group 8 riba

8/19/2019 Group 8 Riba

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FULL NOTE RIBA

DEFINITION• Riba is the derived from the arabic word that means extra (Al-Ziadah!" develo#in$ (An-N%w%m!" increased (Al-Iftifa!

• In means addition" increase

• Riba literall means to increased" to $row" to rise" to add& It is however" not ever increase or $rowth which has been #rohibited b islam&

• Riba technicall refers to the #remi%m that m%st be #aid b the borrower to the lender alon$ with the #rinci#le amo%nt as a condition for

the loan or for an extension in its mat%rit&

T'E) OF RI*A

+& Riba d%%n

• Riba ,ard

• Riba ahiliah

.& Riba b%%

• Riba Nasiah

• Riba Fadhl

RIBA DUYUN / Riba o%t of lendin$ and borrowin$& This 0ind of riba is the extra amo%nt of mone over and above the #rinci#al of the loan

either 1

Im#osed b the lender on the borrower in the contract or #romised b the borrower in the contract&

• Riba ,ardh

Riba is im#osed or #romised from the be$innin$&E&$&1 interest stated in loan contract

• Riba ahiliah

There is no riba at the be$innin$" riba is im#osed onl after defa%lt&

E&$&1 interest in credit card transactions d%e to the dela in the re#ament&


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RIBA BUYU / riba in trandin$ transactions& This 0ind of riba ma occ%r o%t of an exchan$e between two ribawi materials of the same 0ind

where the necessar r%le(s! are not observed&

• Riba al-Fadl

The ribawi materials (of the same basis and the same 0ind! exchan$e are of defferent wei$ht" meas%rements or n%mbers and the are

exchan$ed at the same time&• Riba al-Nasiah

The ribawi materials exchan$ed are of e2%al wei$hts" meas%rements or n%mbers b%t #ament of the #rice and deliver of the $oods are

made at two different times&

EVIDENCE

Al-Quran

Al-*a2arah1 .34


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Hadith1

From abir1 The ro#het saw c%rsed the receiver and the #aer of %s%r" the one who records it and the two witnesses to the transaction and said1

5The are all ali0e (in $%ilt and sin!&

From Abi )aid al-6h%dri1 The ro#het saw said1 $old for $old" silver for silver" wheat for wheat" barle for barle" dates for dates" salt for salt"

li0e for li0e" and hand to hand& 7hoever #as more or ta0es more has ind%l$ed in riba& Ta0e ta0er and the $iver are ali0e (in $%ilt!&

RIBAWI ITEMS

8ommodit 9one: 8%rrenc1

• ;old

• )ilver

• 8%rrenc


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Foodst%ff1

• 7heat

• *arle

• Dates

•

)alt

RULE CONCERNIN RIBA (r%le of exchan$e for ribawi materials!


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THE RATIONAL BEHIND THE !ROHIBITION OF RIBA

• *arter sstem is not so favo%rable from the )hariah #oint of view&

• The im#act of riba is on the societ at lar$e com#ared to other crimes #rescribed in h%d%d which im#act are restricted to onl a few of

#eo#le&

• It is a clear b%rden on the borrower& In an circ%mstances" he is obli$ed to re#a the #rinci#al and interest char$e (9one rentin$!&

9one and time cannot $row b themselves&• Riba is the main #%shin$ factor for the #eo#le with s%r#l%s of mone to lend their mone o%t to the deficit %nits in the econom&


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• )ec%rit oriented vs ;rowth oriented& Interest-based sstem is not for the #oor #arties with #oor creditworthiness&


• Ine2%alit in loan distrib%tion ma0es the rich becomes richer and the #oor becomes #oorer&

• Interest-based sstem im#ends the innovations amon$st the small-scale enter#rises #artic%larl&

• 7ealth creation and transfer1 Riba activities do not create a new stoc0 of wealth&

• *orrowers are not ex#osed to an ris0 (exce#t credit ris0 - does not commens%rate the #rofit made!&

