Issues in the application of Murabahah sale in banking: financing consumer goods and trade

A study of the procedural aspects of Murabahah would reveal that its proper implementation in a financing context is challenging. Murabahah as practised in banking is a trading instrument in its original layout that has been adapted for financing purposes. Due to the forced nature of the application...

Full description

Bibliographic Details
Main Author:	Sadique, Muhammad Abdurrahman
Format:	Article
Language:	English
Published:	Global Academic Excellence 2018
Subjects:	HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt
Online Access:	http://irep.iium.edu.my/68540/ http://irep.iium.edu.my/68540/ http://irep.iium.edu.my/68540/1/IJAFB-2018-15-12-02.pdf

id	iium-68540
recordtype	eprints
spelling	iium-685402019-07-11T01:47:31Z http://irep.iium.edu.my/68540/ Issues in the application of Murabahah sale in banking: financing consumer goods and trade Sadique, Muhammad Abdurrahman HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt A study of the procedural aspects of Murabahah would reveal that its proper implementation in a financing context is challenging. Murabahah as practised in banking is a trading instrument in its original layout that has been adapted for financing purposes. Due to the forced nature of the application of Murabahah in banking, financing on the basis of Murabahah involves numerous conditions, laxity in the observance of which may make the transaction invalid from an Islamic legal perspective. In order to overcome issues arising in Murabahah based financing, implementation of equity-based modes such as Musharakah should be attempted where possible, such as in the context of trade financing. Murabahah is commonly used to finance the purchase of assets in a variety of forms, including financing consumer items as well as in trade financing, through local purchase as well as import. The current paper analyses important aspects involved in the application of Murabahah in the above areas, scrutinising practical aspects that are required to be carefully observed for the validity of the procedure in shari‘ah. Global Academic Excellence 2018-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/68540/1/IJAFB-2018-15-12-02.pdf Sadique, Muhammad Abdurrahman (2018) Issues in the application of Murabahah sale in banking: financing consumer goods and trade. International Journal of Accounting, Finance and Business, 3 (15). pp. 13-24. E-ISSN 0128-1844 http://www.ijafb.com/PDF/IJAFB-2018-15-12-02.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt
spellingShingle	HG3368 Islamic Banking and Finance KBP639 Muʻāmalāt Sadique, Muhammad Abdurrahman Issues in the application of Murabahah sale in banking: financing consumer goods and trade
description	A study of the procedural aspects of Murabahah would reveal that its proper implementation in a financing context is challenging. Murabahah as practised in banking is a trading instrument in its original layout that has been adapted for financing purposes. Due to the forced nature of the application of Murabahah in banking, financing on the basis of Murabahah involves numerous conditions, laxity in the observance of which may make the transaction invalid from an Islamic legal perspective. In order to overcome issues arising in Murabahah based financing, implementation of equity-based modes such as Musharakah should be attempted where possible, such as in the context of trade financing. Murabahah is commonly used to finance the purchase of assets in a variety of forms, including financing consumer items as well as in trade financing, through local purchase as well as import. The current paper analyses important aspects involved in the application of Murabahah in the above areas, scrutinising practical aspects that are required to be carefully observed for the validity of the procedure in shari‘ah.
format	Article
author	Sadique, Muhammad Abdurrahman
author_facet	Sadique, Muhammad Abdurrahman
author_sort	Sadique, Muhammad Abdurrahman
title	Issues in the application of Murabahah sale in banking: financing consumer goods and trade
title_short	Issues in the application of Murabahah sale in banking: financing consumer goods and trade
title_full	Issues in the application of Murabahah sale in banking: financing consumer goods and trade
title_fullStr	Issues in the application of Murabahah sale in banking: financing consumer goods and trade
title_full_unstemmed	Issues in the application of Murabahah sale in banking: financing consumer goods and trade
title_sort	issues in the application of murabahah sale in banking: financing consumer goods and trade
publisher	Global Academic Excellence
publishDate	2018
url	http://irep.iium.edu.my/68540/ http://irep.iium.edu.my/68540/ http://irep.iium.edu.my/68540/1/IJAFB-2018-15-12-02.pdf
first_indexed	2023-09-18T21:37:16Z
last_indexed	2023-09-18T21:37:16Z
_version_	1777412904361918464

Issues in the application of Murabahah sale in banking: financing consumer goods and trade

Similar Items