Retreat with the Industry: Concept Paper (CP) on Ibra’
Date : 26 January 2011 (Wednesday)
Time : 9 a.m. to 4 p.m.
Venue : Meeting Room 1, Lanai Kijang
Attendees :
• En. Azlan Abdul Samad, Bank Islam
• En. Mohammad Faizal Baharom, CIMB Islamic
• En. Noranuar Sajari, HSBC Amanah
• En. Shaifulamri Ibrahim, Al-Rajhi
• En. Zulkarnain Taman, Bank Kerjasama Rakyat
• En. Mohd Fikri Mohd. Ghapar, Hong Leong Islamic
• En. Shahidin Daud, Asian Finance Bank
• En. Mohamed Rithuan, AIBIM
• Pn. Noor Asikin Bakar, AIBIM
Bank Negara Malaysia
• En. Rustam Mohd Idris, Deputy Director (Chairperson)
• Pn. Nurmastuji Ab. Malek
• En. Ismail Nik
• En. Ahmad Hazim Alias
• En. Mohamad Hud Saleh Huddin
• Pn. Khadijah Riza Atiq
Purpose:
To discuss industry feedbacks on the CP for incorporation of the relevant feedbacks in the Guidelines on Ibra’.
Key outcomes:
Unaccrued profit
1. The term ‘unaccrued’ profits that form part of the determinant of ibra’ to be changed to another term that best reflect the sale-based transaction whereby, the rights of the Islamic banking institutions (IBI) is the total amount of profit regardless whether it is already accrued or unaccrued. Unaccrued profits may be equated to unearned profit and hence may give the impression that the profits are not the rights of the IBIs. Proposed alternatives are: ‘undue profits’ or ‘deferred profits’.
Commitment to Provide Ibra’
2. Disclosure requirements on ibra’ in the letter of offer and other legal documentations will include: 1) IBI’s commitment to provide ibra’; 2) the situations where ibra’ shall be granted; and 3) the applicable formula. The requirements to incorporate operational and administration policies on ibra’ to be removed. Where relevant, the policies and conditions on the granting of ibra’ to be provided in a separate document or other platform such as IBI’s website to avoid any administrative issues...