A Framework for Determination of Actual Costs in Islamic Financing Products
DOI:
https://doi.org/10.31436/jif.v5i2.126Abstract
Islamic banking commonly considered as an alternative to the conventional banking system, conducts its business based on certain financial contracts in order to attain profit, while doing away with the element of interest (riba). Among the services offered by Islamic financial institutions (IFI) are financing products and fee-based services to generate profits free from interests and other non-permissible incomes. The fee-based services conducted by Islamic banks may raise some Shari’ah issues such as the practice of charging a fee on services related to loan (qard) facility. Similarly, in financing activities, the IFI also imposes some amount of compensation or related charges in the case of late payment or default events for such financing. This paper aims to discuss the mechanism to determine the calculation of such actual charges and fees from Shari’ah perspective. Nevertheless, this paper does not intend to discuss the issue of “pricing†for Islamic financial products to determine its sales price and profit margin. This paper proposes Shari’ah compliance parameters on the computation of the actual costs for some related financing products offered by Islamic financial institutions.
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References
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Syibir, Usman. (1998). “al-Siyanah al-Madyunat wa Mua‘lijatuha min al-Ta`asur fi al-Fiqh al-Islami†Majallah al-Shar‘iah wa al-Qanun, Jami‘ah al-Imarat, no10.
Uthmani, Taqi (2003). Buhuth fi Qadhaya Fiqhiyyah Mu‘asirah, Damascus: Dar al Qalam.
Zaki Sha`ban, (n.d).“Ta`liq ala bahs hal yuqbal syar`an al hukm ala al-madin al-mumathal bi at ta`widh ala al-dainâ€, Majallah Abhath al-iqtisad al-Islami.
Abd Sattar Abu Ghuddah, (1998) Fatawa Nadawat Al-Barakah Dallah Baraka Group.
Abdul Karim Ismail, Al-‘Umulat Al-Masrafiyyah, Dar Kunuz Ishbiliya, 2009.
Abu Shaybah, Abu Bakr ‘Abd Allah ibn Muhammad. (2006). Musannaf li Ibn Abi Shaybah. Jeddah: Dar al-Qiblah lil Thaqafah al-Islamiyyah..
Al-Bukhari, Abu ‘Abd Allah Muhammad ibn Isma’il (2006), Sahih al-Bukhari. Riyadh: Maktabah al-Rushd.
Al-Buti, Ramadhan. (1981). Muhadarat fi al fiqh Muqaran, Damascus: Dar al Fikr.
Al-Darir. (n.d). “al-infaq ala ilzam al-madin al-musar bita`widhi darar al-mumatholah, Majallah abhas Iqtisad al-Islamiâ€, vol.3.
Al-Dusuqi. (n.d).Hashiah al-Dusuqi ‘ala al-Sharh al-Kabir. Beirut: Dar al-Fikr.
Al-Kasani, Ala‘ al-Din Abu Bakr ibn Mas’ud. (2003).Bada’i‘ al-Sana’i‘ fi Tartib al-Shara’i‘. Beirut: Dar al-Kutub al-Ilmiyyah.
Al-Khafif, ‘Ali. (1997). al-Sharikah fi al-Fiqh al-Islami Buhuth Muqaranah, Beirut: Dar al-Nafa‘is.
Al-Khurashi. Muhammad ibn Abdullah (n.d.) Sharh al-Khurashi ala Mukhtasar Sidi Khalil.
Al-Mani‘, Abdullah Sulayman (n.d), “Matlu al-ghaniyy zulm yahillu irduhu wa uqubatuhu†Majallah Majma` al-Fiqhi, 2nd ed., no.2.
Al-Nawawi (1994). Sharh Muslim bi Sharh al-Nawawi, Cairo: Mu’assasah Qurtabah.
Al-Nisaburi, Muslim ibn Hajjaj. (2006). Sahih Muslim. Riyadh : Dar al-Tayyibah.
Al-Qarafi, Shihab al-Din Abu al-‘Abbas. (1994). Al-Dakhirah fi Furu‘ al-Malikiyyah. Beirut: Dar al-Gharb al-Islami.
Al-Qassar. (2001). “Matlu al-ghaniy zulmâ€, Majallah al-Syariah wa al-Qanun fi Kaherah.
Al-Qurtubi, Abu ‘Abdullah Muhammad ibn Ahmad Al-Ansari. (2006). Al-Jami‘ li Ahkam Al-Qur’an, Beirut: Dar al-Muassasah..
Al-Qurtubi, Abu ‘Abdullah Muhammad ibn Ahmad Al-Ansari. (2006). Al-Jami‘ li Ahkam Al-Qur’an, Beirut: Dar al-Muassasah..
Al-Ramli. (n.d). Nihayah Al-Muhtaj, Beirut: Dar-al-Fikr.
