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...

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Main Authors:	Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/9420/ http://journalarticle.ukm.my/9420/ http://journalarticle.ukm.my/9420/1/9220-25196-1-PB.pdf

id	ukm-9420
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
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.
format	Article
author	Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin,
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
author_facet	Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohammad Mahyuddin Khalid, Mohd Solahuddin Shahruddin,
author_sort	Ezani Yaakub,
title	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_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_sort	revisit to the practice of late payment charges by islamic banks in malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/9420/ http://journalarticle.ukm.my/9420/ http://journalarticle.ukm.my/9420/1/9220-25196-1-PB.pdf
first_indexed	2023-09-18T19:54:50Z
last_indexed	2023-09-18T19:54:50Z
_version_	1777406459726790656

A revisit to the practice of late payment charges by Islamic Banks in Malaysia

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