Proposed Model for the Implementation of Sadaqa House as Banking Product or Service

Abstract

This study is conducted to suggest a suitable model for implementing Sadaqa House as a banking product or service. The concept of Sadaqa House was introduced by Dato Dr. Abdul Halim Ismail during his speech at Global Islamic Finance Forum in 2014. In his speech, he proposed to the banks to embark on efforts to develop product and services to meet the financial requirements and demand for social welfare sector. He suggested that the Sadaqa House to be operated in the Islamic banking system and in the Islamic capital market. He also suggested that the Sadaqa House to be under the supervision of Bank Negara or the Security Securities Commission. Taking into consideration of his brilliant idea, this study explore the suitable model for the implementation of Sadaqa House as a banking product or service. The study has designed a framework for Sadaqa House in the Islamic banking sector based from the Investment Model. The model is identified that suitable for the implementation of Sadaqa House since it has a similar concept. Islamic banks may use the infrastructure and system of investment model to start with Sadaqa House.

Keywords

• Sadaqa House, social welfare, Islamic banks