Cash Waqf: An innovative instrument of personal Finance in Islamic Banking

Monzer Kahf, Amiirah Nabee Mohomed

Research output: Contribution to journalArticle

Abstract

Personal financing in the practice of Islamic banks refers to responding to cash provision or simply financing cash. From Shari'ah perspective, personal finance or giving loans is a benevolent provision that should not be offered by Islamic financial institutions for a profit. Different motives or factors affect demand for personal financing whether for individuals, corporates, financial institutions or governments and genuine needs for cash may arise under specific circumstances. Some needs which should be responded only by cash or cash loans cannot be financed against an increment, such as debt settlements or rollovers, for which the solution is the Cash Waqf-based instrument. This study investigated lending cash through operationalization of Cash Waqf fund as a non-profit based instrument for personal finance, especially for individuals, within a banking context. The dynamics of this Cash Waqf instrument's establishment and operational issues are discussed and its potential advantages and disadvantages are also examined.

Original languageEnglish
Pages (from-to)13-29
Number of pages17
JournalJournal of Islamic Economics, Banking and Finance
Volume13
Issue number3
Publication statusPublished - 1 Jul 2017

Fingerprint

banking
finance
loan
operationalization
debt
lending
indebtedness
bank
profit
demand
financing
Personal finance
Cash
Islamic banking
need

Keywords

  • Awqaf
  • Cash Waqf
  • Islamic banks
  • Islamic finance
  • Personal financing
  • Shari'ah

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Development

Cite this

Cash Waqf : An innovative instrument of personal Finance in Islamic Banking. / Kahf, Monzer; Mohomed, Amiirah Nabee.

In: Journal of Islamic Economics, Banking and Finance, Vol. 13, No. 3, 01.07.2017, p. 13-29.

Research output: Contribution to journalArticle

@article{f13a2aab6d15427db3f70c4d87164a26,
title = "Cash Waqf: An innovative instrument of personal Finance in Islamic Banking",
abstract = "Personal financing in the practice of Islamic banks refers to responding to cash provision or simply financing cash. From Shari'ah perspective, personal finance or giving loans is a benevolent provision that should not be offered by Islamic financial institutions for a profit. Different motives or factors affect demand for personal financing whether for individuals, corporates, financial institutions or governments and genuine needs for cash may arise under specific circumstances. Some needs which should be responded only by cash or cash loans cannot be financed against an increment, such as debt settlements or rollovers, for which the solution is the Cash Waqf-based instrument. This study investigated lending cash through operationalization of Cash Waqf fund as a non-profit based instrument for personal finance, especially for individuals, within a banking context. The dynamics of this Cash Waqf instrument's establishment and operational issues are discussed and its potential advantages and disadvantages are also examined.",
keywords = "Awqaf, Cash Waqf, Islamic banks, Islamic finance, Personal financing, Shari'ah",
author = "Monzer Kahf and Mohomed, {Amiirah Nabee}",
year = "2017",
month = "7",
day = "1",
language = "English",
volume = "13",
pages = "13--29",
journal = "Journal of Islamic Economics, Banking and Finance",
issn = "2070-4658",
publisher = "Islamic Bank Training and Research Academy",
number = "3",

}

TY - JOUR

T1 - Cash Waqf

T2 - An innovative instrument of personal Finance in Islamic Banking

AU - Kahf, Monzer

AU - Mohomed, Amiirah Nabee

PY - 2017/7/1

Y1 - 2017/7/1

N2 - Personal financing in the practice of Islamic banks refers to responding to cash provision or simply financing cash. From Shari'ah perspective, personal finance or giving loans is a benevolent provision that should not be offered by Islamic financial institutions for a profit. Different motives or factors affect demand for personal financing whether for individuals, corporates, financial institutions or governments and genuine needs for cash may arise under specific circumstances. Some needs which should be responded only by cash or cash loans cannot be financed against an increment, such as debt settlements or rollovers, for which the solution is the Cash Waqf-based instrument. This study investigated lending cash through operationalization of Cash Waqf fund as a non-profit based instrument for personal finance, especially for individuals, within a banking context. The dynamics of this Cash Waqf instrument's establishment and operational issues are discussed and its potential advantages and disadvantages are also examined.

AB - Personal financing in the practice of Islamic banks refers to responding to cash provision or simply financing cash. From Shari'ah perspective, personal finance or giving loans is a benevolent provision that should not be offered by Islamic financial institutions for a profit. Different motives or factors affect demand for personal financing whether for individuals, corporates, financial institutions or governments and genuine needs for cash may arise under specific circumstances. Some needs which should be responded only by cash or cash loans cannot be financed against an increment, such as debt settlements or rollovers, for which the solution is the Cash Waqf-based instrument. This study investigated lending cash through operationalization of Cash Waqf fund as a non-profit based instrument for personal finance, especially for individuals, within a banking context. The dynamics of this Cash Waqf instrument's establishment and operational issues are discussed and its potential advantages and disadvantages are also examined.

KW - Awqaf

KW - Cash Waqf

KW - Islamic banks

KW - Islamic finance

KW - Personal financing

KW - Shari'ah

UR - http://www.scopus.com/inward/record.url?scp=85034603309&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85034603309&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:85034603309

VL - 13

SP - 13

EP - 29

JO - Journal of Islamic Economics, Banking and Finance

JF - Journal of Islamic Economics, Banking and Finance

SN - 2070-4658

IS - 3

ER -