General Issues and Challenges of IFS

Islamic economics and the Islamic financial system operate and function in a way similar to the conventional system. Consequently, the Islamic financial industry faces relatively similar challenges to those faced by the conventional system. Due to their distinct features encompassed in the teachings of the Shari’ah, the ideal Islamic economic and financial systems are faced with additional challenges and opportunities. In theory, the Islamic financial system is inclined towards equity-based financial instruments that are related to the real economy. In reality, however, the Islamic finance industry is dominated by debt-based financial instruments that, more often than not, mirror conventional ones. For further details see: ISRA, Islamic Financial System: Principles and Operations.

Insolvency & Bankruptcy


Transfer of Contract With The Intention of Absconding One’s Responsibilities
الصرف من صندوق الإيرادات قيد التصفية على مستخدمي البنك
غرامة التأخير والمماطلة في السداد
بطاقة الائتمان الإسلامية وفقاً لصيغة القرض الحسن
Insurance of a Debt
The Purchase Undertaker Becomes Unable to Pay for the Good After the Bank Has Purchased It
Is it Allowed to execute a tawarruq transaction in order to pay off the debt if the objective is to realize the interests of both parties, especially the indebted customer?
Is it Allowed to Oblige Customers to Give Donations trough Additional Amount on sale Price?
Is it Allowed for KFH to Accept Shares and Bonds with Interest, Collect the Interest from the Company and Deduct it from the Debt until the Entire Debt is Paid?
Is it allowed to sell a portion of debts to the bad debt market at a price slightly less than what is owed by the client?
Is It Allowed for the Law Firm to Charge Fees to the Lessee for Late Payment?
Is it Allowed for KFH to Enter into a Contract with Debt Collection Agencies that Provide Gifts and Money in order to Collect the Owed Debts?
What is the Ruling on Establishing a Takaful Fund for Customers Indebted to KFH’s Local Real Estate Department?
What’s the Ruling on Risk Management of Housing Loans?
Surplus Sharing from Sale of Ijarah Asset between Lessor and Lessee
Surplus Sharing from Sale of Ijarah Asset between Lessor and Lessee
Application of Wa`d as a Mechanism in Dealing with Customer’s Default in Financing Based on Musyarakah Mutanaqisah
Sale of Collateralised Asset in the Event of Default by Financing Receiver to Pay the Financing Amount to Financier
Priority of Depositors in Recovering Deposit in the Event of Winding Up of an Islamic Banking Institution
Financing Settlement Through New Financing
Is it Allowed for KFH to Give Zakat Funds to an Employee Who is Heavily Indebted?
Is it Allowed for the Creditor to Pay the Debtor Any Amount from the Creditor’s Zakat Funds in Order for the Debtor to Pay the Debt Owed to the Creditor?
Is It Allowed for KFH to Calculate the Actual Legal Costs for Each Lawsuit Fee by Comparison with Similar Debt Collection Cases Handled by Other Law Firms?
RESOLUTION No. 64/2/7: INSTALLMENT SALE
Sale of the Commodity Subject Matter of the Contract
Profits from the Sale of Commodity Under the Contract
Status of Conventional Fund Placed in Mudarabah Special Investment Account in the Event of Winding Up of Banking Institutions

