The Faculty of Law, University of Karbala, discussed the master’s thesis tagged (repurchase agreement) for Baha Ahmed Sabbar.
The study aimed to show that the repurchase agreement (repo) is one of the most important means that traditional banks resort to manage the cash liquidity problem (the need for cash liquidity or the presence of excess liquidity that needs operation or investment), by concluding an agreement to sell securities (debt bonds). Governmental) or any liquidated assets, with the condition that they are repurchased after a specified period for their price, in addition to an amount of money as interest calculated on the basis of a certain rate called (the repo rate); As a result of the importance of this agreement as one of the most important means of liquidity management, how appropriate is it for Islamic banks? As a result of the importance of the topic of research in relation to Islamic banks, the study focused on clarifying the nature of this agreement by explaining its definition, pillars, and functions, adapting this agreement, and stating its ruling in the view of Islamic and legal jurisprudence, if the legal ruling of this agreement depends on what jurisprudence decides in its ruling for this agreement.
The researcher reached a number of results and recommendations, the most important of which are: The research concluded that this agreement is illegal based on the fact that it is an interest-based loan secured by mortgage securities. The researcher also presented a set of alternative solutions to this agreement, which perform the same functions as this agreement, which enable Islamic banks to manage their cash flow with tools commensurate with the nature of these banks.
