Towards an Islamic Social (Waqf) Bank

Mohammad, Mohammad Tahir Sabit

doi:10.7763/ijtef.2011.v2.135

Cited by 34 publications

(28 citation statements)

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“…Habib (2007) suggests that Islamic banks can use income derived from late-payment penalties and other proceeds to establish these institutions. Mohammad (2011) argues that because commercial banks usually miss the poorer clients, cash waqfbased Islamic banks can provide more compassionate and egalitarian services. Because the people establishing cash waqf will not have as much target profit in mind as the investors in commercial banks, the waqf management can use the funds in a more flexible way in financing social needs as well as providing benevolent loans to the ultra-poor.…”

Section: Application Of Waqf In a Contemporary Policy Frameworkmentioning

confidence: 99%

“…Because the people establishing cash waqf will not have as much target profit in mind as the investors in commercial banks, the waqf management can use the funds in a more flexible way in financing social needs as well as providing benevolent loans to the ultra-poor. Mohammad (2011) suggests that the cash waqf model can be used to provide capital for the waqf bank.…”

Section: Application Of Waqf In a Contemporary Policy Frameworkmentioning

confidence: 99%

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Application of waqf for social and development finance

Shaikh

Ismail

Shafiai

2017

IJIF

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Purpose -This paper aims to discuss the application of waqf (endowment) in the social finance sector for funding social and development projects and services.Design/methodology/approach -The study is qualitative. It reviews literature and provides descriptive data to present its main idea.Findings -Most Muslim-majority countries are generally income-poor, and the governments are generally weak in their tax collection, effective governance and capacity for development spending. Private sector financial institutions are scarce and mostly cater to the people who can meet the income-based lending criteria. Thus, the institution of waqf can fill the gap as a social finance institution by providing intermediation services for effectively utilising perpetual social savings. Flexibility in the rules of waqf enables it to serve beneficiaries directly or through financial institutions and to provide a wide range of social services.Research limitations/implications -This conceptual research highlights the need and potential of waqf without discussing the regulatory and operational details of how to effectively institutionalize it in different regions.Practical implications -The institution of waqf can harness the potential of selfless charitable giving in an effective way for better economic impact in the targeted social segments of society.Originality value -The paper suggests the establishment of waqf-based training and vocational centres which will increase opportunities of self-employment and contribute in upward social mobility of beneficiaries.

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Section: Application Of Waqf In a Contemporary Policy Frameworkmentioning

confidence: 99%

Section: Application Of Waqf In a Contemporary Policy Frameworkmentioning

confidence: 99%

Application of waqf for social and development finance

Shaikh

Ismail

Shafiai

2017

IJIF

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“…for small-and medium-sized enterprises (Asmy, 2015;Lahsasna, 2010;Tohirin, 2010); for education (Aziz et al, 2013); for microfinance (Alpay and Haneef, 2015;Nadwi and Kroessin, 2013;Masyita, 2012;Ahmed, 2007;Zarka, 2007); for economic development (Ibrahim et al, 2013); for use by financial institutions (Haji Mohammad, 2011;Abdel Mohsin, 2007); for use by non-profit financial intermediaries (El-Gari, 2004); for poverty alleviation (Hassan and Ashraf, 2010); for microenterprises (Kahf, 2004;; and for health care services (Ahmed, 2013).…”

