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Semelhante a Intro To Shariah Compliant Structures Mohammed Haris
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Intro To Shariah Compliant Structures Mohammed Haris
- 1. Introduction to Shariah Compliant Structures and Business Applications Mohammad Haris Deputy General Manager, Corporate Banking, Structured Finance & Product Development April 28, 2009 1 St East and Central Africa Conference on Islamic Banking
- 3. Shariah Compliant Structures Murabaha 1 St East and Central Africa Conference on Islamic Banking
- 7. Process Flow 1 St East and Central Africa Conference on Islamic Banking Bank Customer Supplier Agreement for Murabaha (1) Payment (2) Asset (3) Offer to Purchase (4) Acceptance + Transfer of Title (5) Payment of Sale Price (6)
- 8. Shariah Compliant Structures Ijarah 1 St East and Central Africa Conference on Islamic Banking
- 11. Process Flow 1 St East and Central Africa Conference on Islamic Banking Vendor Bank Customer Undertaking to Lease (1) Payment to Purchase Assets (2) Transfer of title (3) Lease Agreement (4) Rental Payment (5) At the end of Contract period client purchase the assets And Transfer of Title (6)
- 14. Shariah Compliant Structures Musharaka 1 St East and Central Africa Conference on Islamic Banking
- 21. Processflow Profit 1 St East and Central Africa Conference on Islamic Banking Partner A Partner B Funds Shariah Compliant Business
- 22. Shariah Compliant Structures Mudarabah 1 St East and Central Africa Conference on Islamic Banking
- 25. Processflow Profit 1 St East and Central Africa Conference on Islamic Banking Depositors Asset Manager Funds Shariah Compliant Assets, Financing Expertise
- 27. Business Solution - Financing Requirement Working Capital Financing Using Murabaha (Sale) Mode of Financing 1 St East and Central Africa Conference on Islamic Banking
- 31. Process Flow 1 St East and Central Africa Conference on Islamic Banking Bank Customer Cotton Supplier Agreement for Murabaha (1) Agency Agreement to source cotton supplier (2) Payment of Kes 100 Mio (3) Delivery of Cotton (4) Offer to Purchase cotton at Kes 106 Mio in 6 months (5) Acceptance of Sale + Transfer of Title (6) Differed payment of Kes 106 Mio (7)
- 33. Business Solution - Financing Requirement Asset/Project Financing Using Ijarah (Leasing) Mode of Financing 1 St East and Central Africa Conference on Islamic Banking
- 36. Process Flow 1 St East and Central Africa Conference on Islamic Banking Vendor Bank Customer Undertaking to Lease (1) ksh10m (2) Truck Title (3) Lease Agreement (4) Rental Payment (5) (At the end of Lease period) Truck Title (6)
- 39. Business Solution- Financing Requirement Asset/Project Financing Using Diminishing Musharaka (Partnership) Mode of Financing 1 St East and Central Africa Conference on Islamic Banking
- 43. Joint Partnership Musharaka Payment of Rental and Purchase of Unit Gradual Transfer of Ownership Process Flow Kes 6m Kes 4m 1 St East and Central Africa Conference on Islamic Banking Bank Customer Supplier
- 44. Business Solution - Trade Requirement Trade Finance Products 1 St East and Central Africa Conference on Islamic Banking
- 47. Business Solution - Trade Finance Requirement Import Financing Using Murabaha (Sale), Ijarah (Leasing) and Musharaka (Partnership) Mode of Financing 1 St East and Central Africa Conference on Islamic Banking
- 52. Business Solution - Trade Finance Requirement Export Financing Using Musharaka (Partnership) and Wakala (Agency) Mode of Financing 1 St East and Central Africa Conference on Islamic Banking
- 55. Business Solution - Trade Requirement FX Deals 1 St East and Central Africa Conference on Islamic Banking
- 58. Thank you 1 St East and Central Africa Conference on Islamic Banking
- 59. Q & A 1 St East and Central Africa Conference on Islamic Banking
Notas do Editor
- Murabaha Murabaha is a particular kind of sale where the transaction is done on a “cost plus profit” basis The distinguishing feature of Murabaha from ordinary sale is - The seller discloses the cost to the buyer - And a known profit is added Since Murabaha is a sale transaction, rules of Shariah regarding sale should be applied.
- Basic Rule for Murabaha sale/finance Asset to be sold must exist. Sale price should be determined. Sale must be unconditional. Assets to be sold:- should not be used for un-Islamic purpose. should be in ownership of the seller at the time of sale. should be in physical or constructive possession of the seller.
- Murabaha Murabaha is a particular kind of sale where the transaction is done on a “cost plus profit” basis The distinguishing feature of Murabaha from ordinary sale is - The seller discloses the cost to the buyer - And a known profit is added Since Murabaha is a sale transaction, rules of Shariah regarding sale should be applied.
- ISSUES IN MURABAHA Following are some of the issues in murabaha financing: 1. Securities against Murabaha Payments coming from the sale are a receivable and for this the client may be asked to furnish a security. It can be in the form of a mortgage or hypothecation or some kind of lien or charge. 2 . Guaranteeing the Murabaha The seller can ask the client to furnish a 3 rd party guarantee. In case of default on payment the seller may have recourse to the guarantor who will be liable to pay the amount guaranteed to him. There are 2 issues relating to this: a) The guarantor cannot charge a fee from the original client. The reason being that a person charging a fee for advancing a loan comes under the definition of riba. b) However the guarantor can charge for any documentation expenses. 3. Penalty of default Another issue with murabaha is that if the client defaults in payment of the price at the due date, the price cannot be changed nor can penalty fees be charged.
- In order to deal with dishonest clients who default in payment deliberately they should be made liable to pay compensation to the Islamic Bank for the loss suffered on account of default. However these should be made subject to the following conditions: a) The defaulter should be given a grace period of at-least one-month. b) If it is proved beyond doubt that the client is defaulting without valid excuse then compensation can be demanded. 4. Rollover in Murabaha Murabaha transaction cannot be rolled over for a further period as the old contract ends. It should be understood that murabaha is not a loan rather the sale of a commodity which is deferred to a specific date. Once this commodity is sold its ownership transfers from the bank to the client it is therefore no more a property of the seller. Now what the seller can claim is only the agreed price and therefore there is no question of effecting another sale on the same commodity between the same parties. 5. Rebate on earlier payments Sometimes the debtors want to pay early to get discounts. However in Islam majority of muslim scholars including the major schools of thought consider this to be un-Islamic. However if the Islamic bank or financial institution gives somebody a rebate on its own it is not objectionable, especially if the client is needy.
- In order to deal with dishonest clients who default in payment deliberately they should be made liable to pay compensation to the Islamic Bank for the loss suffered on account of default. However these should be made subject to the following conditions: a) The defaulter should be given a grace period of at-least one-month. b) If it is proved beyond doubt that the client is defaulting without valid excuse then compensation can be demanded. 4. Rollover in Murabaha Murabaha transaction cannot be rolled over for a further period as the old contract ends. It should be understood that murabaha is not a loan rather the sale of a commodity which is deferred to a specific date. Once this commodity is sold its ownership transfers from the bank to the client it is therefore no more a property of the seller. Now what the seller can claim is only the agreed price and therefore there is no question of effecting another sale on the same commodity between the same parties. 5. Rebate on earlier payments Sometimes the debtors want to pay early to get discounts. However in Islam majority of muslim scholars including the major schools of thought consider this to be un-Islamic. However if the Islamic bank or financial institution gives somebody a rebate on its own it is not objectionable, especially if the client is needy.