Sitemap |
  Personal Banking
  Business Banking
  Corporate Info
English   |    Bahasa Malaysia  

Shariah Concept


Shariah Concept : Tawarruq
Shariah Contracts : Bai' Murabahah, Wakalah

Mechanics (Modus Operandi) Of The Product

  1. Product Structure Diagram


  2. Step by Step Process Flow of the Product

  • The customer applies financing product based on Tawarruq concept from the Bank. Bank obtains Tawarruq transaction documents from the customer.
  • Bank will buy the commodity at London Metal Exchange (LME) through Broker 1.
  • Under the Murabahah contract, Bank then sells the commodity to the customer at Bank’s Selling Price (Principle + Profit) on deferred payment term.
  • Under the Wakalah contract, customer requests Bank to sell the commodity in the market.
  • Acting as the appointed sale agent for the customer, Bank sells the commodity to Broker 2.
  • Bank then credits the Wariq (proceed) from the sale of commodity to the customer’s account.
  • Finally, customer pays amount due to the Bank (Principal + Profit) by way of agreed instalment method.
  This website is best viewed in Internet Explorer 7 and above. © Bank Islam Malaysia Berhad (98127- X). All rights reserved.