Foundation of Islamic Finance

1. by : Ahmad Akmal Bin Shahidan
FOUNDATION OF ISLAMIC
FINANCE
AL-WADIAH

2. CONTENT
Content
What is al-wadiah?
Two forms of Al-Wadiah
Essential element of Al-Wadiah
Modus Operandi
Diffrerence between saving account in Islamic Banking with
convensional bank
Example bank that offer Al-Wadiah saving

3. Contract between owner of the goods and custodian of the
goods which the bank as a wadi(custodian) will kept the
property of Muwaddi’(depositor) safely and protect goods
from being stolen or destroyed.
AL-WADIAH

4. Type of deposit
(Al-Wadiah)
Wadiah Yad
Amanah
Wadiah Yad
Dhamanah
TYPE AL-WADIAH

5.  Bank or custodian acts a trustee and take care of the funds
 No guarantee on return of the funds in the event of a loss due
to theft ,fire ,flood and other natural disaster.
 The different kinds of items will are kept differently
 Eg: Money(cash) on bank, Silver or gold must be kept in
secured place such in the house.
Bank/custodian duty:
Not mixing or pooling the properties kept under custody
Not using the property
Not charging any fees for safe custody
WADIAH YAD AMANAH(TRUST)

6.  Guarantee refund of prpoperty kept with the bank or
custodian.
 Bank will return the properties to the owner if they were lost
or destroyed.
 Customer allows the bank to utilise its funds limited to halal
ventures and in compliance with syariah.
 Profit or loss will be arrange by bank and become bank
responsibility.
 Bank will give hibah to the depositor but not in agreed
advance like convensional banking.
WADIAH YAD DHAMANAH

7.  Muwaddi’ (depositor)
Have legal capacity,must be sane and reached the age of
puberty
 Wadi’ (Bank/Custodian)
Person has legal capacity
 Wadiah’ (Deposited Property)
Valuable property in Islamic Law(Mal Al-Mutaqawam),can be
possessed physically
 Sighoh (Ijab and Qabul)
Offer and acceptance between Muwaddi’ and Wadi
ESSENTIAL ELEMENT OF AL-WADIAH

8. Depositor
Bank/Custodian
Halal
investment/borrower
MODUS OPERANDI AL-WADIAH

9. Islamic Banking
 Principal amount is fully
guaranteed
 At discretion,local Islamic
Bank wil give Hibah or
gift as gesture of
appreciation.
 No profit sharing
 Bank cannot offer any
inducement in the form
of gift/promotional items
to attract new depositors
Convensional Banking
 Savings deposit and
interest not guarantee
 Interest is fixed at
predetermined rate but
subject to revision
 Interest is paid on all
savings deposit placed
 Bank can offer
promotional items to
attract new depositors
COMPARISON

10.  Bank Islam
 Minimum deposit saving is Rm100 and minimum balance is
Rm10
 Open to all 13 years old and above
 Bank will give Hibah every month based on Bank’s discretion
BANK THAT OFFER AL-WADIAH SAVING
ACCOUNT

11. Ahmad Akmal Bin Shahidan
THAT ALL FOR TODAY..
THANK YOU..
MAKE THE RIGHT CHOICE..