The ʿUrf of Hibah on Deposits: An Analysis in the Light of New Trends in Islamic Financial Industry in Malaysia
عرف الهبة على الودائع: دراسة تحليلية في ضوء الاتجاهات الجديدة في الصناعة المالية الإسلامية في ماليزيا
DOI:
https://doi.org/10.31436/ijfus.v5i1.228Keywords:
ʿUrf, Hibah, Wadīʿah, Islamic FinanceAbstract
This paper explores the role of ʿurf (custom) in Islamic finance, particularly when it becomes fāsid (invalid). While ʿurf is among the Sharīʿah sources in muʿāmalāt (commercial activities), some of the cases may need to be reviewed. Based on library research, the findings of this study reveal the roles of ʿurf in Islamic finance as follows: (i) interpreting rulings on Sharīʿah texts; (ii) establishing rulings in areas that have not been clarified by Sharīʿah; and (iii) reconsidering the change of financial practices. As for the case of hibah, it is known that BNM has issued a special regulation to reconsider the practice of hibah in wadīʿah among Islamic banks to avoid the element of ʿurf fāsid on that matter. This approach has been followed by Tabung Haji by replacing its wadīʿah with wakālah. While this study may be considered as a conceptual paper, it still provides an analysis on the real practice of hibah on Islamic deposit in Malaysia.
Downloads
Metrics
References
Ab Rahman, A. (2009). Exploring Shari`ah Views on the Practice of Takaful Company Reinsuring With Reinsurance Company. In ISRA Shari’ah Conference on Takaful.
Abū Zahrah, M. (1958). Uṣūl al-Fiqh. Cairo: Dār al-Fikr al-ʿArabi.
Al-Qarḍāwī, Y. (2010). Al-Fatāwa al-Shāzah. Cairo: Dār al-Shuruq.
Al-Shātibī, I. (2004). Al-Muwāfaqāt fĪ Usūl al-Sharīʿah (ʿAbdullah Al-Darraz, ed.). Beirut: Dār al-Kutub al-ʿIlmiyah.
Al-Zaidan, A. al-K. (1968). Al-Madkhal li al-Dirāsat al-Shari’ah al-Islamiyyah. Alexandria: Dār ʿUmar al-Khaṭab.
Al-Zaidān, ʿAbd al-Karīm. (1986). Al-Wajīz fī Uṣūl al-Fiqh. Beirut: Muassasah Quzṭubah.
Al-Zuhaili, W. (2006). Fiqh al-Islami wa Adillatuhu. Damascus: Dār al-Fikr.
Bello, S. A. A., Yasin, N. M., Hassan, R., & Yazid, Z. K. M. (2015). Al-’Urf and Its Applicability in Islamic Deposit Products. American Journal of Economics, Finance and Management, 1(2), 35–42. Retrieved from http://irep.iium.edu.my/47015/
Bello, S., & Hassan, R. (2013). Application of ‘Urf in Islamic and Conventional Bank. Journal of Arts and Humanities, 2(4), 62–72.
BNM. (2010). Shariah Resolution in Islamic Finance. In Bank Negara Malaysia.
Che Abdullah, A. S., & Ab Ghani, A. M. (2014). ’Urf dan Justifikasinya dalam Analisis Hukum Fiqh al-Mu’amalat. Shariah Journal, 16(2).
Dusuki, A. W., & Abdullah, N. (2011). Fundamentals of Islamic Banking. Kuala Lumpur: IBFIM.
Hasan, A. (2003). An Introduction to Collective Ijtihad (Ijtihad Jama’i): Concept and Applications. American Journal of Islamic Social Sciences, 20(2), 26–49.
Hasbullah, M., & Mahad Musa, Z. (2018). Konsep ’Uruf Menurut Pandangan Syarak: Sorotan Ringkas dalam Fiqh Muamalat. In Isu-isu semasa Islam & Sains. Retrieved from https://www.researchgate.net/publication/323078370_KONSEP_’URUF_MENURUT_PANDANGAN_SYARAK_SOROTAN_RINGKAS_DALAM_FIQH_MUAMALAT
Hassan, R., & Mohamad Zaizi, N. A. (2020). The Concept and Application of Hibah As a Financial Instrument From the Malaysian Legal Perspective: an Analysis. IIUM Law Journal, 28(1), 227–252. https://doi.org/10.31436/iiumlj.v28i1.498
Ibn al-Qayyīm, M. (2006). ʿIlām al-Muwāqīʿin ʿan Rabbi al-ʿĀlamīn (I. Al-Dīn, ed.). Cairo: Dār al-Hadīth.
