The possibility of application of salam in Malaysian Islamic banking system

Purpose – This research aims to explore the theoretical nature of salam contract in depth, the extent of its use in the banking arena of Malaysia and to test the theoretical feasibility of its future application by the Islamic banks in Malaysia by suggesting an Islamic banking product structure ba...

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Main Authors:	Muneeza, Aishath, Nik Yusuf, Nik Nurul Atiqah, Hassan, Rusni
Format:	Article
Language:	English
Published:	Emerald Group Publishing Limited 2011
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/1/The_possibility%5B1%5D.pdf

id	iium-15283
recordtype	eprints
spelling	iium-152832012-09-20T05:45:15Z http://irep.iium.edu.my/15283/ The possibility of application of salam in Malaysian Islamic banking system Muneeza, Aishath Nik Yusuf, Nik Nurul Atiqah Hassan, Rusni HG1501 Banking Purpose – This research aims to explore the theoretical nature of salam contract in depth, the extent of its use in the banking arena of Malaysia and to test the theoretical feasibility of its future application by the Islamic banks in Malaysia by suggesting an Islamic banking product structure based on salam contract. Design/methodology/approach – This is a legal exploratory study primarily focused on library research. Findings – Salam contract is more susceptible to risks than the rest of the Islamic commercial contracts used by the Islamic banks in Malaysia and none of the Islamic banks in the country utilize this type of contract as a mode of financing. However, the research indicates that a feasible banking product based on salam contract could be formulated to help poor farmers in the country. To prove this a new model product based on salam contract to help farmers is created by the authors and the pros and cons of the product with the risk mitigating ways are explored. It is found that theoretically, this product is workable. Originality/value – This research will complement the knowledge based on practical applicability of salam and is targeted to the Islamic financial Institutions in Malaysia, who are the prospective beneficiaries. Emerald Group Publishing Limited 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/15283/1/The_possibility%5B1%5D.pdf Muneeza, Aishath and Nik Yusuf, Nik Nurul Atiqah and Hassan, Rusni (2011) The possibility of application of salam in Malaysian Islamic banking system. Humanomics, 27 (2). pp. 138-147. ISSN 0828-8666 http://www.emeraldinsight.com/journals.htm?issn=0828-8666&volume=27&issue=2 10.1108/08288661111135135
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Muneeza, Aishath Nik Yusuf, Nik Nurul Atiqah Hassan, Rusni The possibility of application of salam in Malaysian Islamic banking system
description	Purpose – This research aims to explore the theoretical nature of salam contract in depth, the extent of its use in the banking arena of Malaysia and to test the theoretical feasibility of its future application by the Islamic banks in Malaysia by suggesting an Islamic banking product structure based on salam contract. Design/methodology/approach – This is a legal exploratory study primarily focused on library research. Findings – Salam contract is more susceptible to risks than the rest of the Islamic commercial contracts used by the Islamic banks in Malaysia and none of the Islamic banks in the country utilize this type of contract as a mode of financing. However, the research indicates that a feasible banking product based on salam contract could be formulated to help poor farmers in the country. To prove this a new model product based on salam contract to help farmers is created by the authors and the pros and cons of the product with the risk mitigating ways are explored. It is found that theoretically, this product is workable. Originality/value – This research will complement the knowledge based on practical applicability of salam and is targeted to the Islamic financial Institutions in Malaysia, who are the prospective beneficiaries.
format	Article
author	Muneeza, Aishath Nik Yusuf, Nik Nurul Atiqah Hassan, Rusni
author_facet	Muneeza, Aishath Nik Yusuf, Nik Nurul Atiqah Hassan, Rusni
author_sort	Muneeza, Aishath
title	The possibility of application of salam in Malaysian Islamic banking system
title_short	The possibility of application of salam in Malaysian Islamic banking system
title_full	The possibility of application of salam in Malaysian Islamic banking system
title_fullStr	The possibility of application of salam in Malaysian Islamic banking system
title_full_unstemmed	The possibility of application of salam in Malaysian Islamic banking system
title_sort	possibility of application of salam in malaysian islamic banking system
publisher	Emerald Group Publishing Limited
publishDate	2011
url	http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/ http://irep.iium.edu.my/15283/1/The_possibility%5B1%5D.pdf
first_indexed	2023-09-18T20:24:20Z
last_indexed	2023-09-18T20:24:20Z
_version_	1777408315506032640

The possibility of application of salam in Malaysian Islamic banking system

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