Conventional Financial System


Tawarruq With a Conventional Bank
Can an Islamic Bank Ask a Client to Provide a Conventional Bank as a Guarantor?
Issuing Kafalah In Relation To Conventional Banks
Issuing LGs For Soft Loans
LGs From Conventional Banks for Project Finance
Should an Islamic Bank Offer a Guarantee for a Contractor Doing a Job for a Riba Bank?
A Correspondent Bank Wants to Charge the Islamic Bank a Fee for Its Part in Issuing a Letter of Guarantee. Can the Islamic Bank Tell It to Charge the Customer?
Can a Conventional Bank Deposit be Used as Pawn for the Benefit of Islamic Banks
Can an Islamic Bank Let Companies That Deal With Usury Have Current Or Investment Accounts?
Entering Into A Construction Contract With A Conventional Bank
Giving Hibah As Compensation For Delayed Payments
Pawning For The Benefit Of A Conventional Bank
Resolution No: 13 (1/3)[1]: Concerning The Islamic Development Bank’s inquiries
Syndicated Financing Between Islamic And Conventional Institutions
Can a Muslim Contractor Build a Building for a Conventional Bank?
Can an Islamic Bank Issue a Guarantee for a Contractor Doing Work for a Conventional Bank?
Can an Islamic Bank Partner with a Conventional Bank in a Lawful Project?
Is It Allowed to Rent a Building to Employees of an Interest-Based Bank?
Is It Allowed to Rent a Property to an Interest-Based Bank?
Resolution No. 124: The impermissibility of paying the interest amounts accumulated from correspondent bank accounts to beneficiaries other than the poor and Islamic charities
Resolution No. 150: Paying or receiving interest from correspondent banks
تحويل رهن عقاري لفائدة بنك تقليدي
إيداع المسلم أمواله في البنوك التي تتعامل بالفائدة
الفوائد المصرفية التي يضطر البنك لإيداعها في المصارف الربوية
دفع الأرباح المستحقة للودائع بالعملات الصعبة
أرباح الودائع بالعملة الصعبة
LG from a Conventional Bank as Security in Murabahah
What Is to Be Done if the Supplier Is Unable to Deliver Some of the Sold Goods?
Trading In The Shares Of Shari’ah-Compliant Companies That Are Involved In Riba-Based Transactions With Conventional Banks
Islamic Financing Insured By Conventional Insurance
Can an Islamic Bank Take for Security Stocks Issued to a Conventional Bank as Security for an Interest-Based Loan?
Can an Islamic Bank Take a Deposit in a Conventional Bank as Security for a Loan?
Can an Islamic Bank Allow a Shareholder to Mortgage Its Shares as Security for an Interest-Best Loan?
May an Islamic Bank Deposit Money with a Commercial Bank without Interest?
May an Islamic Bank Deposit Money with a Foreign Bank and Give the Interest in Charity?
Is the Seller Responsible if the Buyer Sells the Purchased Good to a Sinner?
Can an Islamic Bank Buy Property in a Non-Muslim Country if Some Tenants Have Shari‘ah Non-Compliant Businesses?
How Can a Conventional Bank Be Converted into an Islamic Bank?
Is It Allowed to Lease Real Estate to Insurance Companies That Offer All Kinds of Insurance?
Can an Islamic Bank Make Regular Monthly Transfers from an Account holder’s Account to Pay a Riba-Based Loan?
Can an Islamic Bank Accept Assignment of Rights Requested by Usurious Banks of Their Customers?
Is It Allowed for an Islamic Bank to Place an Interest-Bearing Deposit in the Central Bank if the Law Requires It?
Is It Allowed to Buy the Shares of Companies Whose Activities Are Lawful but Have Usurious Loans?
Issues in Installing an Electronic Debit Machine
Is It Allowed to Issue a Guarantee for the Benefit of a Conventional Bank?
Is It Allowed to Accept Gifts from Usurious Institutions?
Resolution No. 133 (14/7): The Problem of Arrears in Islamic Financial Institutions
Is it Allowed to for the bank to provide a service (purchasing real estate) to customers because the policies currently applied in another Bank do not allow it to provide this service itself?
Is it Allowed to provide a service (purchasing real estate) to customers on behalf of a conventional bank?
Is it allowed for a company owned by the bank in the USA to sell a car to a customer who borrows the car’s price from a bank on interest?
Is it a Must from a Shariah Point of View to Know about The Origin of the Customer’s Money?
Is it allowed to purchase two properties in Europe whereby the first is a warehouse and the second is a building rented by a foreign bank?
Is it Allowed to enter into a Murabahah contract with a company known for taking and giving riba-based loans?
Is it permissible to purchase a commercial complex and allow current tenants to remain in it providing that two of the tenant are involved in riba transactions?
Is it permissible to conduct Tawarruq procedure for a company that intends to settle a previous interest-based debt?
