Financial Glossary



Ibra' - Rebate given by the Islamic banking institution for the unearned profits, in the event of early redemption of financing. The rebate will be in the form of a reduction in the balance outstanding of the selling price.

Inactive Account - An account that has no transaction for a specific period, e.g., 6 months or 12 months.

Installment - Monthly payment that the borrower has to pay to the banking institution as stated in the loan or financing agreement.

Insufficient Funds - The notation of dishonour (of a cheque) indicating that the drawer's account does not contain enough money to cover payment of the cheque.

Insurance Protection on Purchase with Card - Merchandise purchase Insurance coverage provided by card issuers on merchandise purchase charged to the credit card in the event the merchandise is lost / damaged. Generally, protection is given for a limited period, e.g. 30 days from date of purchase and there may be a limit on the maximum amount of coverage given.

Interbank Giro - An electronic funds transfer payment system for interbank payments up to a maximum of RM100,000 per transactions

Interest Rate - The amount charged by the lender to the borrower for borrowing a sum of money expressed as percentage of sum borrowed.

Investment Risks - Investment unlike savings involves risk. This refers to the risks that the value of an investment may be lower due to factors like movements in asset prices arising from changes in the market sentiment, business cycles, company revenue performance and changes in credit ratings.

Investment-linked insurance - A life insurance plan that combines investment and protection. The premiums paid will partly be used to pay for life insurance cover and partly for investment in specific investment funds of the policyholder's choice.

Islamic Banking Institutions - Banking institutions licensed under the Islamic Banking Act (IBA) 1983 or the Banking and Financial Institutions Act (BAFIA) 1989 that offer Islamic banking products and services.


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