Islamic Banking Transaction and Social Based Crowdfunding During Pandemic: Shariah Analysis on Islamic Financial and Non-Financial Institutions Approaches
Keywords:
Islamic Banking Transaction, Social Based Crowfunding, Pandemic, Shariah Perspectives, Institutional Approach.Abstract
This paper is based on an ongoing study titled "Social Based - Crowd Funding in Battling Covid - 19 and Maqasid Shariah: Some Legal and Shariah Observations in Malaysia and Indonesia." The COVID-19 pandemic has been one of the most serious health crises since the turn of the century. The corona pandemic has presented Islamic banks with significant challenges in dealing with this pandemic, taking into account, on the one hand, its impact on various economic sectors and regulatory authorities' decisions. However, it appears that Islamic financial institutions are at odds over how to handle Islamic banking transactions, particularly a moratorium between the bank and their clients during the pandemic, as well as the use of social-based crowdfunding activities. This investigation begins with a historical pandemic that afflicted the entire world. The purpose of this paper is to examine the position of Islamic banking transactions and social-based crowdfunding during the pandemic from a Shariah standpoint. This paper also highlights Malaysia's Islamic banking approach to social based financing and social based crowd funding by financial and non-financial institutions during the pandemic. The qualitative research method was used in this paper, which included a library-based research method. A descriptive content analysis method will be used to analyse the data. This paper is significant in that it will add to the body of knowledge and literature on the subject while also providing Shariah's perspective on the status of Shariah's commercial and socially based crowdfunding contracts. The principles of adl and Ihsan appear to have been
applied, affecting Islamic banking commercial transactions and social-based crowdfunding contracts. During a pandemic, however, there is a need to strike a balance between the financial stability of the financial institution and the needs of society as a whole. As a result, Shariah parameters must be developed in such a way that financial institutions understand how Islamic commercial transactions and socially based crowdfunding should be treated, particularly during a pandemic.
Downloads
References
Al Amaren, E.M. and R. Indriyani, Appraising the Law of Wills in a Contract. Hang Tuah Law Journal, 2019. 3(1): p. 46-58 DOI: https://doi.org/10.30649/htlj.v3i1.107.
Albzeirat, M.K., et al., COVID-19 story the unknown killer and future studies. International Journal of Multidisciplinary Sciences and Advanced Technology. Special Issue Covid-19, 2020. 1(1): p. 1- 18.
Aum, S., S.Y.T. Lee, and Y. Shin, Covid-19 doesn’t need lockdowns to destroy jobs: The effect of local outbreaks in korea. Labour Economics, 2021. 70: p. 101993 DOI: https://doi.org/10.1016/j.labeco.2021.101993.
Nor, M.Z.M. Cross-country analysis of Islamic finance dispute resolution: Malaysia and Saudi Arabia. IEEE DOI: https://doi.org/10.1109/ICIMTR.2012.6236405.
Nor, M.Z.M., The Joint Roles of the Executive Governmental Functionaries in Enhancing the Islamic Economics System. Advanced Science Letters, 2017. 23(4): p. 3218-3221 DOI: https://doi.org/10.1166/asl.2017.7718.
Nurfalah, I. and A.S. Rusydiana, THE REGIME SWITCHING OF CYCLE INSTABILITY OF ISLAMIC BANKING AND THE ECONOMY: EVIDENCE FROM INDONESIA, MALAYSIA, AND PAKISTAN. Journal of Islamic Monetary Economics and Finance, 2021. 7(2): p. 233-262 DOI: https://doi.org/10.21098/jimf.v7i2.1362.
Saiti, B., O.I. Bacha, and M. Masih, Testing the conventional and Islamic financial market contagion: evidence from wavelet analysis. Emerging Markets Finance and Trade, 2016. 52(8): p. 1832-1849 DOI: https://doi.org/10.1080/1540496X.2015.1087784.
Shaharuddin, A., Do Islamic Banks Act ‘Islamic’During COVID-19 Pandemic? The Journal of Muamalat and Islamic Finance Research, 2020: p. 3-12 DOI: https://doi.org/10.33102/jmifr.v17i3.279.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