Al-Salus, Ali al-Salus, “Al-Bay` bil taqsit nazarat fi al Tatbiq al-Amaliâ€, Majallah Majma` al-Fiqh al-Islami, no 6.
Al-Suwaidan, Muhammad ibn Walid Abd al-Latif. (2011). Taklifah al-Fi’liyyah fi al-Masarif al-Islamiyyah al-asbab wa al-dhawabitâ€, Dar al-Nafais, Jordan.
Al-Umrani, Abdullah ibn Muhammad. (2006). Al-Manfa`ah Fi Al-Qardh, Beirut: Dar Ibn Jawzi.
Al-Umrani, Abdullah.(2006).Al-`Uqud Al-Maliyah Al-Murakkabah, Dar Kunuz Ishbiliyya.
Al-Zuhayli, Wahbah. (2002). Al-Muamalat al-Maliyyah al-Muasirah. Beirut: Dar al-Fikr.
Bank Negara Malaysia. (2014). Guidelines on Late Payment Charges for Islamic Banking Institutions.
Fatawa Al-Lajnah Al-Da’imah lil-Buhuth Al-Ilmiyyah wal-Ifta’,
Fatawa Shariah Advisory Council of Dubai Islamic Bank, fatwa no. 343.
Fatawa Shariah Advisory Council of Islamic Bank of Jordan Fatwa no (45).
Ibn Abidin, Muhammad Amin ibn ‘Umar ibn Abd ‘Aziz. (2003). Hashiyah Radd al-Muhtar ala al-Durr al-Mukhtar. Beirut: Dar al-Kutub al-‘Ilmiyyah.
Ibn Abd al-Bar, (n.d) Al-Kafi Fi Fiqh Ahl Al-Madinah. Beirut: Dar al-Fikr.
Ibn al-Munzir, Maratib al-Ijma‘ (1998), Beiut: Dar al-Kutub al-‘ilmiyyah.
Ibn Qudamah. Abi Muḥammad ‘Abdullah ibn ´Aḥmad ibn Muḥammad. (1997). Al-Mughni. Riyadh: Dar ‘Alam al-Kutub.
Ibn Shash, (n.d). ‘Aqd al- Jawahir, Beirut: Dar al-Kutub Ilmiyyah.
Ibn Taymiyyah, Taqi al-Din Abu al-‘Abbas Hammad ibn ‘Abd al-Halim ibn Taymiyyah al-Harani (1995). Majmu‘ al-Fatawa. Beirut: Dar al-Kutub al-‘Ilmiyyah.
Khalil ‘Awwad Abu Hashish. (2005). Mahasib al-Takalif Qiyas wa Tahlil, 1st edn, Beirut:Dar al-Wa’il.
Majallah Majma` Fiqh Islami, Jeddah no.3, vol. 1.
Muhammad al-Tabtabaie, (2006). “Mabda` al-Ta`widh wa al-gharamah al-maliyyah fi muwajihah mumatholah al-duyun fi al-mali al-islami†Nadwah al-Alamiyah li Ulama` al-Syariah.
Muhammad Zaki (1990).“ Matlu al-madin hal yulzim bi al ta`widhâ€, Majallah Abhath al-Iqtisad al-Islami.
Mutawi` al-Said. (2009). “al Tatawur al-Tarikhi Li nuzumi Muhasabah Takalifâ€. Jamiah al-Azhar, Kuliyyah al-Tijarah.
Nazih Hammad (1991). “al-Mu‘addiyat al-syar‘iyyah li hamli al-madin al-mumathol ala al-wafa†Majallah Abhas Iqtisad al-Islamiâ€
Shariah Resolutions on Murabaha, Dallah al Barakah, (2010).
Shariah Resolutions of Shariah Advisory Council of al-Rajhi Bank, (2010).
Syibir, Usman. (1998). “al-Siyanah al-Madyunat wa Mua‘lijatuha min al-Ta`asur fi al-Fiqh al-Islami†Majallah al-Shar‘iah wa al-Qanun, Jami‘ah al-Imarat, no10.
Uthmani, Taqi (2003). Buhuth fi Qadhaya Fiqhiyyah Mu‘asirah, Damascus: Dar al Qalam.
Zaki Sha`ban, (n.d).“Ta`liq ala bahs hal yuqbal syar`an al hukm ala al-madin al-mumathal bi at ta`widh ala al-dainâ€, Majallah Abhath al-iqtisad al-Islami.
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Published
2016-11-07
How to Cite
Mohd Nor, A., & Haron, M. N. (2016). A Framework for Determination of Actual Costs in Islamic Financing Products. Journal of Islamic Finance, 5(2), 037–052. https://doi.org/10.31436/jif.v5i2.126
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