INDONESIA - BANKING - This is the important role of Shariah scholars to Increase Economic

WWW.REPUBLIKA.CO.ID, JAKARTA - scholars have an important role to disseminate Islamic industry in Indonesia. Through socialization scholars hoped that the new industry for the rest of this corn can increase rapidly.
Unfortunately, very few scholars who understand very well about Islamic industry. This resulted in difficult clerical and tell people the importance of industry-related. "The role of scholars in the socialization of Islamic insurance is huge," said Chairman of the Economic Association of Indonesia I (IAEI), Agustianto, Friday (11/5).
It can not be ignored. Cleric is one of the spearheads the development of Islamic insurance in Indonesia. As stated in the hadith the Prophet, said Agus, that there are two important groups in society that if the group is good, then people would be good also. They are the government and clergy.  (source)

INDONESIA - BANKING - Islamic Banking: Professional or Islamic?

www.republika.co.id - The biggest fear when someone entered the institute sharia is Islam and he must have a certain fit Islamic values. Smelling things that Islam became one of the factors that make a person frustrated trying to challenge the Islamic financial industry.
The lack of knowledge of the sharia are also factors that make a person fail to be an employee of sharia industry. This lack of knowledge was a hardship for the company in developing the potential of employees in the Islamic industry.  (source)

SINGAPORE - OPINION - Loss-sharing is not sine qua non for Islamic finance

www.zawya.com - There remains a misconception amongst the masses that Islamic finance is essentially a system that shares the profit or the loss. In fact this is not the reality. Islamic finance involves different modes, out of which a few are profit sharing and/or profit and loss sharing. There are many other modes, where the question of sharing profit or bearing loss does not arise.

Even these, however, are rich in their respective virtues. Each of the modes of Islamic finance has got its own distinct characteristics in respect of modus operandi and principles. So whenever there is a contract (between two or more parties) under Islamic finance, none can insist on any party sharing profit or bearing loss unless the specific mode itself qualifies for such a provision. It is the mode of agreement that determines whether the contract can stipulate the provision of profit and loss sharing or not. (source)

MALAYSIA - REGULATIONS - Foreign Currency Trading

Foreign Currency Trading
Last Updated : 17 Feb 2012
Source By : www.bnm.gov.my

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FOREIGN CURRENCY TRADING

Bank Negara Malaysia wishes to inform the public that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks  and international Islamic banks as provided for under the Exchange Control Act 1953 and  with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011.

In addition, Shariah-compliant financial products, including foreign exchange related transactions, offered and transacted by licensed Islamic financial institutions are approved by the Shariah Committee of the respective financial institutions with endorsement from the Shariah Advisory Council of Bank Negara Malaysia.

Bank Negara Malaysia
16 February 2012

INDONESIA - REGULATIONS - Proposed Bank Syariah funds discussed DSN-MUI

WWW.REPUBLIKA.CO.ID, JAKARTA - Bank Syariah Fund proposal or Profit Equalization Reserve (PER) is now the middle of the Shariah Council of the National Assembly discussed Ulama Indonesia (DSN-MUI). Evaluated the proposed use of funds essential to encourage a more competitive product syariah bank.

Chief DSN-MUI, Ma'ruf Amien acknowledged that the proposed use of funds do not have a fatwa. But, he admitted, sharia banks urged to immediately realize the proposed use of funds.

"We will discuss in terms of how the fatwa, what should be a fatwa or not. This month we discuss," he said on Thursday (16/2). (source)

MALAYSIA - FIQH - Forex Trading 'Haram', Says National Fatwa Council

www.bernama.com - KOTA BAHARU, Feb 15 (Bernama) -- The National Fatwa Council today ruled that foreign exchange trading (forex trading) is forbidden (haram) for Muslims.

Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading is against Islamic law and creates confusion among Muslims.

"A study by the committee found that such trading involves currency speculation, which contradicts Islamic law. (source)

MALAYSIA - FIQH - Bank Negara, Fatwa Council Explains Foreign Currency Trading Status

www.bernama.com - KUALA LUMPUR, Feb 16 (Bernama) -- Bank Negara Malaysia clarified that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks as provided for under the Exchange Control Act 1953.

Such trading is also allowed with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011. (source)

INDONESIA - DISPUTE SETTLEMENT - Shariah Arbitration and Shariah Court should understand Islamic Finance Transactions in order to solve dispute

Jakarta (9/12)- Dispute settlement in Islamic finance institution is up until today is still become the main issue that need to be handled.  There is two ways of shariah dispute settlement one by the mediation thru the National Syariah Arbritrage ( BASYARNAS) and the shariah court, whereas the effectiveness is still under questions.

The former Director of  Investigation and Mediation of Indonesia’ Banking system   Purwantari Budiman said that the two shariah institutions, Basyarnas and syariah court, are not effectively handling the matter of Islamic finance dispute since both institutions lack of competency in Islamic finance transactions. “ when the dispute to be settled in Basyarnas, it will be difficult since the banking operations dispute will be handled by referring to fiqh (Islamic jurisprudence), it will be a deadlock, “ explained Purwantari during the refreshing program at refreshing program for finance and banking journalists at Lembaga Pengembangan Perbankan Indonesia (LPPI), last Thursday (8/12).  (source)

INDONESIA - FIQH - The results of disadvantaged Mudharabah Fix For Sharia Banks?

REPUBLIKA.CO.ID, JAKARTA - The Indonesian Council of Islamic Ulema Council (MUI DSN) to assess the discourse of Bank Indonesia to apply for a stable outcome mudaraba in Islamic banking industry must be in agreement with the customer.

This is expressed DSN MUI Chairman Ma'ruf Amin, when found Republika, Saturday (17 / 9). "If anyone was detained, there must be an agreement with them to agree or not," he asserted. (source)

WORLD - ARTICLES - Foundations of Forgiveness in Islamic Bankruptcy Law: Sources, Methodology, Diversity

Foundations of Forgiveness in Islamic Bankruptcy Law: Sources, Methodology, Diversity

Jason J. Kilborn
The John Marshall Law School; Radboud University Nijmegen

Abstract: This article provides a detailed examination of the structure, sources, and ultimate content of the Islamic law of distressed debt. With specific illustrations from the Qur'an, sunna, and fiqh (Islamic jurisprudence), it orients non-specialists on the path to understanding where Islamic law comes from, how it is structured, and what its most salient provisions say about the proper treatment of insolvent debtors. Tracing the various divisions within Islam on the proper identification of shari'a, this article reveals a rich tapestry of contrasting views among and within the shi'a and sunni doctrinal schools of thought. Both the original sources and the secondary juristic analyses of these sources struggle with a delicate balance between forcing debtors to pay their debts while enjoining creditors to be patient and forgiving with respect to distressed debtors. It is hoped that this detailed and sensitive discussion will enhance the increasingly frequent insolvency law reform conversations between Westerners and those in Muslim nations by encouraging the former to respectfully engage with classical Islamic sources and methods, as opposed to advancing arguments based merely on Western views of economic expediency, efficiency, and experience.(source)

REGULATIONS - AAOIFI - Shariah body issues 11 new standards

Dubai-based Shariah consultancy Minhaj Sharia’h Financial Advisory and Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOFI) have launched a set of 11 new Shariah standards that will help regional and global Islamic financial institutions tackle contemporary issues of banking, finance and investment.

FINANCE - Sharjah Islamic Bank launches 0% profit Hajj financing service

SHARJAH — Sharjah Islamic Bank, or SIB, has announced the launch of 0% profit financing service for Hajj 
under the theme “Perform Hajj this year and pay it off over the year with no profit”.