Operationalizing tawarruq by Islamic banks in Malaysia: issues, challenges and way forward
Offering viable and competitive Islamic Finance products by banking institutions could be regarded as a crucial roadmap in pursuing and achieving the Sustainable Development Goals (SDGs). Such initiatives strengthen the role of Islamic finance in uplifting financial prosperity, stability and grow...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
International Research Centre of Islamic Economics and Finance (IRCIEF)
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/67128/ http://irep.iium.edu.my/67128/ http://irep.iium.edu.my/67128/1/67128_Operationalizing%20Tawarruq%20By%20Islamic%20Banks.pdf |
| Summary: | Offering viable and competitive Islamic Finance products by banking institutions could be regarded
as a crucial roadmap in pursuing and achieving the Sustainable Development Goals (SDGs). Such
initiatives strengthen the role of Islamic finance in uplifting financial prosperity, stability and
growth. Tawarruq is one of the Islamic finance liquidity providing schemes which is commonly
utilized in virtually every country that practices Islamic finance. This research examines the issues
and challenges of Tawarruq faced by Islamic banks in Malaysia and the way forward of Tawarruq
application. The legality of Tawrruq has been debated by few researchers, which contributes
towards the diverse resolutions and rulings from Islamic nations on the lawfulness of Tawarruq.
This study is carried out based on a qualitative approach whereby resources are obtained from
various secondary sources including journal articles, books and internet websites. Besides, this
paper aims to provide views and verdicts of legal scholars with respect to Tawarruq in the banking
system. This study also provides the literary evidences and sound arguments in reaching towards the
final juristic judgment. |
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