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

Syed, Ahmed Salman and Htay, Sheila Nu Nu (2013) Is any defect in Islamic banking products? a case study of BBA. International Journal of Business, Management & Social Sciences, 2 (7). pp. 49-51. ISSN 2249 - 7463

Preview

PDF - Published Version Download (278kB) | Preview

Abstract

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:	Article (Journal)
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 09:06
Last Modified:	25 Jul 2013 09:06
URI:	http://irep.iium.edu.my/id/eprint/30959

Actions (login required)

View Item