• 9one is considered as commodit is an interest-based sstem and s%b=ect to the law of demand and s%##l (Allowin$ s#ec%lation on

mone!&

• Interest is a com#onent of costs in an interest-based sstem&

RIBA IN A MODERN FINANCIAL INSTITUTION

8har$in$ Interest In The *an0in$ )ector • rohibition of riba wo%ld safe$%ard the interest of both financial instit%tion and c%stomer • In case of mone de#osits in savin$s acco%nts or fixed de#osits" the interest is %nfair beca%se of1

*an0s1

8onventional *an01 Obli$ed to #a interest to the de#ositor which is more than the #rinci#al amo%nt de#osited

Islamic *an0s1 rofit wo%ld be $iven to the de#ositor onl if ban0 ma0e #rofit& If the are ma0in$ losses" the are not com#elled

to #a an amo%nt of #rofit

8%stomers1

8onventional *an01 8%stomers wo%ld be de#rived from the hi$h #rofit $ained b ban0 even tho%$h the are $%aranteed someform of fixed income (interest!" it is rather small com#ared to the h%$e #rofit $ained b the ban0s&

Islamic *an01 If ban0 ma0in$ h%$e #rofits for a certain #eriod" de#ositor wo%ld be $iven a fair share of #rofit based on a$reed

#ro#ortion


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!r"hi#iti"n "$ Ri#a al-Fadl%

•

To ban an form of %nfair trade #ractices from the b%siness societ / %nfair #ractice in barter transaction&• The ro#het saw was act%all trin$ to disco%ra$e barter tradin$ and $rad%all eliminate barter sstem while s%$$estin$ a better and =%st

monetar sstem %sin$ c%rrenc&

TIME VALUE OF MONEY

• Time >al%e of 9one in T>9 Islam Economic ers#ective1

The conce#t of T>9 is a f%ndamental conce#t in finance& The draft concl%ded that mone toda is more val%able than mone in the

f%t%re& One million r%#iah toda have a val%e of more than one million R9 in the f%t%re &

Th'r' ar' ( )ain r'a*"n* +h, at l'a*t *")' )"n', t"da, i* )"r' alua#l' than th' $utur'.na)'l, %

/& M"n', l"*'* it* alu' "'r ti)'

The #%rchasin$ #ower of mone contin%es to fall mainl d%e to inflation in the econom& For exam#le in Indonesia" one cent mone

can b% a c%# of coffee in the .???s" b%t toda the same one cent can not b% a c%# of coffee& Therefore the val%e of one cent fall over the ears&

0& M"n', ha* n"t 1"*t adanta2'

If one have mone toda" he can invest the mone in some b%siness vent%re " thereb increasin$ the amo%nt of mone a #erson in the f%t%re& In

conventional analsis" interest income is one of the cost advanta$e of the mone" b%t interest-based income is forbidden in islam&

(& Th' un1'rtaint, "$ $utur' 1a*h $l"+*


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F%t%re cash flows are ho##in$ onl& Therefore" f%t%re cash flows are %ncertain ris0& eo#le a##reciated the cash flow is now more val%able than

the f%t%re cash flows&

SHORT NOTE RIBA

DEFINITION

• Riba literall means to increased" to $row" to rise" to add& It is however" not ever increase or $rowth which has been #rohibited b islam&

• Riba technicall refers to the #remi%m that m%st be #aid b the borrower to the lender alon$ with the #rinci#le amo%nt as a condition for

the loan or for an extension in its mat%rit&

T'E) OF RI*A

+&Riba d%%n - Riba o%t of lendin$ and borrowin$

• Riba ,ard - Riba is im#osed or #romised from the be$innin$&

• Riba ahiliah - There is no riba at the be$innin$" riba is im#osed onl after defa%lt&

.&Riba b%% - Riba in trandin$ transactions&

• Riba Nasiah - The ribawi materials (of the same basis and the same 0ind! are exchan$ed at the same time&• Riba Fadhl - The ribawi materials exchan$ed are made at two different times&

RIBAWI ITEMS


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8ommodit 9one: 8%rrenc1

• ;old

• )ilver

• 8%rrenc

Foodst%ff1

• 7heat

• *arle

• Dates

• )alt

RULE CONCERNIN RIBA (r%le of exchan$e for ribawi materials!


