Guidelines for the Application of Purchase (Bay') and Loan (Salaf) in the Bank Letter of Guarantee
ضوابط تطبيقات بيع وسلف في خطاب الضمان المصرفي
Currently, rapid development in the Islamic finance sector is aimed to fulfill people’s needs. Because of that, Islamic banks need to produce new products and services with combined contracts which do not confine to a single contract. So, this research is made to identify the reasons of prohibition of the combination of purchase contract (bay') and loan contract (salaf) mentioned in a ḥadtīh. One of these reasons is the combination of two contracts in a single transaction that has been abundantly discussed by the scholars in the past and present. A present example of the combined contracts produced by the newly created financial transactions is “Letter of Guarantee,” where the researchers have found that this contract has been formed by combining two contracts in a single transaction, i.e., bay' and salaf. It is, therefore, necessary to understand the mentioned ḥadīth profoundly before its application in the Islamic banks so that it does not contradict the holy Sharī'ah. The researchers use the data collection method for collecting materials related to the subject of the study. They also use the analytical method to analyze the aḥādīth related to the topic, and then investigate the legitimacy of the application of bay' and salaf in the “Letter of Guarantee,” and its juristic adaptation (takyīf fiqhī). An important finding of this research is that the application of bay' and salaf in the “Letter of Guarantee” is permitted, as long as the higher objectives of SharīÑah are considered in it, and there is no involvement with the prohibited things.
Keywords: Purchase and Loan, Letter of Guarantee, Client, Beneficiary, Guarantor
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