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The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 147th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 147thmeeting on 27 May 2014. The meeting among others, discussed issues arising from Shariah Standard on Wadi`ah and Hibah.
The SAC discussed the Shariah Standard on Wadi`ah and viewed that the giving of hibah to the lender in qard contract is not allowed unless it is purely based on the borrower’s discretion, not pre-conditional to the qard contract and not promoted or marketed to any potential lender. In addition, the borrower must not reveal the historical payment of hibah to the public including to the lender with the purpose of attracting potential lenders.
The SAC also discussed the Shariah Standard on Hibah and concluded that the hibah asset must be in existence at the time the hibah is entered.
This article is also available in Arabic version
