IIUM Repository

Is any defect in Islamic banking products? a case study of BBA

Htay, Sheila Nu Nu and Syed, Ahmed Salman (2013) Is any defect in Islamic banking products? a case study of BBA. In: International Interdisciplinary Conference on Recent Trends in Commerce Management, Engineering, Technology and Social Sciences”, 25 Feb 2013, Choice College of Arts and Commerce, Karve Road, Karishma Chowk, Behind Mc’Donalds, Kothrud, Pune – 411038..

Download (304kB) | Preview
Download (855kB) | Preview


The rapid growth of Islamic banking and finance plays significant role to provide the financing facility for both Muslims and non-Muslims. One of the most popular Islamic banking products for property financing is Bay’ Bithaman Ajil (BBA). It has been widely used in Malaysian banking environment although this type of product is not allowed in Middle East. When BBA is used to finance for any incomplete property, the unethical problems arise. It is because the banks are forcing the customers to pay and at the end, the customer does not occupy the property and at the same time, they are in debt. Banks should be taking responsibility, rather than putting the entire burden on the customers, in the case of default by property developer. This paper suggests the regulators, industry players and shari’ah scholars to revisit the validity issue of BBA financing for the incomplete product.

Item Type: Conference or Workshop Item (Full Paper)
Subjects: H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr. Sheila Nu Nu Htay
Date Deposited: 25 Jul 2013 10:12
Last Modified: 13 Sep 2013 15:02
URI: http://irep.iium.edu.my/id/eprint/29626

Actions (login required)

View Item View Item


Downloads per month over past year