CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC BANK'S PRACTICES: AN EXPLORATORY STUDY

The purpose of this paper is to explore the corporate social responsibility (CSR) practices of an Islamic bank, which is Bank Islam Malaysia Berhad (BIMB). This research used face-to-face interview technique as a research method in order to get data that are more accurate. The data analysis focuses on four CSR themes namely, zakat, charitable activities, employee and environment. The findings show that BIMB has applied CSR practices in various ways and does not merely focussing on zakat and charitable activities as debated in previous studies in other Islamic banks. This paper contributes to the growing debate on CSR among Islamic financial institutions especially in Islamic banking industry by exploring new visibilities

Corporate Social Responsibility of Islamic Bank's Practices: an Exploratory Study

The purpose of this paper is to explore the corporate social responsibility (CSR) practices of an Islamic bank, which is Bank Islam Malaysia Berhad (BIMB). This research used face-to-face interview technique as a research method in order to get data that are more accurate. The data analysis focuses on four CSR themes namely, zakat, charitable activities, employee and environment. The findings show that BIMB has applied CSR practices in various ways and does not merely focussing on zakat and charitable activities as debated in previous studies in other Islamic banks. This paper contributes to the growing debate on CSR among Islamic financial institutions especially in Islamic banking industry by exploring new visibilities

Shari’ah compliant liquid commodity market : {An expositional study on Bursa Suq al-Sil’ah in Malaysia} / Abdul Azeez Maruf Olayemi ... [et al.]

One of the major challenges before the emerging Islamic financial Institutions is the dearth of Shariah compliant money market platform for the management of their liquidity. However, a viable panacea to the problem has been developed in Malaysia. One of the measures that were taken for the solving of the problem in the country was the creation of Bursa Suq al-Sil'ah which is a Shariah compliant liquidity commodity market. The market is tremendously efficient and it can form a model for other countries. This paper submits that the creation of a similar commodity market in the emerging jurisdictions will mitigate the problem of Shariah compliant liquidity management to a great extent. The study adopts Shariah method in its analysis in view of buttressing the mechanism of Bursa Suq al-Sil‟ah as a model for the emerging jurisdiction

The structural development of Istisna' sukuk structure from Shari'ah perspective

Istiṣna’ sukuk structures have been widely accepted for manufacturing and construction financing purposes. This paper looks at the structural development of Istiṣna’ Sukuk and evaluates both its basic and combination structures. Concerning the former, the paper argues that when Istiṣna’ is used for asset purchasing exercises, it should strictly comply with the general Shari’ah rules regarding Istiṣna’ contracts. Prices must therefore be stipulated at the beginning, as must quality and expected delivery times. The paper then highlights some conflicting features arising from the combination of Istiṣna’ and Ijarah transactions. These raise Shari’ah issues when the issuer seeks to lease an asset to the end user at maturity, even though the asset has been transferred to that end user by way of the Istiṣna’ contract. It is therefore recommended that the market innovates in order to develop additional structures free from this type of impediment. The study proposes a multiple contract’ structure be used whenever Istiṣna’ sukuk is issued in combination with other debt and equity instruments. This will help overcome Shari’ah issues related to secondary markets in Istisna' sukuk issuances

Non-Interest (Islamic) liquidity management in the Nigerian non-interest banking: a legal study from the experience of Malaysia

One of the major potential challenges before the nascent non-interest(Islamic) banking product in Nigeria is the absence of adequate and viable Shariah-compliant instruments of liquidity management. The availability of the instrument is a sine qua non in the banking system. Conversely, Malaysia being the global hub of the Islamic banking and finance has successfully developed viable instruments for the management of Islamic liquidity. The Malaysian instruments are comparably in juxtaposition with that of the conventional system in terms of sophistication and development. The article advocates for the adoption and adaptation of the Malaysian model of Islamic liquidity management instruments into the Nigerian banking system as a panacea. The research is a qualitative comparative legal study. It aims at proposing solution to the lingering problem of non-interest liquidity management in the Nigeria nascent non-interest banking product

Social justice and charitable-trust in Islamic financial transactions

The Islamic model of Social Justice and Charitable-Trust are the most important concepts which made the Islamic Banking and Finance a unique system with moral, honesty and fair economic setting. The Islamic economic system has recognized individual and public ownerships. It provides certain rules and regulations that restored justice in maintaining the two different types of ownerships without any one’s trespass on another. The paper highlights issues and contracts which are based on trust and charity wise arrangement. Murabahah transaction has been the forefront of trust contracts in promoting charitable financial transactions. The paper highlights different types of Murabahah transactions. It also highlights Issues related to benevolent debt (Qardh Alhasan)and its role in balancing the economic system of the Muslim society. The paper concluded that the Islamic economic policies are the most just and moderate policies which protected both the rights of poor and the wealthy individuals. It also minimizes the huge gabs between prosperous and low income individuals

Legal personality of Takaful fund: myth or reality?

Ideally, takaful should be formed on mutual basis and operated by a mutual company owned by takaful participants. Under the mutual structure, the company has its own legal personality whereby it can own assets and carry liabilities. At present, takaful is widely formed under a hybrid of mutual and commercial structure operated by licensed takaful companies. Under this hybrid structure, a takaful fund shall be established on mutual basis and owned by the participants. On the other hand, the takaful company is a commercial entity proprietarily owned by shareholders. Several issues arising in the operation of takaful under this hybrid structure, such as the status of ownership of takaful fund and its surplus. The fund neither belong to the takaful company nor the participants because they have donated their contributions. Some scholars say, the fund itself is the owner of all the contributions, profits and surplus. To enable the fund to become the owner of the contributions and the surplus, it is suggested that the fund should have its own legal personality. Thus, this paper aims to determine the need and feasibility of assigning a legal personality to the takaful fund from Shariah and legal perspectives. It discusses the concept of legal personality in Islamic law followed by the analysis on its applicability to the takaful fund. This study is an academic legal research which involves doctrinal analysis and review of relevant statutes and literatures including Islamic classical texts and scholarly journals and publications. In principle, this study finds that there is a need to assign legal personality to the takaful fund in order to solve certain Shariah issues in the operation of takaful. From the legal perspective, IFSA seems to recognise the legal personality of takaful fund