Konsep Kontrak Pintar Dan Potensinya Terhadap Transaksi Pembiayaan Berasaskan Tawarruq

A contract is an important concept to enable a transaction without jeopardizing the rights and security of the transaction’s parties. Its implementation varies either through traditional or modern methods. To date, the smart contract gains attention among industry players and academicians. It is a modern technological innovation that can execute a contract by utilizing a blockchain network. In particular, the researchers view that smart contracts can be adapted in products offering based on various Shariah contracts in Islamic banking institutions, such as financing products based on the tawarruq contract. Nevertheless, it requires detailed research in terms of concept and structure to measure its potential to integrate with Islamic banking operations. Therefore, this study will examine the smart contract concept as well as identify its advantages for Islamic banking institutions’ operations, particularly in tawarruqbased financing products. A qualitative approach based on library studies concerning relevant documents and literature are implemented to achieve these objectives. The collected data were then analyzed using descriptive content analysis methods. The results found that the smart contract is a contract innovation based on blockchain technology that can implement tawarruq-based financing products terms automatically, decentralized, and distributed manner. Thus, its thorough implementation can reduce the risk of faults in transactions and potentially ensure the transparency of transactions’ is well-preserved. However, further research on the risks associated with this technology, especially Shariah risks, needs to be clarified before being fully integrated into Islamic banking operations.

Penerapan Hybrid Contract sebagai Inovasi pada Produk Pembiayaan Multijasa di Lembaga Keuangan Syariah

Rapid product development is carried out by Islamic Financial Institutions (LKS) in providing alternative services to the needs of the community which are carried out based on sharia principles. The development of these services is provided both in the form of banks and non-banks as well as in the form of storage or other types of services as well as in the form of financing. However, due to more complex customer needs, LKS requires innovation in order to get convenience in its operational activities. So, in innovating with hybrid contracts, it becomes an important thing. This research uses a literature study with a normative juridical approach, which is carried out by collecting, studying and reviewing books, scientific magazines and documents related to this research such as theses and scientific articles. The results of the study state that in the application of hybrid contracts in multi-service financing products at Islamic Financial Institutions (LKS) generally use ijarah contracts according to the DSN-MUI fatwa. In this case, if the LKS uses the ijarah contract, it must comply with the provisions of the fatwa as the service provider or the benefits obtained from the LKS. Meanwhile, if in a hybrid contract one or more contracts are added, in this case it is added with a wakalah contract, then the customer has the power to carry out his own costs. However, if there are customers who still have to pay ujrah for the ijarah contract, it is called usury. Because this is not justified in sharia principles and is not in accordance with the ijarah fatwa concerning the multiservice, the bank does not fulfill its service obligations as the fatwa regarding multiservice as well as the kafalah contract. Thus, there is an alternative in this multi-service financing, namely by using hawalah bil ujrah and wakalah contracts which are more flexible and their implementation as an innovation, namely combining these contracts with the aim of making banking operations easier, reaching wider and able to meet the needs of more customers.

Sharīʿah governance and agency dynamics of Islamic banking operations in the Kingdom of Saudi Arabia

PurposeThis study aims to investigate and point out the variations of agency theory in the context of Sharīʿah governance in Islamic banking operations in the Kingdom of Saudi Arabia (KSA).Design/methodology/approachThe study followed the approach of quantitative Corporate Governance Index (CGI) by computing the Gov-index (Gompers et al., 2003) and the Gov-score (Brown and Caylor, 2004; Saffieddine, 2009) to examine corporate governance (CG) issues using primary as well as secondary data. The primary data was generated from three full-fledged Islamic banks (IBs) and nine traditional banks with Islamic banking wings, all operating in the KSA. The approach was to provide an insight into the agency structure in the context of Islamic banking, which may lead to a trade-off between the conformity of Sharīʿah (Islamic law) rules and processes followed in safeguarding the rights of investors.FindingsThe majority of the Islamic banking services that are surveyed in this study acknowledge the significance of Sharīʿah governance and have implemented the fundamental methods, in conformity with this system. Certain flaws in Sharīʿah governance principles pertaining to audit, control and transparency are reported.Practical implicationsThe research outcomes will be invaluable to IBs aiming to improve existing SG practices. It also has implications for IB managers to design strategies while complying with regulations and to protect the interests of all investors without breaching the ethics of Sharīʿah.Originality/valueThis paper adds original value to the body of knowledge on agency relationship by analysing the dynamics of agency theory in the unique and complex context of Sharīʿah governance of IBs or those offering Islamic products in the KSA. The results can be used as a valuable feedback for improvement of Sharīʿah governance in the banking system in the KSA and the Gulf region at large.

