Article
Version 1
Preserved in Portico This version is not peer-reviewed
Towards Shari‘ah Compliant Waqf Bank
Version 1
: Received: 13 February 2020 / Approved: 14 February 2020 / Online: 14 February 2020 (09:20:16 CET)
A peer-reviewed article of this Preprint also exists.
Gabil, H.; Bensaid, B.; Tayachi, T.; Jamaldeen, F. The Need for Shari’ah-Compliant Awqāf Banks. J. Risk Financial Manag. 2020, 13, 76. Gabil, H.; Bensaid, B.; Tayachi, T.; Jamaldeen, F. The Need for Shari’ah-Compliant Awqāf Banks. J. Risk Financial Manag. 2020, 13, 76.
Abstract
Bridging widening socioeconomic gaps calls for a paradigm shift and the use of effective strategies such as Waqf banks to develop and provide basic services and such as education, shelter, employment opportunities and social amenities to the poor, while reducing the state’s burden and working to constructively address the reasons for the gap. Waqf banks are set-up through the use of cash waqfs and would operate multiple waqf funds alongside an assortment of financial instruments. Their earnings however are issued as low-cost credits to the poor, economically disadvantaged and the underprivileged regardless of their financial status, instead of focusing exclusively on generating shareholder profits. This would significantly aid the economy in steady, sustainable growth; effectively raising the lower bar on per capita income and lifting untold multitudes out of poverty. This study explores how interest-free and affordable loans can be provided to the poor or lower income demographics, while further discussing bank structures such as Shari‘ah compliance, services rendering, investment and waqf distribution. This study shows that there is a need for Shari’ah compliant waqf banks which in addition to providing services for beneficiaries, would also effectively manage investment and waqf funds that contribute to overall national development and economic growth. This inquiry would be of high relevance to experts, financial managers, regulators and policy makers in the fields of waqf, banking and finance.
Keywords
Waqf bank; Cash Waqf; Waqf management; Islamic Endowment
Subject
Business, Economics and Management, Finance
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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