Tawarruq time deposit with wakalah principle: an option that triggers new issues

Abdul Ghafar Ismail · Nik Abdul Rahim Nik Abdul Ghani · Mat Noor Mat Zain

16 citations0/0 files storedInternational Journal of Islamic and Middle Eastern Finance and Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Islamic Finance and Banking Studies Islamic Thought and Society Studies Qur’anic Interpretation Studies

Abstract

Purpose This paper aims to make an attempt to analyze the adoption of wakalah in the tawarruq deposit that may trigger new issue. Design/methodology/approach This paper provides a review on the underlying contracts for deposit-taking activities. Findings There are two mains findings from this paper – first, the current deposit taking activities are characterized by principal guaranteed, it deems contrary to the nature of mudarabah. Second, we suggest the presence of wakalah in tawarruq term deposits and we argue that the application of the concept of bay al-wakillinafsihi would not affect the validity of wakalah. Originality/value This paper is considered to have its own originality in the sense that the introduction of tawarruq-based deposit product by Islamic banks could be the best alternative to the current deposit products.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 16 citations exist upstream.

References

2007Understanding Islamic finance

Cited by

2020Application of Tawarruq in Islamic Banking in Malaysia: Towards Smart Tawarruq 2020Cryptocurrency as A Main Currency: A Maqasidic Approach

Imported from OpenAlex (CC0) — nothing here is generated.