Syari’ah Compliance and Lawful Profit Making Dilemma in Malaysian Islamic Banks

9 Pages Posted: 18 Aug 2016

See all articles by Waeibrorheem Waemustafa

Waeibrorheem Waemustafa

Universiti Utara Malaysia

Suriani Sukri

Universiti Malaysia Perlis - School of Business Innovation & Techno (PPIPT)

Date Written: August 16, 2016

Abstract

The significant roles of syari’ah and Islamic banking undeniably critical in order to ensure about compliances to the Islamic principle this in turn provide a very conclusive picture whether Islamic banks truly concerns about Islamic requirement when introducing any type of product that might have any significant effect on its marketability, however the terms used in Islamic banks currently are highly suspicious of being involved in unlawful practices as mentioned in the holy text Al-Quran, this has triggers the increased concerned about the strength of relationship between syari’ah compliance and profitability. The trade-off between profit and syari’ah compliance has remained one of very important issues which they must be addressed to ensure that Islamic banks are not only profit making financial institution but it also very concerns about the roles of Islam and the way that profit is gained to avoid making any profit that against the principle of syari’ah.

Keywords: Islamic banking, financing concept, profit and loss sharing, Maqasid al-syari’ah and theory of profit, Finance, Credit risk, Risk management, Islamic finance, Mudarabah, Murabahah, Musharakah

Suggested Citation

Waemustafa, Waeibrorheem and Sukri, Suriani, Syari’ah Compliance and Lawful Profit Making Dilemma in Malaysian Islamic Banks (August 16, 2016). Available at SSRN: https://ssrn.com/abstract=2824903 or http://dx.doi.org/10.2139/ssrn.2824903

Waeibrorheem Waemustafa (Contact Author)

Universiti Utara Malaysia ( email )

Sintok
COLGIS, UUM
Sintok, KY KEDAH DARUL 06010
Malaysia

Suriani Sukri

Universiti Malaysia Perlis - School of Business Innovation & Techno (PPIPT) ( email )

Perlis
Malaysia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
363
Abstract Views
1,475
rank
107,308
PlumX Metrics