Analysis of Ar-Rahnu Financing Implementation in Cooperative Banking

Ar-Rahnu, also known as Islamic pawn broking, is one of the Shariah-compliant financings implementing Shariah concepts Tawarruq, Rahn, Wadi’ah, was founded in Malaysia three decades ago an alternative to conventional broking. In responding this matter, Co-opbank Pertama (M) Berhad, Malaysia’s cooperative banks, has established and offered Ar-Rahnu financing since 2018 their products throughout 29 branches Malaysia. Thus, research aims analyse implementation operations, specifically banking sector. Qualitative analysis through in-depth interviews been done with two informants who have experience field are involved Ar-Rahnu's daily operations The results reveal that process execution Berhad based on governance laws Malaysia, it institutions provides Ar Rahnu scheme, its adapted tawarruq (murabahah) rahn implementation.