Question Summary:
I develop applications for credit risk management Question Detail:
I work as a Software developer for HSBC holdings. The application i develop is Credit Risk decisioning system. This Application supports 75 countries world wide out of which two, Malaysia and Saudi Arabia use Islamic Banking to some extent. Is it permissible for me to work here. If i get offers from Saudi Arabia in SABB (Saudi Arabian British Bank) which is a mix of Conventional banking and Islamic Banking.Can i accept the offer. I am concerned about my income being halaal.
Answer :
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Your sensitivity to earning a halal income is commendable. Earning a halal income invokes the mercy of Allah Ta’āla and barakah in one's wealth.
Since software development itself does not entail any haram action and in particular the software in reference provides multiple functions that are not directly related with transacting interest bearing loans[1], your income will be halal.[2]
And Allah Ta’āla Knows Best
Bilal Mohammad
Student Darul Iftaa
New Jersey, USA
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net
[1] Credit risk arises from the potential that a borrower or counterparty will fail to perform on an obligation. For most banks, loans are the largest and most obvious source of credit risk. However, there are other sources of credit risk both on and off the balance sheet. Off-balance sheet items include letters of credit unfunded loan commitments, and lines of credit. Other products, activities, and services that expose a bank to credit risk are credit derivatives, foreign exchange, and cash management services.
[“Credit Risk Management”, Federal Reserve, accessed on December 12, 2014, http://www.federalreserve.gov/bankinforeg/topics/credit_risk.htm]
Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximise a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. Banks should also consider the relationships between credit risk and other risks. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organisation.
[“Principles for Management of Credit Risk”, BIS, accessed on December 12, 2014, http://www.bis.org/publ/bcbs54.htm]
Credit risk refers to the probability of loss due to a borrower’s failure to make payments on any type of debt. Credit risk management, meanwhile, is the practice of mitigating those losses by understanding the adequacy of both a bank’s capital and loan loss reserves at any given time – a process that has long been a challenge for financial institutions.
[“Credit Risk Management”, SAS, accessed on December 12, 2014, http://www.sas.com/en_us/insights/risk-fraud/credit-risk-management.html]
[2] Ahsanul Fatawa, vol. 7, pg. 329, H.M. Saeed Company;
Kitabul Fatawa, vol. 5, pg. 392, Zam Zam Publishers;
Imdadul Fatawa, vol. 3, pg. 138, Maktabah Darul 'Uloom Karachi;
Islam Aur Jadeed Ma'ashi Masaail, vol. 4, pg. 136, Idaratul Islamiyyat;
Imdādul Ahkām, v. 4 p. 386-390, Maktabah Dārul `Ulūm Karachi;
مُسْلِمٌ آجَرَ نَفْسَهُ من مَجُوسِيٍّ لِيُوقِدَ له النَّارَ لَا بَأْسَ بِهِ كَذَا في الْخُلَاصَةِ
(الفتاوي الهندية، ج ٤، ص ٤٥٠، مكتبة رشيدية)؛
وَلَوْ اسْتَأْجَرَ الذِّمِّيُّ مُسْلِمًا لِيَبْنِيَ له بِيعَةً أو كَنِيسَةً جَازَ وَيَطِيبُ له الْأَجْرُ كَذَا في الْمُحِيطِ
(الفتاوي الهندية، ج ٤، ص ٤٥٠، مكتبة رشيدية)؛
(قوله وجاز تعمير كنيسة) قال في الخانية: ولو آجر نفسه ليعمل في الكنيسة ويعمرها لا بأس به لأنه لا معصية في عين العمل
(رد المحتار علي الدر المختار، ج ٦، ص ٣٩١، ايج ايم سعيد كمبني)؛
قوله وجاز إجارة بيت إلخ) هذا عنده أيضا لأن الإجارة على منفعة البيت، ولهذا يجب الأجر بمجرد التسليم، ولا معصية فيه وإنما المعصية بفعل المستأجر وهو مختار فينقطع نسبيته عنه
(رد المحتار علي الدر المختار، ج ٦، ص ٣٩٢، ايج ايم سعيد كمبني)
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