The application of wadi’ah contract by some financial institutions in Malaysia

Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major distinguish features which are: the motive is not profit making only rather see...

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Main Authors:	Ibrahim, Ahmad Basri, Mohd Noor, Azman, Sahrir, Muhammad Sabri
Format:	Conference or Workshop Item
Language:	English
Published:	2012
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/18063/ http://irep.iium.edu.my/18063/ http://irep.iium.edu.my/18063/1/The_Application_of_Wadi%E2%80%98ah_Contract_-_ID_1316.pdf

id	iium-18063
recordtype	eprints
spelling	iium-180632012-04-27T03:42:34Z http://irep.iium.edu.my/18063/ The application of wadi’ah contract by some financial institutions in Malaysia Ibrahim, Ahmad Basri Mohd Noor, Azman Sahrir, Muhammad Sabri HG1501 Banking Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major distinguish features which are: the motive is not profit making only rather seeking the pleasure of Allah’s mercy in the hereafter. The second feature is the use of asset backed-up transactions and profit distribution system as agreed at fore hand. These features manifested in the dealings of the Islamic Financial Institutions (IFIs) established to excute the aims and objectives of Islam and Muslims as the vicegerent of Allah on earth and one who are bound by injunctions in all their transactions. In order to achieve these objectives Islamic banks have moved in an alternative bearing from the conventional banks in practices and brands of products. One of these products is rebranding of the conventional savings account with the Wadi‘ah account. Therefore, this paper aims at explaining the concept of wadi‘ah, the evidences of its legitimacy, conditions, prohibited elements in this transaction, its types and how its application in some financial institutions in Malaysia. Finally, we found out that, modern wadi‘ah took a different shape from the original wadi‘ah. While original wadi‘ah is based on Amanah (turst), contemporary wadi’ah is based on daman (liability) which is more or less loan. 2012-02-21 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/18063/1/The_Application_of_Wadi%E2%80%98ah_Contract_-_ID_1316.pdf Ibrahim, Ahmad Basri and Mohd Noor, Azman and Sahrir, Muhammad Sabri (2012) The application of wadi’ah contract by some financial institutions in Malaysia. In: IIUM Research, Invention and Innovation Exhibition, IRIIE 2012, 21-22 February, 2012., Cultural Activity Centre (CAC) and KAED Gallery, IIUM.. (In Press) http://www.iium.edu.my/irie/sub/author/list_p.php
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 Ibrahim, Ahmad Basri Mohd Noor, Azman Sahrir, Muhammad Sabri The application of wadi’ah contract by some financial institutions in Malaysia
description	Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major distinguish features which are: the motive is not profit making only rather seeking the pleasure of Allah’s mercy in the hereafter. The second feature is the use of asset backed-up transactions and profit distribution system as agreed at fore hand. These features manifested in the dealings of the Islamic Financial Institutions (IFIs) established to excute the aims and objectives of Islam and Muslims as the vicegerent of Allah on earth and one who are bound by injunctions in all their transactions. In order to achieve these objectives Islamic banks have moved in an alternative bearing from the conventional banks in practices and brands of products. One of these products is rebranding of the conventional savings account with the Wadi‘ah account. Therefore, this paper aims at explaining the concept of wadi‘ah, the evidences of its legitimacy, conditions, prohibited elements in this transaction, its types and how its application in some financial institutions in Malaysia. Finally, we found out that, modern wadi‘ah took a different shape from the original wadi‘ah. While original wadi‘ah is based on Amanah (turst), contemporary wadi’ah is based on daman (liability) which is more or less loan.
format	Conference or Workshop Item
author	Ibrahim, Ahmad Basri Mohd Noor, Azman Sahrir, Muhammad Sabri
author_facet	Ibrahim, Ahmad Basri Mohd Noor, Azman Sahrir, Muhammad Sabri
author_sort	Ibrahim, Ahmad Basri
title	The application of wadi’ah contract by some financial institutions in Malaysia
title_short	The application of wadi’ah contract by some financial institutions in Malaysia
title_full	The application of wadi’ah contract by some financial institutions in Malaysia
title_fullStr	The application of wadi’ah contract by some financial institutions in Malaysia
title_full_unstemmed	The application of wadi’ah contract by some financial institutions in Malaysia
title_sort	application of wadi’ah contract by some financial institutions in malaysia
publishDate	2012
url	http://irep.iium.edu.my/18063/ http://irep.iium.edu.my/18063/ http://irep.iium.edu.my/18063/1/The_Application_of_Wadi%E2%80%98ah_Contract_-_ID_1316.pdf
first_indexed	2023-09-18T20:27:02Z
last_indexed	2023-09-18T20:27:02Z
_version_	1777408485866078208

The application of wadi’ah contract by some financial institutions in Malaysia

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