@article{Faakihin_Hassan_2018, title={Gap Analysis Between the Rahn Exposure Draft by Bank Negara Malaysia and Rahn Practice in Islamic Pawn Broking Institutions}, volume={7}, url={https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/285}, DOI={10.31436/jif.v7i2.285}, abstractNote={<p>This paper aims to analyse the existing structure of <em>rahn</em>-based Islamic microcredit lending facilities by Bank Kerjasama Rakyat and Pos Malaysia, the two institution with the largest number of <em>Rahn</em> branches in Malaysia, in comparison with the Exposure Draft on <em>Shari’ah</em> Requirements and Optional Practices of <em>Rahn</em> issued by Bank Negara Malaysia (BNM). The Exposure Draft delineates the <em>Shari’ah</em> requirements and Optional Practices pertaining to <em>Rahn</em> such that the regulatory body seeks feedbacks and alternative proposals from stakeholders to enhance the current practise of <em>rahn</em>. The main purpose of this paper is to investigate whether the practices of Bank Kerjasama Rakyat and Pos Malaysia comply with the proposed policy document by BNM with regard to the <em>Shari’ah</em> aspects. This paper employs a qualitative research method based on the data gatherred from secondary sources from the literature and other academic materials including the <em>Rahn</em> exposure draft, in order to evaluate the theoretical and practical aspects of <em>rahn</em> in Islamic microcredit financing. The findings show that in general, the current <em>rahn</em> practices by Bank Kerjasama Rakyat and Pos Malaysia are in accordance with the <em>Shari’ah</em> requirement in the <em>Rahn</em> Exposure Draft issued by BNM, based on available information. However, there are a some concerns regarding the current <em>rahn </em>practices related to the precautious measure before accepting the <em>marhun</em> (pledged item) to ensure the <em>marhun</em> is recognized by <em>Shari’ah</em> and the basis of the imposition of safekeeping fee to customers. As such, these issues call for a further examination and appropriate remedy.</p>}, number={2}, journal={Journal of Islamic Finance}, author={Faakihin, Nur and Hassan, Rusni}, year={2018}, month={Sep.}, pages={061–069} }