Islamic Financial System In Malaysia

1.0 INTRODUCTION

Islamic financial system are being developed in the implementation and practice in our country today .System Islamic finance in Malaysia accounted for Islamic banking, interbank money market, Islamic insurance, or takaful, Islamic capital markets and financial institutions that provided alternative sources of funding .

Islamic jurists consider seriously the core in the tradition Istinbat al-Ahkam (legal formulations) to address current issues such as the question of the driver legal-illegal, usury, gharar maslahah and maqasid syar`iyyah. However, in doing this, they are always taking a balanced approach between theoretical and practical aspects of compliance with Sharia principles and the `urf al-iqtisadiyyah (custom economic

Islamic banking system in Malaysia has gained wide recognition and become an example to the world, but also serve as a reference in other countries for the implementation of the Islamic banking system in their respective countries. Islamic banking, there has been giving users a variety of options in choosing instruments or products that have offered. Muslims today also have the option to choose a banking system that had been centered on the practice of usury to a system based on Islamic

This concept is known as bai 'inah. Normally this method is used in personal financing products. Conceptually, it has two contracts / covenants. First, is the contract of sale between the bank and the customer.

The bank will sell an asset to a customer with deferred (installment). Second, the contract to repurchase the asset sold to the customer. That is mean, the bank to buy back the asset at a price in cash.

There are some of the definitions of Bai `inah according to the scholars, first is the definition by Imam Shafi’. He said that Bai’ ‘Inah as "Buying an item from someone in debt, then after the item is received by him (qabdh), goods are resold to the original owners or to third parties either by cash prices that are lower or higher, or in debt or with exchange of goods. " While another jurist like Imam Al-Haskafi said that "Selling a delayed goods for profit. The debtor will resell it at a lower price in order to pay the debt "as the opinion for definition of this transaction.

According to Imam Al-Zaila`i,he has his own definition about Bai’ ‘inah. That is a transaction of "sell goods in installments, and buy it back at a lower price in