Murabaha Case Study

INTRODUCTION

Murabaha is from word ((الرِبْحُ, that word mean profit or get more. From my reading, the meaning of murabaha is transaction good with tell the buyer the true price and profit the seller will get from the good and both side must be agree with the condition. One thing is important in murabaha is the seller must tell the buyer true price and profit because when we tell the buyer, one day if something hapen to the transaction the buyer cannot sue the seller cause seller have tell the buyer already about the transaction. This transaction can use cash or credit because murabaha is one of the islamic way to help people get the thing without riba. This make the islamic and convensional transaction is more different. If we look to convensional, when the buyer want to purchase good the seller just tell the buyer true price and percentage from the price, but the seller not tell the buyer the final price what buyer have to pay for the good. And actualy convensional the transaction is to borrow the money not buy the object. For example, Encik Ahmad want to buy a house and he go to the bank as a agent. Bank will explain to Encik Ahmad the cost of house and the adding cost. If Encik Ahmad agree with that contract from bank, both party have agreement and that we call mudaraba. But in conventional, Encik Ahmad only get information the cost of house and the interest that have Encik Ahmad pay monthly.

The big issue in this chapter is guaranteeing the Murabaha. The seller can ask the buyer to have third party as a guarantee because if the buyer can not pay the installment to seller, seller can ask third party to pay for the buyer. In this situation, the third party

CONTENT concept Murabahah is a some kind of sale where the seller m...

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...liquidity facility to banks whenever needed. the existing lender of last resort facilities are based on interest, therefore islamic banks cannot benefit from these.

Operational risks is the risk direct or indirect loss resulting from not enough or failed in internal processes, people, and technology or from external events. Given the newness of Islamic banks, operational risk in terms of personal risk can be acute in these institutions. Operation risk in this respect particularly arises as the banks may not have enough qualified professionals like capacity and capability to conduct the Islamic financial operations. Given the different nature of business, the computer software available in the market for conventional banks may not be appropriate for Islamic banks. This gives rise to system risks of developing and using informational technologies in Islamic banks.