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Tawarruq practice for liquidity management: comparative study between komoditi syariah Indonesia and bursa suq al sila` Malaysia

Mihajat, Sastra Muhammad Iman and Hasan, Aznan (2014) Tawarruq practice for liquidity management: comparative study between komoditi syariah Indonesia and bursa suq al sila` Malaysia. International Journal of Excellence in Islamic Banking & Finance, 4 (1). pp. 1-16. ISSN 2220-8291

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Purpose – The main purpose of this paper is to review the tawarruq practice between Komoditi Syariah Indonesia and Bursa Suq Al-Sila (BSAS) Malaysia that used by Islamic financial institutions (IFIs) for liquidity management instrument. Design/methodology/approach – The paper is based on comprehensive Sharī’ah compliance review of tawarruq with the objective to propose a solution to Sharī’ah issues in liquidity management in Islamic bank. Findings – This paper reviewed the concept of tawarruq practice in IFIs in Indonesia and Malaysia to maintain the liquidity satisfaction from the stakeholders. In 2011, Jakarta Future Exchange has launched one instrument in Islamic money market for Islamic bank’s liquidity management instrument namely Komoditi Syariah. Despite there are some features differences between Komoditi Syariah Indonesia with BSAS Malaysia, nevertheless both of them using the same Islamic contract which is tawarruq. This paper found that there are some Sharī’ah potential issues that affect the compliancy of the product. Therefore, this paper tries to put some possible Sharī’ah structures that could be proposed to Islamic financial industries to take into consideration for future Sharī’ah structure for liquidity risk management in Islamic banking industries. Research limitations/implications – Islamic banks, Islamic stock exchange institutions and other IFIs that offer Islamic financial services may take into concern what are Sharī’ah parameters in applying tawarruq structure in any products and services in Islamic banks. Originality/value – The analysis is valuable in drawing the attention of Islamic banking practitioners, Sharī’ah scholars and stakeholders in general to compare the practice of liquidity management instrument of Komodity Syariah JFX Indonesia and BSAS Malaysia.

Item Type: Article (Journal)
Additional Information: 2241/89838
Uncontrolled Keywords: Liquidity Management, Tawarruq, Komoditi Syariah, Bursa Suq Al-Sila`
Subjects: BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Aznan Hasan
Date Deposited: 09 Jun 2021 17:09
Last Modified: 09 Jun 2021 17:09
URI: http://irep.iium.edu.my/id/eprint/89838

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