Mohammed F. Z. The role of endowment banks in enhancing the protection of vulnerable groups

Abstract

          Endowment banks are defined as the bodies and entities that benefit from the endowed assets in implementation of the endowment’s condition, according to the accounts in which endowment money is collected for a specific purpose under the responsibility of an administrative, legal and accounting organization, and what is meant by endowment banks;  The transformation of endowments from static capital into mobile capital, in accordance with legitimate banking mechanisms, to benefit from its proceeds and not from its origin, which is the Islamic concept of endowment development. Investing in endowment properties is an important option for mobilizing financial resources, which imposed the inevitability of moving endowments from traditional management to supervisors.  Institutional, and the best way is to monetize endowment assets and employ them in investment projects, and Islamic endowment banks represent their ideal model formula.

 Its importance is evident through the purpose and function on the basis of which Islamic endowment banks were created.  Which can be summarized into two main elements:

 Monetization of endowment assets: The monetary endowment is considered one of the most important components of the economy in the Islamic state, and it is what distinguished the Sharia, as none of the previous nations had ever used this distinguished economic approach, by pumping cash into the general interests of the Islamic community, as the results of the academic study indicate Ruth  Roded, which included a survey of 104 endowments spanning six centuries (1340-1947) in Egypt, Syria, Palestine, Turkey, and Anatolia;  93% of Islamic endowment properties are represented in real estate assets.  Only 5.5% of them are cash assets;  The rest of them are other forms, and this explains to us the development of investment formulas such as Ijara, Ijaratan, Al-Marsad, vacancy, replacement, replacement, etc… They are all formulas used to invest and exploit real estate endowment properties. Despite the importance of these forms of endowments in society, the requirements of contemporary development require the diversification of endowment assets.  And developing new formulas to invest and employ them in a way that enables them to maximize their benefits, which is what Islamic endowment banks are criticized for achieving.

The principle of preserving the asset and continuing the fruit: One of the characteristics of the endowment is the perpetuity of its use. This principle requires two basic things, namely: preserving the asset and continuing the fruit, due to the close connection between them. It is not possible to benefit and continue the fruit and benefit except with the survival of the asset and its preservation and perpetuation, which means that the relationship between  Endowment and investment are a basic relationship, and investment includes the endowment’s assets, the endowment’s allowance, and the endowment’s revenue and its yield. Hence, investing the endowment for the continuation of the revenue is consistent with the origin of the endowment’s legitimacy, and achieves its goals and objectives. The basic principle in managing endowment funds is to preserve the asset while ensuring the continuity of the fruit, and a system  Endowments in their traditional form cannot gain a prominent role in the development process because they do not meet the conditions for economic development.  The Endowments Foundation and its financial management through Islamic banks is the best option in this regard.