Is it permissible to evaluate only the real estate assets of commercial banks in return for a fee?
Resolution Regarding the Lease Agreement Between Aviation Lease and Finance Company (ALAFCO) and Al-Shuruq Company
What is the Position of the Fund’s Manager vis-a-vis the Discount Percentage on the Sale of Shares and the Additional Profits Earned in the Event of Positive Market Performance?
Is it Allowed for KFH to Lease a Building Owned by a Conventional Bank in order to Use it for its Offices?
Is it Allowed for KFH to Reserve the Right to Collect the Rent Payments from a Conventional Insurance Company if the Customer Violates any of the Terms of Ijarah Financing Agreement?
Is it Permissible to Use a Program Fully Prepared for Calculating Interest?
Is it Allowed to Purchase a Mortgaged Asset and Resell it to the Son of the Original Owner?
What’s the Permissible Means to Rectify the Situation Whereby KFH has Completed the Procedures for the Investment in a Company Covered by Conventional Insurance?
What is the Ruling on the e-Health Insurance Project Suggested by the Public Service Company?
Is it Allowed to Evaluate Real Estate that Belongs to a Conventional Insurance Company?
Project Financing Based on Istisna` with Pledging of Conventional Bond
Two Financing Facilities Secured by an Asset
Conventional Fixed Deposit Certificate as Security in Islamic Financing
Takaful Coverage for Islamic Financing
Takaful Coverage for Conventional Loans
Takaful Coverage for Conventional Credit Card Product
Retakaful with Conventional Insurance and Reinsurance Company
Co-Takaful Agreement
Nomination Based on Hibah under Takaful Scheme
Capital Segregation in the Operation of Danajamin
Commingling of Funds Contributed by Islamic and Conventional Banking Institutions in Deposit Insurance
Surplus Sharing Post Liquidation and Payment of Claims between Islamic and Conventional Banking Funds
Application of Conventional Overdrafts to Cover Insufficiency in Wadi`ah Current Account
Islamic Financial Instrument as Underlying Asset in Conventional Transaction
Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi
Hukum Mempromosikan Produk Insurans Konvensional Menurut Perspektif Syariah
Kajian Hukum Insurans Am
Hukum Ke Atas Produk Investment Link Menurut Islam
Is It Permissible to Offer Various Services Including Professional and Technical Training, Consultancy Services and Seminars to Riba-Based Banks?
Is It Allowed to Deduct Certain Amounts from a Number of Customers’ Accounts in Order to Pay for the Usage of Their Credit Cards Issued by Local Banks?
Is It Allowed for KFH to Provide Services for Conventional Banks Such as Dispatching and Distributing Letters to Customers?
Is it Allowed for KFH after Selling a Car to a Customer to Transfer it by Way of One of the Local Banks to Be Paid for in Installments?
What’s the Shariah Opinion Regarding the Handling of a Bank’s Previous Riba-based Loans that Were Made before the Bank Was Converted to an Islamic Bank?
Is It Allowed for a Bank Converted to Conventional to Islamic to Distribute Any Profits Resulting from the Interest Earned to its Shareholders?
How Can KFH as a Shareholder of an Islamic Bank that Converted from the Conventional System Handle the Profits Provided as Cash and Bonus Shares?
What’s the Shariah Opinion Regarding the Contribution by Conventional Banks of No More Than 20% to the Establishment of an Investment Company?
Is It Allowed for KFH to Be the Selling Agent for the Units of an Islamic Fund Using Subscription Application Forms That Bear the Name of a Conventional Bank as the Investment Trustee?
What’s the Shariah Opinion Regarding the Addition of American Express Services to KFH’s Point of Sale Equipment?
Is It Allowed to Enable All Banks’ Credit Cardholders to Make Cash Withdrawals from KFH’s ATM Machines?
Is It Allowed for KFH to Accept Deposits from Entities Whose Businesses Include Proscribed Activities in Order to Use These Deposits in Shariah Compliant Investments?
Is It Allowed to Provide a Debt Collection Company with a Point-of-Sale Equipment That Accepts the Credit Cards of KFH and Other Banks?
Is It Allowed for a Shari’ah-Compliant Company to Provide Security Guard Services to Interest-Based Banks?
RESOLUTION No. 9 (9/2): INSURANCE AND REINSURANCE
RESOLUTION No. 10 (10/2): TRANSACTIONS WITH BANKS DEALING WITH INTEREST AND TRANSACTIONS WITH ISLAMIC BANKS
RESOLUTION No. 13 (1/3): QUESTIONS SUBMITTED BY THE ISLAMIC DEVELOPMENT BANK (IDB)
General Provisions of Agency in Murabahah Transactions
Calculation of Profits on Insurance Service
تأجير مباني الى جهات تعمل بالفوائد
المضاربة مع البنوك التقليدية
Status of Conventional Fund Placed in Mudarabah Special Investment Account in the Event of Winding Up of Banking Institutions

