Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman

Islamic personal financing is offered to cater to the needs of personal financing that complies with Shariah. Beginning with the concept of Bay al-Inah, its application has undergone several strong critiques that have prompted the introduction of Tawarruq. Even though this concept is more preferabl...

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Bibliographic Details
Main Author:	Abdul Rahman, Zainor Nasrah
Format:	Thesis
Language:	English
Published:	2014
Subjects:	Personal finance. Financial literacy
Online Access:	http://ir.uitm.edu.my/id/eprint/15789/ http://ir.uitm.edu.my/id/eprint/15789/1/TM_ZAINOR%20NASRAH%20ABDUL%20RAHMAN%20AC%2014_5.PDF

id	uitm-15789
recordtype	eprints
spelling	uitm-157892016-12-17T07:57:05Z http://ir.uitm.edu.my/id/eprint/15789/ Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman Abdul Rahman, Zainor Nasrah Personal finance. Financial literacy Islamic personal financing is offered to cater to the needs of personal financing that complies with Shariah. Beginning with the concept of Bay al-Inah, its application has undergone several strong critiques that have prompted the introduction of Tawarruq. Even though this concept is more preferable than Bay al-Inah, its implementation by industry players has attracted the serious concerns of Shariah scholars in terms of its arrangement. If the arrangement is executed improperly, the contract may be rendered invalid, thus resulting in that it will not comply with Shariah. Hence, this study intends to examine the practice of the Tawarruq arrangement based on the practitioners’ perspective. Also, this study aims to assess whether the current practice of the Tawarruq arrangement has been able to comply with the classical and contemporary Shariah rulings, Bank Negara Malaysia (BNM)’s guidelines and requirements; and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standards. Questionnaires were distributed to the officers of the Malaysian Islamic banks who dealt directly with their customers as well as those of the operations side. The findings have suggested that the Islamic banks have executed the concept in accordance with the requirements stipulated by BNM in the Shariah resolution. However, in discussing the findings in the light of the AAOIFI Shariah Standards, this study have found that there were elements contradicting the standard particularly in appointing an agent for selling back the commodity to the market. In addition, discussion on the findings based on the classical and contemporary Shariah scholars, the arrangement of Tawarruq in the current practice has found the evidences of the Tawarruq Munazzam in its arrangement. Therefore, BNM as the authoritative body should initiate towards a stricter practice while harmonising the practice within the industry players. 2014 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/15789/1/TM_ZAINOR%20NASRAH%20ABDUL%20RAHMAN%20AC%2014_5.PDF Abdul Rahman, Zainor Nasrah (2014) Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Personal finance. Financial literacy
spellingShingle	Personal finance. Financial literacy Abdul Rahman, Zainor Nasrah Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
description	Islamic personal financing is offered to cater to the needs of personal financing that complies with Shariah. Beginning with the concept of Bay al-Inah, its application has undergone several strong critiques that have prompted the introduction of Tawarruq. Even though this concept is more preferable than Bay al-Inah, its implementation by industry players has attracted the serious concerns of Shariah scholars in terms of its arrangement. If the arrangement is executed improperly, the contract may be rendered invalid, thus resulting in that it will not comply with Shariah. Hence, this study intends to examine the practice of the Tawarruq arrangement based on the practitioners’ perspective. Also, this study aims to assess whether the current practice of the Tawarruq arrangement has been able to comply with the classical and contemporary Shariah rulings, Bank Negara Malaysia (BNM)’s guidelines and requirements; and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standards. Questionnaires were distributed to the officers of the Malaysian Islamic banks who dealt directly with their customers as well as those of the operations side. The findings have suggested that the Islamic banks have executed the concept in accordance with the requirements stipulated by BNM in the Shariah resolution. However, in discussing the findings in the light of the AAOIFI Shariah Standards, this study have found that there were elements contradicting the standard particularly in appointing an agent for selling back the commodity to the market. In addition, discussion on the findings based on the classical and contemporary Shariah scholars, the arrangement of Tawarruq in the current practice has found the evidences of the Tawarruq Munazzam in its arrangement. Therefore, BNM as the authoritative body should initiate towards a stricter practice while harmonising the practice within the industry players.
format	Thesis
author	Abdul Rahman, Zainor Nasrah
author_facet	Abdul Rahman, Zainor Nasrah
author_sort	Abdul Rahman, Zainor Nasrah
title	Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
title_short	Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
title_full	Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
title_fullStr	Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
title_full_unstemmed	Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman
title_sort	tawarruq in personal financing: theory and practice / zainor nasrah abdul rahman
publishDate	2014
url	http://ir.uitm.edu.my/id/eprint/15789/ http://ir.uitm.edu.my/id/eprint/15789/1/TM_ZAINOR%20NASRAH%20ABDUL%20RAHMAN%20AC%2014_5.PDF
first_indexed	2023-09-18T22:54:39Z
last_indexed	2023-09-18T22:54:39Z
_version_	1777417772604588032

Tawarruq in personal financing: theory and practice / Zainor Nasrah Abdul Rahman

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