Section: Cash Waqfmentioning

confidence: 99%

Towards the establishment of cash waqf microfinance fund for refugees

Kachkar

2017

IJIF

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Purpose -This paper aims to propose cash waqf (endowment) to develop a conceptual model that can be utilised to extend microfinance for refugees.Design/methodology/approach -Qualitative method is used in this research. An extensive review of the literature has been conducted. Latest literature on refugees, microfinance has been critically examined beside the current cash waqf models.Findings -Empirical studies have shown that many refugees are equipped with marketable skills and talents that can be utilised to improve their socio-economic situations. The proposed modelcash waqf refugee microfinance fund (CWRMF)is structured to extend microfinance to potential refugee micro entrepreneurs. To address the lack of collateral, which is a requirement to gain any microfinance, CWRMF has been incorporated with a takaful unit (cooperation) by which refugees may guarantee each other. Additionally, the model has also been structured to address the challenge of sustainability of the institution that would provide microfinance. Hence, a reserve fund has also been integrated into the model.Practical implications -CWRMF represents a potential model to be implemented by humanitarian nongovernmental organisations (NGOs) and aid agencies to support livelihood of refugees in particular for Muslim refugees. Positive outcome is expected from the implementation of this model. This is because of the various advantages of microfinance programs not only on refugees but also on concerned NGOs, host populations and donor parties. Additionally, this paper is a set of primarily thoughts aims to open the door wider for more researchers to explore the potential of cash waqf as one of the instruments to finance refugee microenterprises and business activities.Originality/value -Recently cash waqf has been into several models for socio-economic development and poverty alleviation. This paper is proposing cash waqf as a source for a microfinance fund that can contribute in the improvement of socio-economic situations of millions of refugees around the world.

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“…The flexible nature of waqf entails not only innovative financial tools, but it also stretches to cover the functions of a full-fledged Islamic bank. In this regard, a proposal for a waqf-based social bank has been advanced (Mohammad, 2011). The proposed model of waqf-based social bank functions similarly to a full-fledged Islamic bank with the only difference that the profit of such a bank becomes part of the waqf (IRA, 2015).…”

Section: Waqf Bank: a Proposed Modelmentioning

confidence: 99%

“…The proposed model of waqf-based social bank functions similarly to a full-fledged Islamic bank with the only difference that the profit of such a bank becomes part of the waqf (IRA, 2015). The revenues of the proposed waqf bank, according to Mohammad (2011), would then be deployed to provide microfinancing to the poor and to meet the financial needs of existing awqāf.…”

Section: Waqf Bank: a Proposed Modelmentioning

confidence: 99%

Evolution in Waqf Jurisprudence and Islamic Financial Innovation

Abdullah¹

2018

JIMF

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This paper aims to analyse the evolutionary process in the jurisprudential structure of modern waqf (Islamic endowment) and underlines the scope of Islamic financial innovation through the mechanism of waqf. The paper proposes the innovative models of parallel waqf, waqf-based social and financial instruments, waqf-based ṣukūk, micro-takāful, and waqf-based commodity bank. The research adopts the qualitative approach and employs socio-legal research methodology for the analysis. The paper relies on desk-based research. Compared to the classical structure of waqf which was confined within the domain of a perpetual charitable institution, this paper finds that modern waqf has ushered in several new dimensions into its fold. Modern waqf is in the process of re-evolution. Waqf, in the current scenario, has evolved into a financial product, a property-conveyance tool, an instrument of contract, an investment tool, a risk mitigation mechanism and an incorporated entity. The scope of this paper is limited to analysing the jurisprudential evolution of waqf and its impact on the Islamic finance industry. It does not seek to discuss the overall role or impact of waqf on the society as a whole. This paper also does not endeavor to compare and contrast the mechanism and modalities of other philanthropic institutions vis-ā-vis waqf. This paper examines the jurisprudential underpinnings of waqf and their implications and applicability to the Islamic finance industry. The paper draws on the process of how the mechanism of waqf has already been employed to develop various innovative Islamic financial products and how this process can be a catalyst for further innovation in the Islamic finance industry. The main contribution of the paper is encapsulated in the analysis of how the jurisprudential structure of the modern waqf has been evolving in the last few decades to accommodate the modern needs of Islamic finance. It further enumerates a few innovative Islamic financial products which can be developed by exploiting the available flexibility in the evolved version of modern waqf.

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Towards an Islamic Social (Waqf) Bank

Cited by 34 publications

References 1 publication

Application of waqf for social and development finance

Application of waqf for social and development finance

Towards the establishment of cash waqf microfinance fund for refugees

Evolution in Waqf Jurisprudence and Islamic Financial Innovation

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