Conversion


انخفاض قيمة العملة
استثمار البنك ودائع العملاء بالعملة الصعبة وردها بالعملة نفسها
Is It Allowed to Buy the Shares of Companies That Deal in Interest in Order to Change Them?
Is It Allowed to Buy the Shares of Companies Whose Activities Are Lawful but Have Usurious Loans?
Is It Allowed to Buy Shares of a Conventional Insurance Company in Order to Convert It into a Cooperative Insurance Company?
What are the Rulings of Purchasing Existing Companies and Restructuring them so that they Conform to the Investment Requirements of the Shari’ah?
Is it Allowed to Purchase Existing Companies in order to Islamize them?
Is it Allowed to provide a service (purchasing real estate) to customers on behalf of a conventional bank?
What are the permissible means to restructure a conventional debt in order to conform to the Shari’ah principles?
Is it Allowed for KFH to Accept Shares and Bonds with Interest, Collect the Interest from the Company and Deduct it from the Debt until the Entire Debt is Paid?
Is it Permissible to Purchase a Land’s Usufruct Together with the Constructed Facilities from a Company that Promises to Lease the Constructed Facilities from KFH?
Is it Allowed to Participate in a Lease Contract that is Currently Established on Conventional Lease Agreement in Order to be Leased Using a Shari’ah Compliant Lease Agreement?
Is it Allowed to Participate in a Lease Contract That Contains a Clause which Contravenes the Laws of Shari’ah?
Hukum Pembayaran Simpanan Kumpulan Wang Simpanan Pekerja (KWSP) Bagi Ahli Yang Memeluk Islam
What’s the Shariah Ruling Regarding a Loan with Specified Nominal Interest Given to a Company by the Shareholders Owing to Investment Conditions?
What Are the Conditions that Must Be Fulfilled by Any Company that Declares Its Desire to Be Shari’ah Compliant in Its Activities and Financial Dealings?
What’s the Shariah Opinion Regarding the Frameworks for the Conversion of Debt into Shares and the Islamization of a Targeted Company?
Is It Permissible to Offer Various Services Including Professional and Technical Training, Consultancy Services and Seminars to Riba-Based Banks?
What’s the Shariah Opinion Regarding the Handling of a Bank’s Previous Riba-based Loans that Were Made before the Bank Was Converted to an Islamic Bank?
Is It Allowed for a Bank Converted to Conventional to Islamic to Distribute Any Profits Resulting from the Interest Earned to its Shareholders?
How Can KFH as a Shareholder of an Islamic Bank that Converted from the Conventional System Handle the Profits Provided as Cash and Bonus Shares?
Is It Allowed to Establish a Portfolio to Purchase Companies That Provide Shariah Compliant Support Services Providing That Some of Them Provide Haram Services?
What Are the Conditions for Providing Credit Lines to a Company?
المشاركة في نشاط تجاري يتعامل بالربا إقراضًا واقتراضًا

