The treatment of Qarḍ (Qarḍ facility) for solvency of takāful fund in a takāful undertaking

Mahadi, Nur Farhah (2023) The treatment of Qarḍ (Qarḍ facility) for solvency of takāful fund in a takāful undertaking. Journal of Islamic Shariah, 2 (1). pp. 2-26. E-ISSN 2773-5915

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Abstract

The aim of this paper is to understand the practical application of investment and deposit products in comparison with the guidelines offered by the Islamic Financial Services Act (IFSA). Here, the products’ features and benefits of the banks’ deposit and investment products are highlighted. A performance analysis of both products is conducted among different banks in Malaysia, and their results are used to draw conclusions on the effects of IFSA on banks. The data was based on two banks in Malaysia: one was a fullyfledged Islamic bank, and the other was a subsidiary bank offering Islamic banking products. The information was obtained from the banks’ websites, annual reports, and Bank Negara Malaysia’s (BNM) website. The findings of the research are that the two banks analyzed all conform to the guidelines issued by IFSA. The volumes of investment products have significantly decreased after the introduction of IFSA compared to the volumes of deposit products. Bank Islam and CIMB Islamic both provide items that are suitable for use with an IFSA. Customers have a thorough understanding of the benefits of various types of deposits and investments.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic Financial Services Act, Investments, Deposits, products
Subjects:	H Social Sciences > HG Finance > HG8719 Islamic Insurance Takaful
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Nur Farhah Mahadi
Date Deposited:	29 May 2023 04:53
Last Modified:	29 May 2023 05:01
URI:	http://irep.iium.edu.my/id/eprint/104825

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