Classification of defaulters in the payment of debt in Islamic banking practices

This paper discusses the issue of treatment of debt defaulters from SharÊ'ah perspective and its current practices in Islamic banking and finance. In doing so, the paper first explains the concept of debt and its payment obligation from Islamic point of view. The paper also critically reviews t...

Full description

Bibliographic Details
Main Authors:	Hasan, Aznan, Haron, Muhamad Nasir, Mohamed, Mohd Faysal, Mana, Budeeman
Format:	Article
Language:	English English
Published:	IIUM Press, International Islamic University Malaysia 2017
Subjects:	HG Finance HG3368 Islamic Banking and Finance HJ8003 Public credit. Debts. Loans. Claims
Online Access:	http://irep.iium.edu.my/63102/ http://irep.iium.edu.my/63102/ http://irep.iium.edu.my/63102/1/63102_Classification%20of%20defaulters%20in%20the%20payment_scopus.pdf http://irep.iium.edu.my/63102/7/63102_Classification%20of%20defaulters%20in%20the%20payment.pdf

id	iium-63102
recordtype	eprints
spelling	iium-631022018-04-18T07:02:37Z http://irep.iium.edu.my/63102/ Classification of defaulters in the payment of debt in Islamic banking practices Hasan, Aznan Haron, Muhamad Nasir Mohamed, Mohd Faysal Mana, Budeeman HG Finance HG3368 Islamic Banking and Finance HJ8003 Public credit. Debts. Loans. Claims This paper discusses the issue of treatment of debt defaulters from SharÊ'ah perspective and its current practices in Islamic banking and finance. In doing so, the paper first explains the concept of debt and its payment obligation from Islamic point of view. The paper also critically reviews the current practice of treating defaulters by Islamic banks. A thorough analysis on various opinions and views of the classical and contemporary jurists in determining the types of defaulters is also provided. The paper concludes that besides the categorization of defaulters to solvent and insolvent in the modern Islamic banking practice, a new category namely, muta'atthir (a solvent debtor who is facing temporary shortage of liquidity) should also be considered. These debtors are not insolvent based on the ratio of their total assets to debts. However, they are in situation of default due to temporary shortage of liquidity that they are facing. Hence, this new category might have its own ruling from Shari'ah point of view in terms of debt settlement and restructuring where it does not carry the ruling of insolvent debtor. IIUM Press, International Islamic University Malaysia 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63102/1/63102_Classification%20of%20defaulters%20in%20the%20payment_scopus.pdf application/pdf en http://irep.iium.edu.my/63102/7/63102_Classification%20of%20defaulters%20in%20the%20payment.pdf Hasan, Aznan and Haron, Muhamad Nasir and Mohamed, Mohd Faysal and Mana, Budeeman (2017) Classification of defaulters in the payment of debt in Islamic banking practices. Al-Shajarah, 2017 (Special Issue: Islamic Banking and Finance). pp. 85-103. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/610
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance HG3368 Islamic Banking and Finance HJ8003 Public credit. Debts. Loans. Claims
spellingShingle	HG Finance HG3368 Islamic Banking and Finance HJ8003 Public credit. Debts. Loans. Claims Hasan, Aznan Haron, Muhamad Nasir Mohamed, Mohd Faysal Mana, Budeeman Classification of defaulters in the payment of debt in Islamic banking practices
description	This paper discusses the issue of treatment of debt defaulters from SharÊ'ah perspective and its current practices in Islamic banking and finance. In doing so, the paper first explains the concept of debt and its payment obligation from Islamic point of view. The paper also critically reviews the current practice of treating defaulters by Islamic banks. A thorough analysis on various opinions and views of the classical and contemporary jurists in determining the types of defaulters is also provided. The paper concludes that besides the categorization of defaulters to solvent and insolvent in the modern Islamic banking practice, a new category namely, muta'atthir (a solvent debtor who is facing temporary shortage of liquidity) should also be considered. These debtors are not insolvent based on the ratio of their total assets to debts. However, they are in situation of default due to temporary shortage of liquidity that they are facing. Hence, this new category might have its own ruling from Shari'ah point of view in terms of debt settlement and restructuring where it does not carry the ruling of insolvent debtor.
format	Article
author	Hasan, Aznan Haron, Muhamad Nasir Mohamed, Mohd Faysal Mana, Budeeman
author_facet	Hasan, Aznan Haron, Muhamad Nasir Mohamed, Mohd Faysal Mana, Budeeman
author_sort	Hasan, Aznan
title	Classification of defaulters in the payment of debt in Islamic banking practices
title_short	Classification of defaulters in the payment of debt in Islamic banking practices
title_full	Classification of defaulters in the payment of debt in Islamic banking practices
title_fullStr	Classification of defaulters in the payment of debt in Islamic banking practices
title_full_unstemmed	Classification of defaulters in the payment of debt in Islamic banking practices
title_sort	classification of defaulters in the payment of debt in islamic banking practices
publisher	IIUM Press, International Islamic University Malaysia
publishDate	2017
url	http://irep.iium.edu.my/63102/ http://irep.iium.edu.my/63102/ http://irep.iium.edu.my/63102/1/63102_Classification%20of%20defaulters%20in%20the%20payment_scopus.pdf http://irep.iium.edu.my/63102/7/63102_Classification%20of%20defaulters%20in%20the%20payment.pdf
first_indexed	2023-09-18T21:29:31Z
last_indexed	2023-09-18T21:29:31Z
_version_	1777412416688095232

Classification of defaulters in the payment of debt in Islamic banking practices

Similar Items