7.0 Application of Mudarabah
7.1 Mudarabah as source of fund in Islamic banks
To mobilize the funds, bank accepts deposits or investments from customers under Mudarabah contract. In these cases, the bank switches its position to be the mudarib and the depositors or investors are the rabbul mal. All the deposits are pooled and the bank uses them to finance projects or invests them in other businesses. Profit is shared according to pre-agreed ratio. However, if any loss suffered by the business will be borne entirely by the investor unless there is a negligence or breach of terms of contract from the bank. The bank may receive compensation (Mudarib fees) from its investors in return for management of their funds. The Bank is bound to return the capital to the investors after deducting any losses or Mudarib fees at the time of ending up the contract.
7.2 Mudarabah as a financing instrument
7.2.1 Project financing
The bank provides the capital as
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The holders of Mudarabah Sukuk are the suppliers of capital (rabbul mal). They own shares in the Mudarabah equity and its return is according to the percentage of ownership share. Mudarabah Sukuk holders have the right to transfer the ownership by selling deeds in the securities market. Mudarabah Sukuk should not contain a guarantee from the issuer or the manager for the fund. Mudarabah Sukuk can be issued to mobilize funds and strengthen trading and industrial activities.
7.2.5 Inter-bank Funds Market
In Malaysia, the Islamic Inter-bank Money Market (IIMM) was introduced in January 3, 1994 as a short-term intermediary to provide a ready source of short-term investment outlets based on Shariah principles. BNM issued the guidelines on the IIMM in December 1993 to facilitate proper implementation of the IIMM. One of the aspects covered by IIMM is the Mudarabah interbank investments
I am going to critically review a newspaper article on the death of Hamzah Khan from Bradford. I will discuss the main findings the research methodology and the way in which it may or may not be useful in the contribution to our understanding of child welfare. I will also include information on child abuse and on the different agencies. The newspaper article is called Hamzah Khan: the harrowing story of an 'invisible' child. (Pidd, 2013)
Did you know tobacco and alcohol use cause over 475,000 deaths in the U.S. annually? To assist young people in avoiding these harmful behaviors, the D.A.R.E. program enhances the knowledge and awareness of the hazards regarding dangerous substances throughout a ten week program. The acronym D.A.R.E. stands for drugs, abuse, resistance, and education. D.A.R.E. ensures the safety of adolescents in various situations and instills beneficial strategies, techniques, and tips to aid young people in making responsible decisions.
Joseph Mileck asserts in Hermann Hesse: Life and Art that Siddhartha is a perfect exemplification of what he calls, "conscious craftsmanship". For Mileck, Hesse consciously synchronized form and substance in Siddhartha to best illustrate a feeling of unity and the journey through the mind, body, and soul. In Siddhartha, Hesse consciously crafted a piece that is unified in form, style, and content, and created an atmosphere in which each one of these elements is perfectly complementary with the others.
The Dhammapada is a unique book that addresses about Buddha speaking upon how to free one’s self from suffering based on the eight fold paths. The book talks about how we live life and how to learn from our suffering to prosper without any suffering in the afterlife. There are many proverbs of wisdom, similes, metaphors, and analogies where one can learn from Buddha’s teachings to live a better life without enduring any more pain. What I have learned the most coming from the eight fold paths are the following; right speech and right concentration.
Religious discrimination is the biggest social issue in the USA. Since the 9/11 attacks Sikh’s have been tortured and treated really badly only because of their appearance. Arabs and Muslims are also tortured because of the religion they belong to. People should not insult other people without even knowing about their background. People should try to get to know about other person’s background before coming into any conclusion, he might be the best person they have ever met. The U.S. should abolish the practice of practice of profiling based on appearance at government office, schools, private offices etc.
In Euripides’ play The Bacchae, the ideals that were the foundation of Greek culture were called into question. Until early 400B.C.E. Athens was a society founded upon rational thinking, individuals acting for the good of the populace, and the “ideal” society. This is what scholars commonly refer to as the Hellenic age of Greek culture. As Athens is besieged by Sparta, however, the citizens find themselves questioning the ideals that they had previously lived their lives by. Euripides’ play The Bacchae shows the underlying shift in ideology of the Greek people from Hellenic (or classical), to Hellenistic; the god character Dionysus will be the example that points to the shifting Greek ideology.
