Publication:

The Shariah view on letter of credit in contemporary banking transactions

Loading...
Thumbnail Image

Abstracts views

151

Views & Download

15

Date
2009
SDG:
Abstract
This article deals with the definition, types, benefits in international trade, legality, and steps of initiating and executing Letter of Credit (LC). It discusses the questions raised about the conformity of some types of LC with the principles and criteria of Islamic law and the way to address issues related to its illegality. The article surveys the applications of LC in Islamic banks, which are based on the contracts of murabahah, mudarabah, musharakah and wakalah. It was concluded that LC can be legal in Islamic law as long as it does not involve both form and spirit credit based on usury/interest, but a financing based on real murabahah, mudarabah, musharakah and wakalah.
Keywords
Letter of credit , Murabahah , Mudarabah , Musharakah , Wakalah
Citation
Jaghim, N. & Lahsasna, A. (2009). The Shariah view on letter credit in contemporary banking transactions. At-Tajdid, 13(25), pp. 157-180.
Publisher
IIUM
DOI

Link Entity

Person Search Results

Your search returned no results. Having trouble finding what you're looking for? Try putting quotes around it