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• *arter sstem is not so favo%rable from the )hariah #oint of view&


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• The im#act of riba is on the societ at lar$e com#ared to other crimes #rescribed in h%d%d which im#act are restricted to onl a few of

#eo#le&

• It is a clear b%rden on the borrower& 9one and time cannot $row b themselves&

• Riba is the main #%shin$ factor for the #eo#le with s%r#l%s of mone to lend their mone o%t to the deficit %nits in the econom&

• To #revent an form of in=%stice" ex#loitation and mani#%lation amon$ the #arties&

• The inflexibilit of interest char$e res%lts in loss and %nem#loment in com#arison with the #rofit-and-loss sharin$ sstem&

!r"hi#iti"n "$ Ri#a al-Fadl%

• To ban an form of %nfair trade #ractices from the b%siness societ / %nfair #ractice in barter transaction&

• The ro#het saw was act%all trin$ to disco%ra$e barter tradin$ and $rad%all eliminate barter sstem while s%$$estin$ a better and =%st

monetar sstem %sin$ c%rrenc&

TIME VALUE OF MONEY

• Time >al%e of 9one in T>9 Islam Economic ers#ective1

• The conce#t of T>9 is a f%ndamental conce#t in finance& The draft concl%ded that mone toda is more val%able than mone in the

f%t%re& One million r%#iah toda have a val%e of more than one million R9 in the f%t%re&

THREE )ain r'a*"n* +h, at l'a*t *")' )"n', t"da, i* )"r' alua#l' than th' $utur'. na)'l, %

• 9one loses its val%e over time

• 9one has not cost advanta$e

• The %ncertaint of f%t%re cash flows


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MIND MAP

98,Th' Rati"nal

#'hind Th'

!r"hi#iti"n of

Riba

To #revent an form of in=%stice" ex#loitation"

mani#%lation

It is a clear b%rden on the

borrower

*arter sstem is not so favo%rable

from the )hariah #oint of view

Ri#a Bu,u

Riba in tradin$ transactions

(two ribawi materials!

Riba is the main #%shin$

factor for the #eo#le with

s%r#l%s the mone

Ti)' alu' "$ )"n',

The conce#t of T>9 is f%ndamental conce#t

finance& The draft concl%ded that mone toda

is more val%able than mone in the f%t%re

R I B A

Ri#a Na*iah

Exchan$ed are made at different

time

Ri#a al-$adl

Exchan$ed are of different wei$ht"meas%rements or n%mber

T,3'* "$ Ri#a

Ri#a Du,un

Riba o%t of lendin and borrowin

Ri#a 4ahili,ah

Is im osed onl after defa%lt

Ri#a Qard

Is im#osed or #romised from the

@iterall means to increased" to

$row" to rise" to add

Technicall refers to the #remi%m that

m%st be #aid b the borrower to the

lender alon$ with the #rinci#le amo%ntas a condition for the loan or for an

extension in its mat%rit

D'$initi"n "$ Ri#a


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+- Riba means&&

a! Riba is im#osed or #romised from the be$innin$

b! There is no riba at the be$innin$

c! To increase "to $row "to rise "to add &d! 8ash flows are %ncertain and ris0

.- T#e of riba is

i& *%%

ii& Riba al-fadhliii& D%%n

iv& Riba al-2ard

a! ii and iv

b! i and iiic! ii and iii

d! iv onl

B- Define riba d%%n

a! Riba in tradin$ transaction

b! Riba o%t of lendin$ and borrowin$c! 9aterials exchan$ed are e2%al wei$ht

d! Is im#osed or #romised from the be$innin$

C- Two (.! t#es of riba b%%


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i& Riba al-2ard

ii& Riba an-nasiah

iii& barle

iv& Riba al-fadhl

a! i and iv

b! ii and iiic! iii and iv

d! i and ii

4- Exam#les of ribawi items

a! *arle "wheat "salt and dates

b! Rice "handba$ " shoes and shirt

c! *read "#alm oil "c%c%mber and car

d! 8oins "t%rmeric #owder and banana

- In the riba it have a condition of exchan$e of ribawi items the condition is

a!


