Sakti, Muhammad Rizky Prima and Syahid, Ahmad and Tareq, Mohammad Ali and Mahdzir, Akbariah Mohd,(2016), Shari’ah issues, challenges, and prospects for Islamic derivatives: a qualitative study. , Qualitative Research in Financial Markets, UNSPECIFIED
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Abstract
Purpose – The purpose of this study is to investigate shari’ah scholars’ views and experiences
pertaining the shari’ah issues, challenges and prospects in Islamic derivatives. Specifically, this paper
critically examines the criticisms toward conventional derivative instruments and the controversies
surrounding underlying contracts and current Islamic derivative products.
Design/methodology/approach – This study uses qualitative methods to form a deeper
understanding of shari’ah scholars’ perception and experience on Islamic derivatives. Semi-structured
interviews were conducted with five shari’ah scholars who are currently working in Islamic financial
institutions in Malaysia and Singapore. This study used phenomenological techniques for its data analysis.
Findings – This study has found that shari’ah scholars are aware of the shari’ah issues surrounding
Islamic derivatives and have provided comprehensive insight on the solution to these issues. It was
found that it is important to take into account the derivatives instruments in Islamic financial industry
because of the need for hedging and risk mitigation within Islamic financial institutions. Nonetheless,
the study has also found that the use of wa’ad contracts to structure Islamic profit rate swaps and
foreign currency exchanges are problematic because of it having features of bay’ al-kali’ bil-kali (the sale
of one debt for another).
Originality/value – This study is one of few studies that highlight the shari’ah issues of Islamic
derivatives in Islamic banking and finance industry. This paper is of value in discussing risk management
and Islamic derivatives in Islamic financial institutions and how there are many issues under the
investigation process, particularly issues related
Keywords : | Qualitative, Malaysia, Singapore, Risk management, Shari’ah, Islamic derivatives, UNSPECIFIED |
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Journal or Publication Title: | Qualitative Research in Financial Markets |
Volume: | 8 |
Number: | 2 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 26 Dec 2019 07:42 |
Last Modified: | 26 Dec 2019 07:42 |
URI: | https://repofeb.undip.ac.id/id/eprint/905 |