| Description |
1 online resource (2 pages) : 6 illustrations |
| Series |
Emerald emerging markets case studies, 2045-0621 ; volume 5, issue 5 |
| Summary |
This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2 |
| Notes |
The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework |
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The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions |
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The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not |
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Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes |
| Bibliography |
Includes index and bibliographical references |
| Subject |
Pawnbroking -- Islam -- Religious aspects
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Risk management
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Business & Economics -- Finance -- Financial Risk Management.
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Finance.
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| Genre/Form |
Case studies.
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| Form |
Electronic book
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| Author |
Hafizi, A. M., author
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