Bai’ul Inah – Is it really Permissible? Part V

Issues Regarding The Practice of Bai’ul Inah

In Malaysia, the Islamic Banking System is believed to apply the first type of Bai’ul Inah (refer to Part IV that have been posted before).

Some of the banks are using the bank’s assets such as computer, photostate machine and even the ATM Machine that have no use to customers. The practice of the first type of Bai’ul Inah is obviuosly prohibited but the Malaysian are still practicing it.

Among of the issues that have been raised in Bai’ul Inah practices in Malaysia are:

1. Perform Bai’ul Inah and imposes conditions in the contract where the customers are required to re-sell the assets to bank at a lower price.

2. Applying the Syafi’e School opinion on the first type of Bai’ul Inah, however the Syafi’e Scool is only allowing the second type of Bai’ul Inah where there are no condition for the customer to re-sell the assets

3. No actual selling and buying transactions (bai’) and the assets are never leave the bank. The selling and buying are only an excuse to give out loan with interest.

Wallhua’lam