The application of Wadi‘ah contract by some financial institutions in Malaysia
Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major distinguish features which are: the motive is not profit making only rather see...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Center for Promoting Ideas (CPI)
2011
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/5701/ http://irep.iium.edu.my/5701/3/Microsoft_Word_-_ID_10298.pdf |
| _version_ | 1848776553248325632 |
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| author | Ibrahim, Ahmad Basri Mohd Noor, Azman |
| author_facet | Ibrahim, Ahmad Basri Mohd Noor, Azman |
| author_sort | Ibrahim, Ahmad Basri |
| building | IIUM Repository |
| collection | Online Access |
| description | Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit
making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major
distinguish features which are: the motive is not profit making only rather seeking the pleasure of Allah’s
mercy in the hereafter. The second feature is the use of asset backed-up transactions and profit distrubution
system as agreed at fore hand. These features manifested in the dealings of the Islamic Financial Institutions
(IFIs) established to excute the aims and objectives of Islam and Muslims as the vicegerent of Allah on earth
and one who are bound by injunctions in all their transactions. In order to achieve these objectives Islamic
banks have moved in an alternative bearing from the conventional banks in practices and brands of products.
One of these products is rebranding of the conventional savings account with the Wadi‘ah account. Therefore,
this paper aims at explaining the concept of wadi‘ah, the evidences of its legitimacy, conditions, prohibited
elements in this transaction, its types and how its application in some financial institutions in Malaysia.
Finally, we found out tha, modern wadi‘ah took a different shape from the original wadi‘ah. While original
wadi‘ah is based on Amanah (turst), contemporary wadi’ah is based on daman (liability) which is more or
less loan. |
| first_indexed | 2025-11-14T14:31:55Z |
| format | Article |
| id | iium-5701 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:31:55Z |
| publishDate | 2011 |
| publisher | Center for Promoting Ideas (CPI) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-57012011-11-21T23:37:25Z http://irep.iium.edu.my/5701/ The application of Wadi‘ah contract by some financial institutions in Malaysia Ibrahim, Ahmad Basri Mohd Noor, Azman BP1 Islam HG1501 Banking Islamic finance emancipated as a replacement for the conventional financial practices that aims only at profit making i.e. capitlist oriented finance. Although both are termed finance, but Islamic finance has two major distinguish features which are: the motive is not profit making only rather seeking the pleasure of Allah’s mercy in the hereafter. The second feature is the use of asset backed-up transactions and profit distrubution system as agreed at fore hand. These features manifested in the dealings of the Islamic Financial Institutions (IFIs) established to excute the aims and objectives of Islam and Muslims as the vicegerent of Allah on earth and one who are bound by injunctions in all their transactions. In order to achieve these objectives Islamic banks have moved in an alternative bearing from the conventional banks in practices and brands of products. One of these products is rebranding of the conventional savings account with the Wadi‘ah account. Therefore, this paper aims at explaining the concept of wadi‘ah, the evidences of its legitimacy, conditions, prohibited elements in this transaction, its types and how its application in some financial institutions in Malaysia. Finally, we found out tha, modern wadi‘ah took a different shape from the original wadi‘ah. While original wadi‘ah is based on Amanah (turst), contemporary wadi’ah is based on daman (liability) which is more or less loan. Center for Promoting Ideas (CPI) 2011-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5701/3/Microsoft_Word_-_ID_10298.pdf Ibrahim, Ahmad Basri and Mohd Noor, Azman (2011) The application of Wadi‘ah contract by some financial institutions in Malaysia. International Journal of Business and Social Science, 2 (3). pp. 255-264. ISSN 2219-6021 (O), 2219-1933 (P) http://www.ijbssnet.com/archive/252.html |
| spellingShingle | BP1 Islam HG1501 Banking Ibrahim, Ahmad Basri Mohd Noor, Azman The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title | The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title_full | The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title_fullStr | The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title_full_unstemmed | The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title_short | The application of Wadi‘ah contract by some financial institutions in Malaysia |
| title_sort | application of wadi‘ah contract by some financial institutions in malaysia |
| topic | BP1 Islam HG1501 Banking |
| url | http://irep.iium.edu.my/5701/ http://irep.iium.edu.my/5701/ http://irep.iium.edu.my/5701/3/Microsoft_Word_-_ID_10298.pdf |