Review of islamic law against execution of collateral auctions on islamic banking institutions in Aceh
This article discusses the review of Islamic law quoted from jurists’ opinion and legal experts on the use of auction trading theory in collateral sale. Every financial transaction in Islamic banking required a guarantee. It is intended to save bank funds if the customer defaults. Islamic banks,...
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| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/1411/1/FH03-FESP-18-22603.pdf http://eprints.unisza.edu.my/1411/2/FH03-FESP-18-22604.jpg http://eprints.unisza.edu.my/1411/ |
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| Summary: | This article discusses the review of Islamic law quoted from jurists’ opinion and legal experts on
the use of auction trading theory in collateral sale. Every financial transaction in Islamic banking
required a guarantee. It is intended to save bank funds if the customer defaults. Islamic banks,
based on constitutional act Number 4 of 1996 about underwriting rights, have the right to
confiscate the guarantees of customer who has reached the due date without intention to pay.
However, in the implementation, the bank cannot carry out the parate execution to make direct
sales. The banks must take long formal procedures to disburse funds from customer guarantees
and often meet various obstacles. This article will analyze normatively and empirically about the
bail auction guarantees implementation on Islamic banking in Aceh based on the Islamic law
concept from the Alquran, Hadith, and the scholars’ Ijma’. Although it still uses conventional
law, in the auction rules, the implementation of guarantees applied to Islamic banking has
adopted many Islamic laws. however, in the practice, there are still many problems arise from the
Islamic law scope which uphold the philosophy of maslahah and the concept of justice. |
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