Application of murabahah transaction in Amana Bank of Sri Lanka : an analytical study /
Murabahah financing is the most widely used product among Islamic banks worldwide. Therefore, this study explores the origin of the Murabahah contract in classical literature and its modification so that it can be applied to meet current market needs. Legal stratagems (LS) are used for this modifica...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English Arabic |
| Published: |
Kuala Lumpur :
Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia,
2018
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| Subjects: | |
| Online Access: | Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library. |
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| Summary: | Murabahah financing is the most widely used product among Islamic banks worldwide. Therefore, this study explores the origin of the Murabahah contract in classical literature and its modification so that it can be applied to meet current market needs. Legal stratagems (LS) are used for this modification and these legal stratagems are the reasons for the criticism. Hence, the validity of these legal stratagems is analyzed through classical and modern literature. Furthermore, the application of Murabahah transaction in Amana Bank, Sri Lanka is analyzed by interviewing nine respondents consisting practitioners and Shari'ah scholars of the bank through thematic analysis. The researcher adopts interviews and analytical methodologies in order to arrive at the result. The study found that using LS alone does not make a contract invalid. However, there are conditions and restrictions that should be applied on use of LS. Even though Murabahah financing products are valid, the products based on profit and loss sharing should be given priority. Furthermore, there is a gap in the concept and application of Murabahah in Amana Bank whereby the practitioners often tend to equate Murabahah financing to conventional loans due to a lack of understanding about the concept of legal stratagems. This study recommends that Amana Bank should not only train their staff in the fundamentals of Islamic finance but also to have a Shari'ah committee representative at each branch to supervise and oversee the validity and necessity of using Murabahah financing and other products. |
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| Physical Description: | xi, 100 leaves : illustrations ; 30cm. |
| Bibliography: | Includes bibliographical references (leaves 83-87). |