Procrastinating Debtor


Claiming Legal Expenses From The Customers
Giving Hibah As Compensation For Delayed Payments
Ta'widh On Judgement Debt
Using Current Account Deposit as Pawn
A Discount for Accelerated Payment in a Delayed Payment Contract
Can a Bank Stipulate Up-Front That, if a Customer Misses a Payment, He Must Pay Two Instalments?
Can a Financial Penalty Be Levied on Late Payment of a Loan?
Can a Rich Debtor Who Delays Payment Be Made to Pay the Legal Costs of Recovering the Debt?
Can an Islamic Bank Charge a Customer for Writing a Bounced Check?
Resolution No. 109 (3/12): "Penalty Provision"
RESOLUTION No. 76/7/8: PROBLEMS OF ISLAMIC BANKS
Increasing the Profit Rate on Subsequent Murabahah Deals Due to Late Payments in Earlier Deals
قرار رقم 186 (1/20) بشأن أحكام الإعسار والإفلاس في الشريعة الإسلامية
التحكيم الوارد بالعقود
صيغة الشرط الذي يضمن بالعقود لإلزام العميل بالزيادة التي تضاف لحساب مخصص الديون المتعثرة
إنفاق حصيلة الإيرادات الناتجة من الفوائد المحرمة وغرامات المدينين المعسرين المماطلين
غرامة التأخير للعملاء في حالة المماطلة في سداد مبلغ الاعتماد
فرض عقوبات في حالة مماطلة المرابح
فرض غرامة تأخير على العميل الذي لا يفي بالتزاماته
غرامة التأخير والمماطلة في السداد
التأمين على الديون والحياة
Imposition Of Ta'widh In Islamic Finance
Can a Penalty Clause for Late Payment Be Added to an Islamic Banking Contract?
Is it Lawful to Financially Penalize a Rich Debtor Who Delays Payment?
What Can an Islamic Bank Do if a Debtor Who Can Afford to Pay Delays Payment?
What if an Unscrupulous Debtor Delays Payment to an Islamic Bank because It Doesn’t Charge Interest?
Resolution No. 1 (1/2): Concerning the Zakah of Debts
Can a Bank Put a Clause in an Installment Payment Contract Requiring the Buyer to Pay a Penalty for Late Payment?
Is it Allowed to Stipulate a Penalty Clause against the Defaulting Lessee in a Lease Contract?
What is the Ruling of Penalty Clause?
What is the shari‘ah ruling on penalty clause?
Hukum Penyaluran Hasil Gharamah Institusi Kewangan Islam Ke Baitulmal
Is It Allowed for KFH to Retain the Late Penalty Charges on Defaulting Customers?
Is It Allowed for KFH to Calculate the Actual Legal Costs for Each Lawsuit Fee by Comparison with Similar Debt Collection Cases Handled by Other Law Firms?
RESOLUTION No. (51/2/6): 'SALES ON INSTALLMENTS'
RESOLUTION No. 64/2/7: INSTALLMENT SALE

Financial Inclusion


Research and Development


Resolution No: 13 (1/3)[1]: Concerning The Islamic Development Bank’s inquiries
RESOLUTION No. 83/14/8: THE COMMISSIONING AND DEBATING OF RESEARCHES AT THE ACADEMY' S SESSIONS
Resolution No. 104: The permissibility of participating with University A to develop a cure for cancer
الفوائد المصرفية التي يضطر البنك لإيداعها في المصارف الربوية
إنفاق حصيلة الإيرادات الناتجة من الفوائد المحرمة وغرامات المدينين المعسرين المماطلين
فرض غرامة تأخير على العميل الذي لا يفي بالتزاماته
May an Islamic Bank Deposit Money with a Foreign Bank and Give the Interest in Charity?
an Islamic Bank “Loan” Employees to Another Institution When the Cost of Their Salaries Brings No Direct Benefit to the Bank’s Shareholders?
Can Muslim Male Employees Work with a Non-Muslim Woman Who Does Not Dress According to Shari‘ah?
What is the Ruling on Men Training Female Employees?
Is It Allowed to Conduct Mixed Training Programs for Male and Female Employees?
Is it Allowed to Involve in a Project that Provides Credit Lines to Invest in Education?
What is the Ruling on the Legality of Dealing in Education, Medical Treatment and Travel?
What is the Ruling on Spending zakat Funds to Print Academic Thesis on Islamic Banking?
Is It Permissible to Offer Various Services Including Professional and Technical Training, Consultancy Services and Seminars to Riba-Based Banks?
Is It Allowed to Spend Interest Given to KFH Without Its Request to Organize Seminars?
Is It Allowed for the Organization Providing Training Courses for KFH’s Employees to Compensate the Shortage of Male Lecturers with Female Lecturers?
RESOLUTION No. 38 (13/4): THE RECOMMENDATIONS OF THE FOURTH SESSION OF THE COUNCIL OF THE ISLAMIC FIOH ACADEMY
RESOLUTION No. 48 (10/5): ENFORCEMENT OF SHARI'A RULES
RESOLUTION No. 49 (11/5): INTERNATIONAL ISLAMIC LAW COMMISSION

Islamic Fintech


Innovation


Peer-to-Peer (P2P) Financing


 

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