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The revelation from Al-,%ran above is related to

a! rohibition of riba

b! Obli$ation of riba

c! rohibition of maisir

d! *ills of #ament

- Time val%e of mone in islam economic #ers#ective

a! The conce#t of time val%e is a #%rchasin$ mone to fall mainl d%e to inflation

b! The conce#t of time val%e is a f%ndamental conce#t in finance&

c! The conce#t of time val%e is a #remi%m that m%st be #aid b the borrower d! The conce#t of time val%e is a material exchan$e are e2%al wei$ht " meas%rements or n%mbers

- There are three main reasons wh at least some mone toda is more val%able than the f%t%re" namel 1

i& 9one loses its val%e over timeii& Time val%e of mone

iii& 9one has a cost advanta$e

iv& The %ncertaint of f%t%re cassh flows

a! ii "iii and iv

b! i" ii and iii

c! i " iii and ivd! All

+?-riba is imposed or promised from the beginning


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7hich is the meanin$ for the above statements

a! Riba al-=ahiliah b! Riba al-fadhl

c! Riba an-nasiahd! Riba al-2ard

++- 7hich the hol 2%ran verse that state 5o believer" ta0e not do%bled and redo%bled riba" and fear ;od so that o% ma #ro#er& Fear the fire

which has been #re#ared for those who re=ect faith" and obe ;od and the #ro#het so that o% ma receive mercG

a! )%rah an-Nisa

b! )%rah Al Himran

c! )%rah al-ba2arah

d! )%rah al-r%m

+.- which of the first sta$es of #rohibitions in the holl 2%ran

a! )%rah an-Nisa

b! )%rah Al Himran

c! )%rah al-ba2arah

d! )%rah al-r%m

+B-there are t#es of d%%n

a! +

b! C

c! .

d! 3


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+C- riba is derived from the arabic arab words that means extra

" develo#in$ and &&&&&&&

a! Increased

b! F%ll

c! Exchan$ed! borrowin$

+4- 5 the ribawi materials of the same basis and same 0ind exchan$ed are of different wei$hts" meas%remets or n%mbers and the are exchan$ed

at the same time 5 the statements are refers the meanin$ of riba &&

a! Riba al-fadhl

b! Riba b%%

c! Riba d%%n

d! Riba al-=ahiliah

+-

There are three main reasons wh at least some mone toda is more val%able than the f%t%re "there is descri#tion abo%t three main reason which

one &&&

a! 9one has a cost advanta$e

b! 9one loses its val%e over time

c! The %ncertaint of f%t%re cash flows

d! remi%m that m%st be #aid

'uture !ash (ows are hoping only) *herefore, future !ash (ows

are un!ertain and risky) People appre!iate the !ash (ow is now

more valuable than the future !ash (ows


19/30

+3- define riba =ahilliah&&

a! Riba is im#osed or #romised from the be$innin$

b! The ribawi materials if the samebasis and same 0ind exchan$ed are of different we$hts" meas%rements or n%mbers and the are exchan$ed

at the same time&

c! Riba in tradin$ transactionsd! There is no riba at the be$innin$" riba is im#osed onl after defa%lt&