Tan, A.C.K. and Goh, K.L. (March 2007). FINANCIAL DISINTERMEDIATION IN THE 1990s: IMPLICATIONS ON MONETARY POLICY IN MALAYSIA. Available: http://www.centerforpbbefr.rutgers.edu/2007/Papers/093-financial%20disintermediation.pdf. Last accessed 28th Feb 2014.
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
The other source has been Puranas which are eighteen in number and contains information about the creation and dynasties of god, sages and kings and detailed description of yugas. All the sources are on the same footstep and no one has supremacy over the other.
(b) As an Institution-builder: Development banks help in developing new methodologies and systems in raising capital and increasing investments through non-traditional areas such as financing large projects via Build-Operate and Transfer/Lease/Own (BOT, BOL, BOO), bonds, microfinance, etc.
Alternatively, when expenses exceed revenue for a defined period, an operating loss shall be recorded. Mudarabah operating loss which is measured during the operating period may be offset against prior or future profits. Loss shall be solely borne by the capital provider except in the event of misconduct, negligence or breach of contract by the manager. The manager may not undertake to bear the loss. The manager may bear the loss at the time the loss is realized without any prior condition or undertaking. A third party may undertake to bear the loss of capital due to misconduct or negligence on the part of the manager. The capital provider may take collateral from the mudarib, provided that the collateral could only be liquidated in the event of negligence or misconduct or violation of term of contract by the Mudarib. Capital loss shall be recognized when the loss occurs prior to the commencement of the business or due to extenuating circumstances beyond the control of the manager and not due to the negligence or misconduct of the manager. The Mudarabah agreement may be mutually reviewed to ascertain whether the capital loss impairs the future performance of the business activity and the partners may decide to restructure the agreement accordingly. Operating loss shall be recognized when the loss occurs during the course of ordinary business. The losses may be carried forward to the next period and subsequently, be set-off against prior or future
Determination Everyone has been determined to do something at one point in their lives, but what does determination really mean? What one person is determined to do, another person might not care about, or could be determined to do it at a different extent. Determination comes from within, so it can vary from person to person. Per the dictionary, determination is “the act of coming to a decision or of fixing or settling a purpose” (“Determination”). When you have a strong need or want to do something, whether it be for yourself or someone else, you are determined.
Functions performed by financial intermediaries can be categorized into three functions; (1) maturity transformation, (2) risk transformation, and (3) convenience denomination. With maturity transformations, intermediaries convert short-term liabilities to long term assets. This conversion is common with banks and other institutions that provide liquidity for entrepreneurs, giving a short term debt a match with a long term loan. Rather than constantly evaluating short term loan options and rolling over the debt balance, a longer term commitment is able to be made that locks in a lower rate to benefit all parties. Additionally, intermediaries can provide risk transformation, which offer the ability to convert risky investments into relatively risk-free by lending to multiple borrowers to spread the risk. By pooling the funds of multiple investors, the intermediary – such as a mutual fund – inherently provides diversification and tolerance against a single investment producing undesirable results. Finally, convenience denomination is provided by an intermediary. With a large quantity of deposits being held at a financial intermediary, they are able to match small deposits with large loans, and larger deposit...
The word “Takaful” is derived from the Arabic verb “Kafala” which simply means to jointly guarantee. Therefore the pact between at least two parties agreeing to jointly guarantee one another in the event of a loss, as a consequent of being afflicted by a calamity defines the term “Takaful”. Technically Takaful defines a mutual; guarantee or assurance based on the principle of al-aqad (contract) provide by group of people living in the same society, against a defined risk or catastrophe befalling life, property or any form of valuable asset. According to Islamic Financial Services Act 2013 Takaful means an arrangement based on the mutual assistance under which Takaful participants agree to contribute to a common fund providing for
Islam is the religion of peace. It is not a new religion revealed by the creator Allah Subhana Wa Tala through all His Prophet in every era and to every people Islam is not only a religion it is also a manual of life. Followers of Islam have to submit their wills to God and have to admit that God is one and He is Allah who runs the entire universe. The key of Islam is