LINKING ISLAMIC COMMERCIAL AND SOCIAL FINANCE WITH SPECIAL REFERENCE TO CASH-WAQF AS NEW STRATEGY OF INTEREST-FREE MICRO-CREDIT FOR FAMILY EMPOWERMENT OF THE POOR TOWARDS ESTABLISHING WORLD SOCIAL BANK: A CASE STUDY APPROACH
The floating of Cash-waqf Certificate as a financial instrument by Social Islami Bank Ltd (SIBL) in Bangladesh in 1997 (formerly known as Social Investment Bank Ltd) is an innovation in the history of Islamic Finance. The issuance of Cash-waqf Certificate has settled the age-old controversy among scholars concerning the concept of perpetuity and inalienability associated with waqf property since its implementation during the Ottoman Empire in the early 15th century. This study has put forward three proposals to establish a World Social Bank that includes (i) Giving Institutional Leadership by Bank Indonesia (ii) Forming International Taskforce (iii) Connecting Initiatives of Muslim- Minorities in Non-Muslim Countries for initial establishment of Commonwealth of Human Communities. Since the aforementioned Cash Waqf is managed by the Bank, it has its transparency and accountability, it is a perpetual deposit and its profit can be invested in a wide spectrum of social investment. Bank shall manage Cash-Waqf on behalf of the Waqif. It can help monetizing Islamic Voluntary Sector, accumulation of Social Capital and National wealth, implementing strategic social investment program that reinforces family values, family heritage empower people at grass roots and stimulates economic, social and moral foundation of a caring society. Cash-Waqf Certificate provides new opportunities to transfer liquid asset and make connection with one another on a global scale leading to establishment of World Social Bank a new strategy of interest-free micro-credit for empowering the poor to irrespective of caste,
creed and religion.
Cizakca, Murad. (2011). Islamic Capitalism and Finance, Origins, Evolution and Future. Edward Elgar, USA, pp. 114-115.
Global Wealth Management. (2007). New Trends and Perspectives by Wan N. Wan Azmi, Special Report by Labuan Offshore Financial Services Authority, Malaysia, Finance Newsletter, Nov. 2007, Issue 2.
Ibrahim, H., Amir, A., & Masron, T. A. (2013). Cash waqf: An innovative instrument for economic development. International Review of Social Sciences and Humanities, 6(1), pp. 1-7.
Khademolhoseini, Majid. (2008). Cash-Waqf: A New Financial Instrument For Financing Issues: An Analysis Of Structure And Islamic Justification Of Its Commercialization. Imam Sadiq University.
Mannan, M.A. (Cash-waqf) Model (Bangladesh) in Cizakca, Murat, Islamic Capitalism and Finance, Origins, Evolution and the Future. Edward Elgar, pp. 114-117.
Mannan, M. A. (2011). Cash Waqf, Living by Giving and Sharing. dari http://www. drmannan. net/cash-waqf-living-by-giving-and-sharing-2/.(Accessed on November 20, 2017)
Mannan, M. A. (1999). Cash waqf certificate–an innovation in Islamic financial instrument. In Global opportunities for developing social capital market in the 21st century voluntary sector banking, paper presented to the Third Harvard University Forum on Islamic Finance, Cambridge Massachusetts, USA, October 1, 1999 (Vol. 1).
Mannan, M. A. (1998). New Frontiers of Islamic Banking in the 21st Century with Special Reference to Informal and Voluntary Sector Banking. Paper presented in the Second Harvard University Forum on Islamic Finance, Islamic Finance into the 21st Century, Harvard University, Cambridge, Massachusetts, October 9-10, 1998, pp. 275
Mannan, M. A. (2011). Cash-waqf: Living by Giving & Sharing Towards Establishment of World Social Bank: A New Strategy of Interest-Free Micro-Credit to the Poor and Profitable Investment Option for the Rich. Mannan Charitable Trust (HMCT), Dhaka, Bangladesh, pp. 46-47.
Sen, Amartya and Wolfensohn, James D. (1999). Poverty, Development and the People. in Daily Independent , Dhaka, 12th May 1999
The Daily Star, Dhaka, Tuesday, January 19, 2016
Journal of Islamic Monetary Economics and Finance is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.