Implementation of Internal Capital Adequacy and Assessment Process in Vietnamese Commercial Banks

The internal capital adequacy and assessment process (ICAAP) was first introduced in the second pillar of Basel II in 2004 to offset the deficiencies of Basel I and capital adequacy regulations in the first pillar of Basel II. This process is aimed at identifying and measuring risks generated in banks’ activities, and then provides the requirements for internal capital levels and methods to raise capital to deal with these risks. In fact, the implementation of Basel II and ICAAP in Vietnamese commercial banks has attained notable achievements, but it also revealed some major weaknesses. The purpose of this research is to evaluate the implementation of ICAAP in Vietnamese commercial banks in eight components of the ICAAP addressed by Basel II using the survey method and then to simulate the implementation of ICAAP in a Vietnamese commercial bank. From the facts and the simulation of the ICAAP framework in this study, the authors offer some suggestions for Vietnamese commercial banks to implement ICAAP effectively in their banking operations.

Relevant issues of conducting verification of reports on illegal banking operations

This article is dedicated to the issues of conducting audit pursuant to the Article 144 of the Criminal Procedure Code of the Russian Federation on report of crimes established by the Article 172 of the Criminal Code of the Russian Federation. Methodological framework for this research consists of dialectical, logical, and formal-legal methods; the normative framework is comprised of the Constitution of the Russian Federation, criminal and criminal procedure legislation of the Russian Federation, local normative acts that regulate the conduct of audit initiating at the stage of initiating a criminal case. Major attention is turned to the theoretical and applied issues associated with the initiation of criminal cases stipulated by the Article 172 of the Criminal Code of the Russian Federation. Analysis is conducted on the peculiarities of seizure of objects and documents on this category of crime; as well as on the goals, tasks, methods of seizure, and admissible procedural actions. The author examines the questions of admissibility of evidence received at the state of opening a criminal case, their role in subsequent stages of criminal proceedings. Assessment is given to the existing theoretical and practical views on the possibility of instituting a search and seizure prior to opening a criminal case. The author analyzes case law on the topic, and concludes on the need for further amendments. The importance of observing the rights and legitimate interests of individuals and companies in the course of pre-trial proceedings pertinent to the reports of illegal banking operations is substantiated. The author also indicates that arbitrary interference of law enforcement agencies in legitimate business activity is unacceptable.  

Theoretical Framework for Research on the Factors Affecting the Moral Hazard in Banking Operation

There are many types of risks related to banking operations such as credit risk, interest risk, operational risk. Problems related to moral hazard have led to considerable setbacks for the economy in general and banking system in particular. Besides, moral hazard is an economic and financial terminology and is used to denote the risk generated from the deterioration in ethical conduct. Hence, authors aim at reviewing theoretical framework for determinants impacting moral hazard in banks.

Comparison Analysis Of Camels And Rgec In Assessing The Level Of Health Of Bank (Case Study In Pt Bank Rakyat Indonesia (Persero), Tbk Period 2017-2019)

Bank soundness is the ability of a bank to carry out normal banking operations and is able to fulfill all of its obligations properly in ways that are in accordance with applicable regulations.This study aims to determine the comparison of the soundness level of the bank using the CAMELS method and the RGEC method at PT Bank Rakyat Indonesia (Persero), Tbk for the period 2017-2019. The type of data used is quantitative data and the data source used is secondary data.The results of this study indicate that (1) the soundness level of the bank at PT Bank Rakyat Indonesia (Persero), Tbk for the 2017-2019 period using the CAMELS method in the predicate "Very Healthy", (2) the soundness level of the bank at PT Bank Rakyat Indonesia (Persero), Tbk for the 2017-2019 period using the RGEC method in the predicate "Very Healthy", (3) comparison of the soundness of the bank at PT Bank Rakyat Indonesia (Persero), Tbk 2017-2019 period by using the CAMELS method and the RGEC method shows that there is no difference in the results of the analysis because the two methods both obtain the predicate "Very Healthy".

МИРОВОЙ РЫНОК БАНКОВСКИХ УСЛУГ С ТОЧКИ ЗРЕНИЯ ТЕОРИИ АСИММЕТРИЧНОЙ ИНФОРМАЦИИ

В сделан вывод относительно того, что рынок банковских услуг по своим параметрам и характеристикам правомерно относить к рынкам с асимметричной информацией, что проявляется: в неравноценном обеспечении активных и пассивных операций банка; различной правовой основе банковских операций; разных механизмах стоимостной оценки взаимных обязательств; асимметричной ликвидности кредитно-денежных операций; наличии интернальных эффектов. The article It is concluded, that the market of banking services on its parameters and characteristics legitimate to refer to the markets with asymmetric information, which manifests itself: in the unequal provision of active and passive operations of the bank; different legal basis of banking operations; different mechanisms for the valuation of mutual obligations; asymmetric liquidity monetary operations; the presence of Internal effects.

'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.