sistim keuangan islam

Sources of Fund in Islamic Financial System

      As far as sources of fund are concerned, the bank can raise its initial equity (or paid-up capital) in straight forward way through the Islamic equity-financing contract of al-musharakah among its initial shareholders. In the case of SP TF banks, the contributors would be the main banks which shall provide the paid-up capital either on the basis of mudarabah, musharakah or qard hasan respectively. The public could also be the contributors through saving accounts, current accounts and investment accounts respectively. While the first two accounts are basically based on the Islamic contract of wadi'ah yad dhamanah (safe custody based on suretyship), the third account is originated from al-mudarabah contract. In short, the sources of fund for interest-free banks may come from these means which are as follows; shareholders equity, customers' deposit in current account, customers' deposit in savings account, customers' deposit in general investment accounts and customers' deposit in special investment accounts.

As mentioned elsewhere, it is not the institution which distinguishes Islamic financial system from the conventional one it is rather the functions and way they are performed that make the Islamic financial system distinct. Interestingly, deposit taking is one of the sources of fund in the Islamic financial system but the institutions do not pay any interest on the money deposited at the bank. Under the conventional system, the nature of the contractual legal relationship in the sense that the bank is the debtor and the customer is the creditor. However, under Islamic financial system, particularly in Malaysia, the Islamic banks/counters accept deposit for both saving and current accounts under the contract of wadi'ah (safe-custody) coined together with another contract, namely dhaman (surety ship) contract. Ultimately, the accounts are opened under the purview of the contract of Wadi'ah Yad Dhamanah (safekeeping with guarantee).

The very essence of Wadi'ah Yad Dhamanah is that the custodian (the bank) would be able to utilize the money deposited since the custodian would be solely held liable for any damage inflicts on the deposited item. On the other hand, the depositors are given the assurance that they may withdraw their money at any time and above all, their money will be guaranteed from any damage and the like. Also, adopting this approach would entitle the banks to reward their depositors a discretionary reward i.e. hibah. The practice of awarding a hibah to depositors is deemed necessary as interest-free-banking system is operating in a dual banking system and therefore, it needs to be competitive with the conventional banking environment. However, interest-free banks are not allowed to declare nor to promise any amount or rate of hibah up-front as this would be tantamount to riba.

     Also, Islamic financial system accepts deposit from the public and private sectors under the contract of mudarabah (profit and loss sharing). This contract is the basis of both General Investment Account and Specific Investment Account. While in the former type of account, the investment project is not defined; the investment project is defined in the latter. Also, the ratio of profit distribution is normally fixed in the former whereas in the latter, this may be usually individually negotiated. The contract of mudarabah is a kind of partnership where one party provides the capital and the other provides the work and management. As in the case of Islamic financial system, the customers or depositors are the investors who provide the capital while the bank act as the manager to convert the capital to profit. The profit, if any will be shared between the two parties based on certain ratio or percentage agreed upon in advance. However, in the event of a loss in the investment, the customers/investors bear all the loss as the manager will lose his time, effort and expected profit.