A few methods in charging fees for kafalah bank guarantee-i among Islamic banks in Malaysia

• Main Authors: Syed Alwi, Sharifah Faigah, Ibrahim, Uzaimah, Md. Sawari, Mohd. Fuad
• Format: Article
• Language: English; English
• Published: International Shari'ah Research Academy for Islamic Finance (ISRA) 2014
• Subjects: BP140 Islamic law (Fiqh); HG Finance; HG1501 Banking
• Online Access: http://irep.iium.edu.my/40186/1/Kafalah_Bank_Guarantee-i.pdf; http://irep.iium.edu.my/40186/4/Kafalah_Bank_Guarantee-i.unlocked.pdf; http://irep.iium.edu.my/40186/; http://www.ifikr.isra.my/web/guest/publication

Kafalah (guarantee) is generally considered as a tabarru' (gratuitous gift) act, and the majority of past Muslim jurists held the opinion that imposing ujrah (fee) on Kafalah is not allowed; however some contemporary jurists have allowed it. Islamic banks in Malaysia offer Bank Guarantee-i (BG-...