debt

25 Dec 22

The Impact of Inflation

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power of money. Inflation has a significant impact on the […]
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08 Jul 21

Asset, Service, Right or Debt? | Fiqh Series

This article is part of our Fiqh blog series which aims to discuss more advanced subjects relating to Islamic Finance and Fiqh al-Mu’amalat. This blog piece addresses the different types of subject matters that are traded and transacted. Introduction One of the fundamental tasks in any Shariah review or Shariah product development is to understand […]
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26 Feb 21

Treatment of Surplus from Sale of a Collateralised Asset

QUESTION How should surplus from the sale of collateral? ANSWER In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Any surplus proceeds in excess of an outstanding debt realised from the sale of a collaterised asset must be returned to the debtor. The Fiqh (jurisprudence of the […]
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03 Jan 21

The Obsession with Possession in Islamic Finance

In almost all contemporary Islamic Finance structures and products, a fair amount of attention is given to how assets are being possessed, transferred and how the associated risks are being allocated. Similarly, retail investments are vetted and screened to understand whether an investor has possession of the underlying asset. What’s the big deal and obsession […]
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