+- Define riba b%% &&

a! The ribawi material exchan$ed are of e2%al wei$ht "meas%rements or n%mbers b%t #ament of the #rice and deliver of the $oods are made

at two different times b! Riba in tradin$ transactions&This 0ind of riba ma occ%r o%t of an exchan$e between two ribawi materials of the same 0ind where the

necessar r%es are not observed

c! To ncrease " to $row to rise to add&

d! There is no riba at the be$innin$" riba is im#osed onl after defa%lt

+- define riba al-fadhl a! Refer to the #remi%m that m%st be #aid b the borrower to the lender alon$ with the #rnci#al amo%nt as a condition for the loan or for an

extension in its mat%rit

b! To increase to $row to rise to add& Not ever increase or $rowth which has been #rohibited b islam

c! The ribawi materials of the same basis and same 0ind exchan$ed are of different wei$ht "meas%rements or n%mber and the are exchan$ed at

the same time

d! There is no riba at the be$innin$" iba is im#osed onl after defa%lt

.?- riba has t#es " it is and


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a! . " b%% and d%%n

b! . " nasiah and ad

c! . " 2ard and =ahiliah

d! . " b%%n and nasiah

+""A -.+"*I/N


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%) 0hat is de1nition of Riba23) 4ist the ribawai item)5) 0hat is the !ondition of e6!hange ribawi item)7) 0hat is the de1nition of *ime 8alue Money29) +6plain about the money losses its value over time)

8RO)) 7ORD)

/&

0&


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5&

6& (&

7&

8&

9&

:&

VERTICLE

.& Riba is im#osed or #romised from the be$innin$&

4& The conce#t of time val%e of mone is a f%ndamental conce#t in &


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& There are B item of commodit mone which is $old" silver and &

3& sstem is not favo%rable from the shariah #oint of view&

& F%t%re cash flows are onl &

HORI;ONTAL

+& Riba means to increased" to " to rise and to add&

B& Riba d%%n o%t of lendin$ and

C& The ribawi materials exchan$ed are of wei$ht" meas%rement or n%mber b%t

#ament of the #rice and deliver of the $oods are made at two different times&

& The #%rchasin$ #ower of mone contin%es to fall mainl d%e to inflation in the

+?& Riba b%% have . t#e of riba which is riba nasiah and

0/RD "+AR:;

M A * . R I * 4 A < N = 8 P / ; M + B


24/30

+ " A ; : R . P N I+ = : ; A N > + D ? 4 I P @ / A - * + N

. * 4 " > ? P R /B + > I N N I N > I- D ; / A " M / ' *: A + P " 0 4 @ P I> 0 ; : . D B ? ' B4 D M * N 4 + A 4 I" A > ? + A 4 D / ;

; P . = M > N ? P /- B A - 8 + > I A RP R / P + R * ' P

%) property )1nan!e

3) prohibition ) gold

5) lender %C) e6!hange

7) beginning


25/30

9) maturity

&) eual

E) pur!hase

8A)E )TJD'

KUALA LUMPUR: The proposed merger between CIMB Group Holdngs Bhd! RHB C"pt"l Bhd "nd M"l"#s" Buldng $o%et# Bhd

s set to tr"ns&orm the &n"n%e ndustr# "s t would %re"te " meg" Isl"m% b"n'! CIMB group %he& e(e%ut)e o&&%er *"tu' $er +",r

R","' s"d-

He s"d the Isl"m% &n"n%e ndustr# needed tme to re&le%t where t s he"dng to "s there s too mu%h obsesson on non.rb" or

non.nterest ssue "nd more &o%us should be g)en on s#"r"h prn%ples! nste"d o& nterests ssue-


26/30

Alludng th"t %urrentl#! Isl"m% &n"n%e s &o%used on glob"l su'u' ssu"n%e "nd %orpor"te lendng to "llow %he"per borrowng! he

s"d Isl"m% &n"n%e %ould "dd )"lue! & t en"bled those who %ould get &n"n%ng! to get &n"n%ng-

/I& ths 0merger1 s su%%ess&ul! ths s " new segment o& busness th"t we would l'e to tr#!2 he s"d "t the 3th M"l"#s"n $tudent

Le"ders $ummt 4567 org"nsed b# the UK "nd 8re Coun%l o& M"l"#s"n $tudents on $"turd"#- 9 Bern"m"

