ASSIGNMENT BOP

KOLEJ PROFESIONAL MARA BANDAR MELAKA
DIPLOMA IN ISLAMIC BANKING AND FINANCE

BANKING OPERATION AND PRACTICES
MGT 3663

GROUP ASSIGNMENT

PREPARED BY:

NAME ID NUMBER

MUHAMMAD AIDID BIN MOHD TARMIZI BMF19-06-016
ZAFIRAH BINTI ZAFARULLAH BMF19-06-041
BMF19-06-030
FATIN FARZANA BINTI SHAHARIMAN BMF19-06-027
NUR AMIRAH NABILAH BINTI OMAR BMF19-06-032

IRDINA BINTI ROSDY

PREPARED FOR:
MISS NOOR AISYAH BINTI OTHMAN

DATE OF SUBMISSION:
26 APRIL 2021

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TABLE OF CONTENT

TOPIC PAGE
2
ACKNOWLEDGEMENT 3
4-9
INTRODUCTION OF THE ASSIGNMENT

CONTENT

➢ Introduction to Qard Saving Deposit Account and Tawarruq Home
Financing

➢ Uses of Fund
▪ Differences between Bank Malaysia Berhad and Public Bank
Berhad

➢ Sources of Fund
▪ Differences between Bank Malaysia Berhad and Public Bank
Berhad

REFERENCES 10
APPENDIX 11-13

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ACKNOWLEDGEMENT
Alhamdulillah, first and foremost we would like to express our gratitude to ALLAH for
allowing us to complete our assignment that have been given by our lecturer. This assignment
was completed with all effort by group members, despite a minor issue that arose during the
process of the assignment. Fortunately, all of the issues were resolved, and we were able to
adapt correctly and wisely.
Apart from that, we would like to address our gratitude to our beloved lecturer Pn
Noor Aisyah binti Othman, without her our assignment would not have been completed
properly. She is always there to support and instruct us on how to complete this assignment
in order to achieve a positive result from the research that has been conducted.
Finally, we like to convey our gratefulness to our group members for always sticking
together and working hard to deliver a quality assignment with all of their commitment and
responsibility. We hope that all of our efforts will pay off heftily for us.

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INTRODUCTION OF THE ASSIGNMENT

For this assignment, we have created a group consist of 5 persons, Muhammad Aidid
bin Mohd Tarmizi, Zafirah binti Zafarullah, Irdina binti Rosdy, Fatin Farzana binti Shahariman
and Nur Amirah Nabilah binti Omar. This assignment is related to our subject, Banking
Operation and Practices. We were given the task to make a study on the sources of funds and
the uses of funds. We need to make a comparison on its uses in conventional bank and Islamic
bank. First of all, we have chosen Qard Saving Deposit Account as sources of fund and
Tawarruq Home Financing as uses of funds. The reason we choose these two funds is because
the products is familiar with our daily life. The banks we have chosen are Public Bank and also
Bank Islam. We include the introduction of the funds and the comparison that we have found.
For Qard Saving Deposit Account, we will make a comparison in terms of minimum services,
types of account, age requirement, benefits, internet banking, and contract. We will recognize
the differences for Tawarruq Home Financing in terms of product’s name, benefits, what is
the product about, eligibility criteria, financing tenure and required documents. We need to
complete this assignment before 26 April 2021. If you want to know further information, let’s
explore this report.

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INTRODUCTION TO QARD SAVINGS DEPOSIT ACCOUNT

Savings deposit account allows customers to deposit and withdraw money at any time,
and there is no minimum balance requirement in the deposits account. It does not have a
maturity date, so the money can be withdrawn whenever the customer wants it. Savings
deposit account in Islamic Bank works based on profit sharing not interest based. The savings
deposit account may be in the form of a qard, wadi'ah yad dhamanah, or mudarabah.

Qard is transfer of fungible wealth ownership to an individual who is obligated to return
fungible wealth of equal value. The essence of qard is to provide financing on wealth or
property to someone who will profit from it. The aim is to provide depositors with assured
safekeeping of their funds while allowing banks to use them for banking and business
purposes. In a qard arrangement, the depositor is considered a lender to the bank, which
functions as the borrower, and the bank promises certain returns even if negligence or wealth
loss occurs.

DIFFERENCES BETWEEN SAVINGS DEPOSIT ACCOUNT FOR PUBLIC BANK AND
BANK ISLAM

PUBLIC BANK BERHAD DIFFERENCE BANK ISLAM MALAYSIA BERHAD

There is no specific contract CONTRACT • Qard
because it is a Conventional. • The Customer authorises the

Bank to work with the whole or
any portion of any balances in
the account in the way that the
Bank considers appropriate. Any
gains made by the Bank from
the utilisation of the funds
would be retained by the Bank.
The Bank can, at its sole
discretion, send the Customer a
reward (Hibah).

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• Cheques and cash deposits MINIMUM • Cash deposit
• Account enquiries and fund SERVICES • ATM and over-the-counter

transfers (OTC) withdrawals
• Bill payments facilities • Fund transfers and bill payment

• For individuals (personal or TYPES OF facilities
joint) with an initial deposit of ACCOUNT • For individual, Joint and Trust
just RM20
(for children below 12 years old-
• OPEN TO ALL AGE to be opened with parents/legal
REQUIREMENT guardian)
Option 1 - Waiver of annual fee for
Debit Card S • OPEN TO ALL

BENEFITS • No service or maintenance
charge will be imposed on the
• Free 6 over-the-counter account
(OTC) visits per month.
• Enjoy the convenience of
• Free 8 ATM cash withdrawals printing mini statement via ATM
per month. machines

Option 2 – Annual Fee of RM 8.00 • ATM withdrawal via MEPS
for Debit Card

• Unlimited ATM cash
withdrawals and OTC
transactions.