Ibn Kathīr, I. (2008). Tafsīr al-Qurān al-ʿAẓīm. Beirut: Muassasāh al-Risālah al-Nashīrun.
Ishak, M. S. I. (2020). Maqasid al-Shari’ah in Islamic Finance: Theory and Application. Kuala Terengganu: Penerbit UniSZA.
Ismail, A. G., Nik Abdul Ghani, N. A. R., & Mat Zain, M. N. (2016). Tawarruq time deposit with wakalah principle: an option that triggers new issues. International Journal of Islamic and Middle Eastern Finance and Management, 9(3), 388–396. https://doi.org/10.1108/IMEFM-05-2014-0048
Ismail, A., & Rahman, M. H. (2013). Islamic Legal Maxims: Essentials and Applications. Kuala Lumpur: IBFIM.
ISRA. (2010). Islamic Financial System: Principles & Operations. Kuala Lumpur: ISRA.
Kamali, M. H. (2016). Principles of Islamic Jurisprudence (Vol. 15). Retrieved from http://www.jstor.org/stable/1051529?origin=crossref
Lahsasna, A. (2013). Maqāṣid al-Sharīʿah in Islamic Finance. Kuala Lumpur: IBFIM.
Laldin, M. A., Bouheraoua, S., Ansary, R., Abdul Khir, M. F., Mahbubi, A., & Mustafa, M. M. (2013). Islamic Legal Maxims & Their Application in Islamic Finance. Kuala Lumpur: ISRA.
Meera, A. K. M., & Larbani, M. (2006). Part I: Seigniorage of Fiat Money and the Maqasid al-Shari’ah: the Unattainableness of the Maqasid. Humanomics, 22(1), 17–33.
Rahman, M. H. (2018). Mudarabah and its Applications in Islamic Finance: An Analysis. Asian Journal of Research in Banking and Finance, 8(6), 33. https://doi.org/10.5958/2249-7323.2018.00042.1
Shibīr, M. (2007). Al-Muʿāmalāt al-Mālīah al-Muʿāṣiroh fī al-Fiqh al-Islamī. Amman: Dār al-Nafāis.
Suhaini Abdul Majid, M., Zuraina Mir Ahmad Talaat, A., Zaid Zulkifli, M., & Shaiza Mir Ahmad Talaat, N. (2016). Tabung Haji Malaysia as a World Role Model of Islamic Management Institutions. International Journal of Business and Management Invention ISSN, 5(11), 44–55. Retrieved from www.ijbmi.org
Tabung Haji. (2019). Soalan Lazim Wakalah. Retrieved January 12, 2020, from https://www.tabunghaji.gov.my/ms/soalan-lazim-wakalah
Tuan Badrul Hisyam, T. S. (2018). Hibah of Tabung Haji Deposit Account : the Implication of Its. 15(June), 1–6.
Umar A. Oseni, & Noor Suhaida Kasri. (2016). The Application of Hibah in the Islamic Financial Services Industry in Malaysia : Towards A Sharīʿah-Oriented Legal Framework. ISRA Research Paper, (91).
Zakariyah, L. (2012). Custom and Society in Islamic Criminal Law: A Critical Appraisal of the Maxim “al-Adah Muhakkamah” (Custom is Authoritative) and its Sisters in Islamic Legal Procedures. Arab Law Quarterly, 26, 75–97.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The IIUM journal follows the open access policy.
Consent to publish: The Author(s) agree to publish their articles with IIUM Press.
Declaration: The Author(s) declare that the article has not been published before in any form and that it is not concurrently submitted to another publication, and also that it does not infringe on anyone’s copyright. The Author(s) holds the IIUM Press and Editors of the journal harmless against all copyright claims.
Transfer of copyright: The Author(s) hereby agree to transfer the copyright of the article to IIUM Press, which shall have the exclusive and unlimited right to publish the article in any form, including in electronic media. However, the Author(s) will reserve the right to reproduce the article for educational and scientific purposes provided that the written consent of the Publisher is obtained. For the article with more than one author, the corresponding author confirms that he/she is authorized by his/her co-author(s) to grant this transfer of copyright.
