N O R S I T I A I S YA H B I N T I A N U A R ( I 1 9 3 0 4 1 7 0 )

N U R F I T R I A H AT I K A H B I N T I Z A H A R U D I N ( I 1 9 2 0 3 9 1 8 )

CHAPTER 5 & 6:
DEPOSIT &
LEADING
MANAGEMENT
AG E N DA
 INTRO

3 P R E S E N TAT I O N T I T L E
 DEFERRED
D E LIV E RY S A LE
( S A L A M ) FA C I L I T Y

 A salam deffered delivery contract.

 It is essentially a forward agreement where

P R E S E N TAT I O N T I T L E
delivery occurs at a future date in exchange for
spot payment of price.

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 MANUFACTURE-SALE (ISTISNA’) FACILITY

 An Istisna is a contract of manufacture.

 A seller under an istisna’ agreement undertakes to

develop or manufacture a commodity with clear

P R E S E N TAT I O N T I T L E
specifications for an agreed period of time.

 Istisna’ facility is suitable for commercial or residential

buildings, industries, roads, aircraft, vessels and so on.

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RECURRING
SALE  Under istijrar, the buyer purchases different
(ISTIJRAR) quantities of a given commodity from a single seller
FA C I L I T Y over a period of time. In other words, the seller
delivers the total quantity of commodity purchased
on installments. There is some divergence of views

P R E S E N TAT I O N T I T L E
regarding timing of fixation and payment of price.

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BENEVOLENT LOAN
( Q A R D ) FA C I L I T Y
 This is the simple of all financing schemes.

 Under this schemes, a borrower in need of a

specific amount of funds borrows the same from
a lender as qard hassan with or without a clear

P R E S E N TAT I O N T I T L E
stipulation regarding the maturity date. The loan
is repaid on maturity without an increment or
interest. When no maturity is stipulated, the loan
is repaid when asked by the lender, again without
any increment.

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 REPURCHASE (BAI AL INAH)

 The first and a very popular mechanism used by Islamic Banks in South East
Asian countries is based on repurchased or bai al inah.

P R E S E N TAT I O N T I T L E
 A murabahah can change into bai al inah if the identity of the vendor is not
different from its client, when the banks purchases a commodity from its client on
a spot basis and sells it back to the client at a cost plus price and on a deffered
basis.

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 BILL DISCOUNTING /
FA C T O R I N G ( B AY A L - D AY N )

 Discounting bills of exchange is quite common place is conventional banking.

 A bills of exchanged originates with sale or purchase. The seller draws a bill of exchanges asking the buyer to pay a certain
amount (value of purchase plus interest) after a certain time period called maturity. When the buyer accepts the bill of exchanges,
it becomes a valid financial instrument that can be traded in the market.

P R E S E N TAT I O N T I T L E
 Another similar financial product that involves bai al-dayn is factoring in which a company transfers its selected accounts
receivables to bank (factor). The bank is now assigned the accounts receivables and entrusted with the task of collecting the
receivables. Against these receivables, the banks provides financing.

 While an Islamic bank may legitimately charge a fee for its collection activities, it cannot accept interest on the loan extended.

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T R I PA R T I T E
( TA W A R R U Q )  Tawarruq is another financing product that is cited as a classic case

FA C I L I T Y
of hiyal or legal but has been permitted by mainstream scholars
under certain conditions.

 Tawarruq becomes a source funds by combining two separate sale

and purchase transactions.

 An individual in need of funds purchases a commodity on a

deffered payment basis from a seller and then sells the sam in the

P R E S E N TAT I O N T I T L E
market in order to realize cash. This is considered a hiyal, since the
individual concerned has no real intention of buying or selling the
commodity. He engages in these purchase and sale transactions for
realization of cash.

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 T H A N K YO U

11 P R E S E N TAT I O N T I T L E