• The first 2 Interbank GIRO
transactions via OTC in a
month at a fee of RM0.50
per transaction and RM2.00
per transaction for third
transaction onwards.

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• Account enquiries and fund INTERNET • Fund transfer facility (with
transfers within internet BANKING EXCEPTION of GIRO facility
banking and mobile banking. where the Bank will impose a
service charge of RM0.10 per
• Bill payments via internet transaction to BCA holders)
banking and mobile banking.
• Online bill payment facilities
within the Bank

• Account enquiries including
account balances/summary,
account statement and
transaction history

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INTRODUCTION TO TAWARRUQ HOME FINANCING

Tawarruq home financing is a Middle Eastern Islamic bank's alternative to traditional
home financing. Tawarruq is widely used by Islamic banks as a mode of financing to facilitate
cash transactions such as personal financing, working capital financing, and business cash
lines, in addition to being used as a home financing instrument.

For many Malaysian banks, tawarruq home financing is a rising segment of Islamic
home financing. According to reports, tawarruq home financing was a crucial segment that
increased the bank's profits and customer base. The level of maqasid enforcement is found
to be superior, implying that customers' beliefs in tawarruq home financing are formed when
they believe the banks' products are consistent with maqasid al-Shariah. Maqasid al-Shariah
serves as a trustee for consumers, enhancing their trust and faith in the commodity, resulting
in increased demand and a larger customer base for this segment of Islamic home financing.

DIFFERENCES BETWEEN HOME FINANCING FOR PUBLIC BANK BERHAD AND BANK ISLAM
MALAYSIA BERHAD

PUBLIC BANK DIFFERENCES BANK ISLAM MALAYSIA
BERHAD

5 Home Plan PRODUCT’S NAME PROPERTY FINANCING-I
(TAWARRUQ) - BAITI HOME

FINANCING-I

• Great savings as interest BENEFITS • Under construction /
rates are calculated on completed house
daily rest
• No lock-in period
• Credit cards with Exclusive • No compounding
Annual Fee Waiver for the
entire loan tenure for elements
eligible customers. • No processing fee

• Option for Redraw Facility • High margin of
(for new Conventional financing up to 90%

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Housing Loans with an
approved amount of
RM100,000 and above).

This housing loan is calculated on WHAT IS THIS This financing facility is to
a variable / fixed rate basis and PRODUCT ABOUT? assist you in financing the
you are offering your property as purchase of a residential
property. The Bank’s Sale Price
security for this financing. is derived based on the Ceiling
Profit Rate (CPR), which is
fixed throughout the tenure.

• Minimum Annual Income - ELIGIBILITY • Malaysian citizen
RM24,000 CRITERIA
• Age 18 and above
• Age 21 to 70 years old
• Any nationality • Not a bankrupt or have
any legal action
• Salaried employee
• Self-employed • Gainfully employed or
Profitable business for
at least 3 years
Minimum 1-year good
payment track record

Up to 35 years FINANCING Financing Tenure of up to 35
TENURE years or age 70, whichever is

earlier

• Application form from the REQUIRED • Photocopy of identity
bank or online DOCUMENTS card

• A copy of your identification • Sales & purchase
card or passport agreement

• For salary earners:

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• A copy of SPA / Booking • Latest 3 months salary
Receipts / Letter or Offer slips
from Developer
• Latest 3 months salary
• Salaried applicant
crediting account
- Latest 3 to 6 consecutive
months salary slips or statements
vouchers or Latest EA From
• Employer’s
- EPF Statement (latest not Confirmation Letter
more than 1 year) or Latest
Tax Returns and Tax • Annual Income
Receipts or Employment
Letter or Latest 3 months Statement/ BE Form /
Bank Statement for salary
account EPF statement

• Self-employed applicant • Any other supporting
income documents
- Latest 6 months bank statements
or Latest 1 year Tax Returns and • For self-employed /
Tax Receipts
businessman

• Company /

Business

Registration

• Last 6 months’

Bank

Statements

• Latest 3 years

Financial

Statement

• Latest B Form

• Any other

supporting

income

documents

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REFERENCES
1. https://www.bankislam.com/wp-content/uploads/Attachment-1-2.pdf
2. https://www.pbebank.com/pdf/Banking/pds-home_eng-bm.aspx
3. https://www.pbebank.com/Personal-Banking/Banking/Loan/Home-Loan/5-

HOME-Plan.aspx
4. https://www.dummies.com/personal-finance/islamic-finance/reverse-

murabaha-tawarruq-in-islamic-
finance/#:~:text=Tawarruq%20is%20a%20financial%20instrument,to%20m
ake%20the%20initial%20purchase.
5. https://ringgitplus.com/en/home-loan/Public-Bank-5-Home-Plan.html
6. https://www.bankislam.com/personal-banking/deposit-and-
investments/deposit-account/basic-savings-account-i/
7. http://www.ijbs.unimas.my/images/repository/pdf/Vol19-no3-paper7.pdf
8. https://islamicmarkets.com/articles/time-to-consider-tawarruq-home-
financing-a-new-insight
9. https://www.pbebank.com/Personal-Banking/Banking/Deposit/Saving-
accounts/Basic-Savings-Account.aspx

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APPENDIX
11

12

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-THANKYOU-

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