coordinated tawarruq. Serials Publications (P) Ltd, New Delhi 2019-06-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/76438/1/JILR%2015-1%20jun19.pdf Sadique, Muhammad Abdurrahman (2019) Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications. Journal of Islamic Law Review, 15 (1). pp. 81-101. ISSN 0973-2918
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG178 Liquidity HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt
spellingShingle	HG178 Liquidity HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt Sadique, Muhammad Abdurrahman Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
description	Despite of its recognition in its basic form by several contemporary bodies of Islamic scholars, different types of tawarruq (monetization) offered by various Islamic banks remain a heavily discussed issue among scholars in the field. The basic objection to such modes is that the explicit aim being the obtaining of cash against undertaking a future debt for a higher amount, it could insinuate a riba based relationship, the transaction only acting as an unessential formality. The guidelines provided purport to ensure that the structure remains a valid trading mechanism by ensuring the presence of the vital ingredients common to all sales and purchases, especially that the buyer becomes the lawful owner of an identified asset fully entitled and able to utilize it in any way he pleases. The adverse perception coordinated tawarruq could generate regarding the reality of Islamic banking should not be underestimated. Relevant controls should be adopted so that the application of legitimate modes of financing advocated by Shari‘ah such as partnership and investment are not pushed even further away from realization by the widespread adoption of coordinated tawarruq.
format	Article
author	Sadique, Muhammad Abdurrahman
author_facet	Sadique, Muhammad Abdurrahman
author_sort	Sadique, Muhammad Abdurrahman
title	Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
title_short	Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
title_full	Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
title_fullStr	Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
title_full_unstemmed	Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
title_sort	revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications
publisher	Serials Publications (P) Ltd, New Delhi
publishDate	2019
url	http://irep.iium.edu.my/76438/ http://irep.iium.edu.my/76438/1/JILR%2015-1%20jun19.pdf
first_indexed	2023-09-18T21:48:00Z
last_indexed	2023-09-18T21:48:00Z
_version_	1777413579701485568

Revisiting the use of tawarruq as a means for liquidity: assessing fundamental concepts and prevalent applications

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