THE IMPLEMENTATION OF IBRA’ IN ISLAMIC BANKING AND FINANCE: AN ANALYSIS IN TERMS OF BANKING OPERATIONS AND MAQASID AL-SHARI’AH

The concept of ibra’ in Islamic Law has normally been discussed and applied in issues regarding debts (duyun) and rights (huquq). Technically, ibra’ is defined as either “considering the money owed one to be a present to [the debtor]” (al-Khurashi, n.d, p.103), or “waiving the ownership that is owed one” (Ibn al-Humam, n.d., p. 389). In the context of Islamic banking and finance, ibra’ refers to granting ownership or waiving one’s right, partially or totally, to the debts for which another is liable.