—This paper looks at the permissibility of
establishment of a waqf (a non-profit social bank) in Islamic law.
Considering the needs of the poor majority in all Muslim
nations, unattended to by current banking system, it explores
and extends the views of Muslim jurists regarding the validity
of cash waqf to the permissibility of waqf bank. Cash waqf
donations and proceeds can be used to form the capital of the
bank. The principles of waqf and its perpetuity and the
protection of the cash waqf can also apply to the capital of the
bank. The structure of this bank and its functions has to be in
conformity with waqf principles too.
—Cash waqf, waqf bank, Social bank.
M. T. Sabit is with the Universiti Teknologi Malaysia, Johor, Malaysia
(e-mail: mtahir@ utm.my).
Cite:Mohammad Tahir Sabit Haji Mohammad, "Towards an Islamic Social (Waqf) Bank," International Journal of Trade, Economics and Finance vol.2, no.5, pp. 381-386, 2011.