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Clash of convictions: conventional banking vs Islamic banking

Muneeza, Aishath and Wisham, Ismail and Hassan, Rusni (2010) Clash of convictions: conventional banking vs Islamic banking. Malayan Law Journal, 5. xi-xxxix. ISSN 0025-1283

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Abstract

Malaysia is a religiously and ethnically versatile country with a dual legal structure. Essentially, Malaysia's banking system is plural and thus, two different sets of legal systems work at the same time. The semi-permanent conventional banking system has been leveled off by the Islamic banking system which emerged only in 1983. Whether accepted or not, the dual system which emerged only in 1983. Whether accepted or not, the dual system in the society has created challenges and clashes between the two, and these must be addressed and dealt with properly, so as to trim down such clashes to a minimum. Several quarrels exist between conventional and Islamic banking laws; some which arise due to the application of common law or conventional law to justify problems in Islamic banking system. The impact of this is huge; as applying the same legal principles enforced in the conventional banking system to adjudicate conflicts in the Islamic banking system - which has different economic principles - does not work at all. Islam contends for a fair distribution of profits and loss and bans questionable activities unlike the conventional banking capitalistic belief that winner takes all.

Item Type: Article (Journal)
Additional Information: 1525/15216
Uncontrolled Keywords: conventional banking, Islamic banking, Malaysia, dual system, banking systems
Subjects: H Social Sciences > HG Finance > HG1501 Banking
K Law > KPG Malaysia
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User: Dr Rusni Hassan
Date Deposited: 10 Jan 2012 11:41
Last Modified: 10 Jan 2012 11:42
URI: http://irep.iium.edu.my/id/eprint/15216

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