Tuesday, November 11, 2008

ISRA: Initiative to promote consistent application of Islamic financial contracts

Bank Negara Malaysia (BNM) has embarked on an initiative to promote a more consistent application of Islamic financial contracts and greater standardisation of Islamic financial practices known as the "Shariah Parameters" project.
"It is expected to be issued in the first quarter of 2009," BNM governor Tan Sri Dr Zeti Akhtar Aziz she said at the launch of the International Shariah Research Academy in Kuala Lumpur yesterday. The initiative aims to determine the essential features of Islamic financial products derived from underlying shariah contracts such as the murabahah, istisna', mudarabah, musharakah, ijarah and wadi'ah.
These features will serve as a guide for the application of the shariah contracts for the Islamic financial products. These products which can be applied when designing new products or for the enhancement of existing products.
The Shariah Parameters, once promulgated, would be a standardised point of reference for the practices adopted by Islamic financial institutions, Islamic finance professionals and practitioners in entering Islamic financial contracts. — Bernama

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