BBKI4103/MAY09/ASGMT-RR

ASSIGNMENT QUESTION

PURPOSES

The purpose of this assignment is to assess learners’ abilities to:

 explain the concept of Mudharabah;
 discuss how investment activities can be done without riba;
 apply the concept of Islamic finance to the following case;
 differentiate between Islamic and conventional financing; and
 analyse the operational issues of Islamic financing instruments based on Shariah
principles.

INSTRUCTIONS

Learners are required to explain and analyse the operational issues of Mudharabah as one of
the Islamic financial instruments.

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QUESTION 1

Vista Bank has introduced a new and innovative product in Islamic banking called Al-
Ameen. It is a Mudharabah-based investment account, with a profit-sharing ratio of 70:30
between bank and customer respectively. This innovative product also provides the
opportunity to its depositors to win a grand prize of RM100,000 cash through a quarterly
prize draw. With a minimum initial deposit of RM500 for 3 to 60 months tenure, the
depositors are eligible to enter the prize draw.

You are required to answer the following questions:

a) Based on your understanding of Mudharabah, explain how you think the concept is
applied in the Al-Ameen product.

(10)

b) As an account holder of Al-Ameen, you are eligible for a quarterly cash prize draw.
However, in this case there is an element of gharar (uncertainty) involved. Propose to
Vista Bank on how it can reduce the element of gharar in the draw.

(8)

c) Elaborate how Islamic banking transactions differ from those in conventional banking.

(12)

d) Discuss the norms of ethics and fairness that should be incorporated in Islamic financial
products.

(5)

[Total: 35 marks]

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SOALAN TUGASAN

TUJUAN

Tujuan tugasan ini adalah untuk menilai keupayaan pelajar untuk:

 menerangkan konsep Mudharabah;
 membincangkan bagaimana aktiviti pelaburan boleh dilaksanakan tanpa riba;
 mengaplikasikan konsep kewangan Islam kepada kes berikut;
 membezakan antara pembiayaan secara Islam dengan konvensional; dan
 menganalisis isu operasi pembiayaan kewangan Islam yang berasaskan prinsip
Shariah.

ARAHAN

Pelajar dikehendaki menerangkan dan menganalisis isu operasi Mudharabah yang merupakan
salah satu daripada instrumen kewangan Islam.

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SOALAN 1

Bank Vista telah memperkenalkan satu produk baru dan inovatif dalam perbankan Islam yang
dikenali sebagai Al-Ameen. Ia adalah satu akaun pelaburan berasaskan Mudharabah, dengan
nisbah perkongsian keuntungan sebanyak 70:30 antara bank dengan pelanggan masing-
masing. Produk inovatif ini turut memberikan peluang kepada pendepositnya untuk
memenangi hadiah utama sebanyak RM100,000 tunai melalui cabutan hadiah pada setiap
suku tahunan. Dengan deposit permulaan minimum sebanyak RM500 bagi tempoh pegangan
3 hingga 60 bulan, pendeposit layak menyertai cabutan hadiah berkenaan.

Anda dikehendaki menjawab soalan berikut:

a) Berdasarkan pemahaman anda tentang Mudharabah, terangkan bagaimana konsep

berkenaan diaplikasikan pada produk Al-Ameen.

b) Sebagai pemegang akaun Al-Ameen, anda layak untuk cabutan hadiah tunai suku
tahunan. Walau bagaimanapun, dalam kes ini terdapat elemen gharar (ketidakpastian)
yang terlibat. Cadangkan kepada Bank Vista cara untuk mengurangkan elemen gharar
dalam cabutan berkenaan.

c) Huraikan bagaimana transaksi perbankan Islam berbeza daripada transaksi perbankan

konvensional.

d) Bincangkan norma bagi etika dan kesaksamaan yang harus digabungkan dalam produk
kewangan Islam.

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GUIDE FOR ANSWERING ASSIGNMENT QUESTIONS

a. Guide

The aim of this assignment is to test your understanding on the issues and problems in

Islamic financial management. Furthermore, it also aims to discuss the implementation of

Islamic banking financing products; in this case a Mudharabah-based investment account.

You also need to understand the product identified and discuss relevant issues involving

uncertainty and gambling issues that relates to the ethics and norms in Islamic financial

system.

Your assignment should be presented / prepared in an essay form. Please write the

references according to formal academic writing. Any additional information or data

related to this assignment should be attached at the end of the page. Kindly ensure that

this assignment is your own personal work and no elements of plagiarism are allowed.

b. References

Basic concepts of Islamic financial management can be found in the OUM module as
well as other reference books, articles and journals.

c. Important Topics

 Topic 1 Introduction to Islamic Finance

 Topic 2 Introduction to Riba

 Topic 3 Islamic Financing Instrument

 Topic 5 Shirkah