A revisit to the practice of late payment charges by Islamic Banks in Malaysia
Islamic banking in Malaysia have been experiencing late payment and default issues because customers are not allowed to be charged with interest (riba) as opposed to the practices in the conventional banking. To mitigate these issues, the Shariah Advisory Council of Bank Negara Malaysia has enforc...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
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| Online Access: | http://journalarticle.ukm.my/9420/1/9220-25196-1-PB.pdf |
| _version_ | 1796930986273931264 |
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| author | Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin, |
| author_facet | Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin, |
| author_sort | Ezani Yaakub, |
| collection | UKM |
| description | Islamic banking in Malaysia have been experiencing late payment and default issues because customers are not allowed
to be charged with interest (riba) as opposed to the practices in the conventional banking. To mitigate these issues, the
Shariah Advisory Council of Bank Negara Malaysia has enforced ta’widh and gharamah as regulatory alternatives.
Practically, ta’widh and gharamah were imposed on the defaulting customers who fail to meet their obligation to pay
their financing based on several conditions. Given the significance of its imposition, this paper aims to analyse the current
practice in Islamic banks and examine the views of contemporary Muslim scholars on ta’widh and gharamah and its
suitability as alternatives for avoidance of riba. |
| first_indexed | 2024-03-06T04:11:25Z |
| format | Article |
| id | ukm.eprints-9420 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:11:25Z |
| publishDate | 2014 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-94202016-12-14T06:49:52Z http://journalarticle.ukm.my/9420/ A revisit to the practice of late payment charges by Islamic Banks in Malaysia Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin, Islamic banking in Malaysia have been experiencing late payment and default issues because customers are not allowed to be charged with interest (riba) as opposed to the practices in the conventional banking. To mitigate these issues, the Shariah Advisory Council of Bank Negara Malaysia has enforced ta’widh and gharamah as regulatory alternatives. Practically, ta’widh and gharamah were imposed on the defaulting customers who fail to meet their obligation to pay their financing based on several conditions. Given the significance of its imposition, this paper aims to analyse the current practice in Islamic banks and examine the views of contemporary Muslim scholars on ta’widh and gharamah and its suitability as alternatives for avoidance of riba. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9420/1/9220-25196-1-PB.pdf Ezani Yaakub, and Mohamed Azam Mohamed Adil, and Asmak Husin, and Mohd Dani Muhamad, and Mohammad Mahyuddin Khalid, and Mohd Solahuddin Shahruddin, (2014) A revisit to the practice of late payment charges by Islamic Banks in Malaysia. Jurnal Pengurusan, 42 . pp. 185-190. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/614 |
| spellingShingle | Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin, A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title | A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title_full | A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title_fullStr | A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title_full_unstemmed | A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title_short | A revisit to the practice of late payment charges by Islamic Banks in Malaysia |
| title_sort | revisit to the practice of late payment charges by islamic banks in malaysia |
| url | http://journalarticle.ukm.my/9420/1/9220-25196-1-PB.pdf |
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