Publication:
Property rights and Shariah non-compliance risk
Abstract
This chapter attempts to argue that an organized effort to avoid such risks due to the financial infrastructure rigidities may invite non-compliance with shariah rules. This is due to the fact that the shariah requires Islamic financial institutions to take ownership of the goods it intends to sell as a fundamental principle in contract law and to move the title to the buying party once the sale is executed. Hence this chapter critically examines the concept of al-bay and property rights in Islam in relation to the constraints posed by the existing financial infrastructure, namely capital requirement and taxation, on the taking of risks by Islamic banks.
Keywords
Property rights , Shariah non-compliance risk
Citation
Rosly, Saiful Azhar. (2017). Property rights and Shariah non-compliance risk. In Mohamed Ariff & Shamsher Mohamad Ramadili Mohd. (Eds.), Islamic wealth management: theory and practice (pp. 83-102). Cheltenham, United Kingdom: Edward Elgar Publishing Limited.
Publisher
Edward Elgar Publishing Limited