Examining the practice of tawarruq credit financing in Malaysian credit co-operatives

Hassan, Rusni and Muhamad Isa@Omar, Harith Hamidi (2021) Examining the practice of tawarruq credit financing in Malaysian credit co-operatives. In: The International Conference on Business and Technology (ICBT 2020), 6-7 November 2021, Istanbul, Turkey. (Unpublished)

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Abstract

Abstract. Credit co-operatives are one of the co-operatives that contribute to Ma-laysia's economic development and progress. These co-operatives have provided credit facilities to their members, either individually or institutionally. Nowadays, credit co-operatives have applied an Islamic contract known as Tawarruq. How-ever, there is limited research and literature on the practices of Tawarruq in this sector. Many studies only focused on the Tawaruq practices of Islamic Banking Institutions (IBs). While Tawarruq practices in IBs face some issues, the question is whether the same issues apply to the credit co-operatives. Therefore, this study focused on the application of Tawarruq practised by the credit co-operatives. This study was conducted qualitatively by compiling data and information from inter-views with the management and observations on the process and other related documents. This study revealed that credit co-operatives contain two modes of Tawarruq arrangements or transactions. The first arrangement is credit co-operatives acting as principals, while the second arrangement is credit co-operatives acting as agents. Hopefully, the findings will provide a good under-standing of Tawarruq practices in this sector.

Item Type:	Conference or Workshop Item (Plenary Papers)
Uncontrolled Keywords:	Tawarruq, Commodity Murabaha, Credit Co-operatives.
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof Dr Rusni Hassan
Date Deposited:	09 Dec 2021 14:30
Last Modified:	09 Dec 2021 14:30
URI:	http://irep.iium.edu.my/id/eprint/93557

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