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A case study on the implementation of the Qardhul Hasan concept as a financing product in an Islamic bank in Malaysia

Zainal Abidin, Ahmad and Mohd Ariffin, Noraini and Mohd Alwi, Norhayati (2011) A case study on the implementation of the Qardhul Hasan concept as a financing product in an Islamic bank in Malaysia. In: IIUM International Accounting Conference V (INTAC V) 2011, 12th-13th July, 2011, Sepang, Kuala Lumpur. (Unpublished)

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Abstract

Qardhul Hasan is a zero-return financing that Al-Quran urges Muslims to make available to those who need them. In addition, Qardhul Hasan is an example of a unique interest free instrument that is offered by Islamic Financial Institutions (“IFIs”). The objective of this paper is to study the implementation of the Qardhul Hasan concept, as a financing product in an Islamic bank in Malaysia. This study adopted a single case study research. This is the best approach, and appropriate to answer the research questions and to achieve the research objective. Furthermore, an exploratory case study has been adopted. As a result, this study found that CALF (Malaysia) Berhad only offers Qardhul Hasan financing to its employees. In addition, the facility is limited for certain purposes, which are for marriage, birth of a child, study and inopportune. As there are only three IFIs in Malaysia that offer Qardhul Hasan, it is hoped that this study can provide the remaining IFIs or other IFIs in the world with a guideline or basis on how to implement Qardhul Hasan financing. It is also believed that this study can be used by regulatory bodies, including Bank Negara Malaysia or the Malaysian Accounting Standard Board, or as a basis for setting up specific accounting and reporting guidelines on Qardhul Hasan.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 1616/12287
Uncontrolled Keywords: Qardhul Hasan concept, financing, Islamic banking, Malaysia
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
H Social Sciences > HJ Public Finance > HJ9701 Public accounting
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Dr Norhayati Mohd Alwi
Date Deposited: 10 Nov 2017 10:38
Last Modified: 10 Nov 2017 10:38
URI: http://irep.iium.edu.my/id/eprint/12287

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