The Shariah Governance Policy of Bank Negara Malaysia (SGP of BNM) has recognised the Sharīʿah committee as the responsible function to provide objective and sound advice to an Islamic financial institution. Accordingly, MBSB Bank has established its Shariah Advisory Committee (SAC) to ensure that its aims and operations, business, affairs and activities are in compliance with the Sharīʿah, as stipulated in Paragraph 10.2 of the SGP of BNM. Since its establishment in 2018, the SAC of MBSB Bank has deliberated various issues relating to Sharīʿah parameters, products, marketing strategies, campaigns and other matters pertinent to MBSB Bank, and henceforth, it issued its resolutions.
The SAC of MBSB Bank has adopted three key approaches in its Sharīʿah decision-making process, namely:
1. Taṣawwur: to have a complete understanding, full knowledge and adequate details of the issues raised by the stakeholders;
2. Takyīf: to classify the issues in terms of the existing fiqhī categories and ascertain the opinions relevant to them; and
3. Iʿtibār al-maʾālāt: to consider the effects of the resolution that will be issued in achieving the objectives of the Sharīʿah (maqāṣid al-Sharīʿah).
This publication, which contains 23 selected resolutions of a general nature issued from 2018 until 2021, provides illustrative cases that highlight the rigorous thought process undertaken and the considerations weighed in arriving at any Sharīʿah resolution. By showcasing these resolutions, we aim to provide readers with an understanding of MBSB Bank’s commitment to adhering to Sharīʿah principles and promoting transparency. They are intended to have educational value and also provide practical guidance to a wider audience of diverse backgrounds including industry practitioners, academicians, students and the public who are interested in understanding Islamic finance.
It should be noted that, apart from the resolutions featured in this publication, the staff of MBSB Bank shall also refer to the following primary sources in the business operations:
1. Unpublished resolutions of MBSB Bank; and
2. Resolutions issued by the Shariah Advisory Council of Bank Negara Malaysia and Shariah Advisory Council of Securities Commission Malaysia.
The information contained in this publication is provided as a reference by the Shariah Division of MBSB Bank for general guidance. It is not intended to replace or serve as a substitute for any audit, advisory or other professional advice, consultation or service. The SAC of MBSB (via the Shariah Division) should be consulted for advice concerning specific Sharīʿah matters before undertaking any Sharīʿah-related decision.
This booklet comprises six parts, namely:
Part 1: Deposit Products
Part 2: Financing Products
Part 3: Fees and Charges
Part 4: Moratorium and the COVID-19 Pandemic
Part 5: Islamic Money Market and Islamic Capital Market
Part 6: Other Issues