+& Identified means of riba

Riba means addition" to increased" to $row" to rise& Riba refers to the #remi%m that m%st be #aid b the borrower to the lender

alon$ with the #rinci#le amo%nt as a condition for the loan or an extension in its mat%rit&

.& 7hat ha##en in the 9odern Financial Instit%tion now

8har$in$ the interest in the ban0in$ sector


27/30

-#rohibition of riba wo%ld safe$%ard the interest of both financial instit%tion and c%stomers

-in case of mone de#osits in savin$ acco%nts or fixed de#osits" the interest is %nfair beca%se of obli$ed to #a interest to the

de#ositer which is more that the #rinci#le amo%nt de#osited

B& The im#act if involved in the riba transaction

-the eater and $iver of riba will war with Allah swt

-loss the ber0ah of #ro#ert and life

-one of the seven bi$$est sin

C& The #rohibition of riba" $iven the essential the rational behind the #rohibition of riba

-the im#act of riba is on the societ at lar$e com#ared to other crimes #rescribed in h%d%d which are restricted to onl a few of

#eo#le

-it is the clear on the b%rden-riba is the main #%shin$ factor for the #eo#le with s%r#l%s of mone to lend their mone o%t to the deficit %nits in the

econom" it co%ld render to ex#loitation of deficit %nits b the s%r#l%s %nit

-interest-based sstem im#ends the innovations amon$st the small-scale enter#rises #artic%larl

answer

essay

+& Riba literally means to in!reased, to grow, to rise, to add) It is however, not every in!rease or

growth whi!h has been prohibited by islam) Riba te!hni!ally refers to the premium that mustbe paid by the borrower to the lender along with the prin!iple amount as a !ondition for theloan or for an e6tension in its maturity)


28/30

.& >old ""ilver" :urren!y" 0heat" Barley" Dates" "alt

5) "potAlike

+ual7) *he !on!ept of *8M is a fundamental !on!ept in 1nan!e) *he draft !on!luded that money

today is more valuable than money in the future) /ne million rupiah today have a value of

more than one million RM in the future)9) *he pur!hasing power of money !ontinues to fall mainly due to in(ation in the e!onomy) 'or

e6ample in Indonesia, one !ent money !an buy a !up of !oFee in the 3CCCs, but today the

same one !ent !an not buy a !up of !oFee) *herefore the value of one !ent fall over the years)

A * . R I * 4

++ " A ; : R . P N+ = : ; A N > + D

+ NR /


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B + > I N N I N > I/ *

+ 4 I: D B

4 N IA A ;. N /

- I RP R / P + R * ' P


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Ca*' *tud,

+! Identified means of riba

a& Riba means addition" to increased" to $row" to rise& Riba refers to the #remi%m that m%st be #aid b the borrower to the

lender alon$ with the #rinci#le amo%nt as a condition for the loan or an extension in its mat%rit&

.! 7hat ha##en in the 9odern Financial Instit%tion nowa& 8har$in$ the interest in the ban0in$ sector

b& -#rohibition of riba wo%ld safe$%ard the interest of both financial instit%tion and c%stomers

c& -in case of mone de#osits in savin$ acco%nts or fixed de#osits" the interest is %nfair beca%se of obli$ed to #a interest

to the de#ositer which is more that the #rinci#le amo%nt de#osited

B! The im#act if involved in the riba transaction

a& -the eater and $iver of riba will war with Allah swt

b& -loss the ber0ah of #ro#ert and life

c& -one of the seven bi$$est sin

C! The #rohibition of riba" $iven the essential the rational behind the #rohibition of riba

a& -the im#act of riba is on the societ at lar$e com#ared to other crimes #rescribed in h%d%d which are restricted to onl a

few of #eo#le

b& -it is the clear on the b%rden

c& -riba is the main #%shin$ factor for the #eo#le with s%r#l%s of mone to lend their mone o%t to the deficit %nits in the

econom" it co%ld render to ex#loitation of deficit %nits b the s%r#l%s %nitd) -interest-based sstem im#ends the innovations amon$st the small-scale enter#rises #artic%larl

group 8 riba

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