Browsing by Author "Olayemi, Abdul Azeez Maruf"

This thesis studies the Islamic Interbank Money market in Malaysia (IIMM) from the Shari'ah and legal point of view. The significance of the research can be viewed from the point of the criticism against the credibility of the market in terms of the Shari'ah compliance requirement. Another problem is the dearth of tradable instruments in the IIMM which culminates in the liquidity mismatch in the liquidity portfolios of the Islamic financial institutions. The scantiness of the instrument also poses challenges to the emerging jurisdictions of the Islamic banking across the globe as regards the best Islamic money market model that is worthy of adopting. The objective of this research is to contribute to the efforts towards the solving of the problems. Thus, as for the issue of the compliance of the Market with the Shari'ah principles, a jurisprudential study of the underlying contracts of the Modus Operandi of the market and that of the instruments was conducted. Therefore, the findings of the study show that there is a need for the Shari'ah adaptation of the underlying contracts of the Modus Operandi of the IIMM. However, as for the underlying contracts of the instruments of the IIMM, it is discovered that they are all Shari'ah compliant, given the fact that all the contracts are rooted in the literatures of Islamic jurisprudence, notwithstanding the divergence of opinions between the scholars of the notable schools of law, on some of the contracts. Moreover, as regards the matter of the inadequacy of tradable instruments, a proposal for the developing of Bay' al-Wafa' which is a sale contract under the Islamic commercial law as an instrument of the Islamic Interbank money market is made. Therefore, an instrument which is coined as Bay' al-Wafa' Repo (BW Repo-i) is proposed to be introduced into the Islamic Interbank money market. The proposition is the contribution of the current research to the subject of the IIMM. Finally, the study is a qualitative legal and jurisprudential research. It finally concluded that the Malaysian model of the Islamic Interbank money market can be adopted by other jurisdictions as the best practice model. This will be helpful to the existing jurisdictions that are confronted with the problem of Islamic money market and the emerging jurisdiction of Islamic banking and finance, due to its, viability, simplicity, sophistication and the Shari'ah compliant credibility.

The Nigerian insurance industries have introduced takaful (Islamic insurance) into its insurance market. This initiative is based on the apparent prospects for takaful operation in the country. The indicators of the prospects include the large Muslims population in the country who will prefer takaful to conventional insurance policies. Other indicators are the application of Islamic personal and criminal laws which are the branches of Islamic law in some of states of the country. However, the new takaful operation is being confronted with some problems. The main problem that is faced by the Nigerian takaful industry is the lack of a unified and reliable legal framework. Other problems are the lack of technical-know-how of the takaful operation and religious intolerance. This study addresses the problems that confront the Nigerian takaful operations. The study is a library based research. It relies on the available literatures on the subject of takaful, which are in both printed and electronic forms. The researcher at the course of the study discovered that, the Malaysian takaful industry is the most developed in the world. The industry developed through the country’s takaful legal framework. The framework is embodied in the takaful Act, 1984. The law is viable as it helps the country to develop its takaful operations rapidly. The researcher therefore, suggests the adoption of the Malaysian takaful framework as a model for the development of the Nigeria takaful framework. The researcher concluded that if Nigeria should adopt the Malaysian takaful framework, it will help to overcome the problems faced by the Nigerian takaful operations and it will accelerate the development of the industry, in the country, to the world standard.