Publication:
A case study on the default of Islamic financing facilities: Malaysian perspective
Abstract
Default can occur in Islamic banking. As the law applicable to Islamic banking is derived from Shariah, it is imperative to check whether the current practice of Islamic banks in default aligns with Shariah. The objective of this chapter is to discuss the rules and procedures Islamic banks in Malaysia follow in case of default. This is a qualitative research where data from primary sources such as laws on the matter are extracted to derive conclusions and secondary sources such as case laws and other published materials in the subject matter are explored. It is anticipated that the outcome of this chapter will assist to comprehend the way in which Islamic banks deal in case of default and since Malaysia is considered as the cranium of Islamic banking due to the comprehensive ecosystem it has created for Islamic banking and finance, the rest of the world could learn from this case study to enhance the behaviour of Islamic banks in case of default.
Keywords
Debt , Default , Malaysia , Islamic banking , Islamic banking facilities
Citation
Muneeza, Aishath. (2019). A case study on the default of Islamic financing facilities: Malaysian perspective. In Ezlika M. Ghazali et al. (Eds.), Management of Shari'ah compliant businesses: case studies on creation of sustainable value (pp. 35-43). Switzerland: Springer.
Publisher
Springer
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