 Time for watching another video with a view to learn something new about Islamic banking and finance or Islamic contract or Islamic modes of finance. The topic we have chosen for this video is Tawarro. If you Google Tawarro, you will find a lot of material available for reading, for watching. Objective of this video session is like other video sessions trying to watch a video together, an academic video or a professional video, not a video just for fun. Of course, watching any video whether this is academic, professional or fun, it has this entertainment. This is why we call this activity adutainment. So using an activity in adutainment, we would like to educate ourselves. If you click on this link, you will go to a video. It is one of the unusual videos on Tawarro which actually favours the use of Tawarro in Islamic banking and finance. The presenter says that there is nothing wrong with the contract of Tawarro from a Sharia viewpoint, from an Islamic juristic viewpoint. The presenter says that there are a few sales involved in this Tawarro mode of finance and all the requirements of sales transactions from Sharia viewpoint, they are being fulfilled. So what is wrong with Tawarro? It is absolutely right. Even a person like me who does not feel entirely comfortable with the use of Tawarro in Islamic banking and finance, I would agree that Tawarro is actually an arrangement which fulfills all the Sharia requirements. So there is one transaction, a sale transaction between commodity broker 1 and this bank, one or just bank. Then there is another sale transaction between the bank and the customer. Then there is another sale transaction between the customer and commodity broker 2. So all these transactions, whether they are spot on or on murabha basis, they fulfill the Sharia requirement. The sequence in which a Tawarro transaction is executed, this is in compliance with Sharia as well. So we would tend to agree that Tawarro actually fulfills all the Sharia requirements of an arrangement. However, those who criticize the use of Tawarro in Islamic banking and finance, they do not criticize Tawarro per se. In fact, a lot of those who are not happy with the use of Tawarro in Islamic banking and finance, they are okay with its use in the context of commodity murabha, an arrangement which is used by Islamic banks for their liquidity management because there is no alternative available for the banks to manage their liquidity. Although a number of people in the beginning were not happy with the use of commodity murabha in the context of liquidity management, but now these guys are happy with this one including myself. However, when it comes to the use of Tawarro in Islamic personal finance facilities, a lot of people are not happy because this may have reputational risk for Islamic banking and finance. Islamic banking is considered as the face of Islamic banking and finance. About or more than 70% of Islamic financial assets around the world, they are in banking and if in retail banking, which is the face of banking, we have something which looks like a conventional loan. It's not good for the reputation of Islamic banking and finance. And of course, Tawarro as a contract, this is fine. As a mode of financing, this is fine. When it comes to organized Tawarro, in which the bank is helping the customer, take the commodity from here and sell it here. If Tawarro has to do it, then let the customer do it by himself. Anyway, we are doing Tawarro type things. Sometimes, okay, I have bought something from somewhere, car have for example, that is also on finance, although legally this is not correct, but in a lot of cases, individuals even sell their leased car to someone else to generate some liquidity. Legally, this is not right. However, they do this personal individual kind of arrangement and these things happen. So as long as Tawarro is practiced by individuals, no one should have any problems with it. When it comes to organized Tawarro, a lot of eyebrows go up.