Debt-based financing: A case study of Malaysian Islamic banks
The present study aims to address the concept of debt-based financing from the Sharī‘ah perspective and to analyse the current practice of debt-based financing by the Islamic banks in Malaysia. A qualitative research approach is adopted using an in-depth study of the literature through classical and...
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my.um.eprints.450572024-03-12T03:04:02Z http://eprints.um.edu.my/45057/ Debt-based financing: A case study of Malaysian Islamic banks Muneem, Abdul Mohd Razif, Nor Fahimah Ali, Abdul Karim Rosele, Muhammad Ikhlas Islam Banking The present study aims to address the concept of debt-based financing from the Sharī‘ah perspective and to analyse the current practice of debt-based financing by the Islamic banks in Malaysia. A qualitative research approach is adopted using an in-depth study of the literature through classical and contemporary books to address the concept of debt-based financing. The practice of debt-based financing in Islamic banking is studied through the Islamic banks’ official websites. The present study reveals that the current Islamic banking system offers debt-based financing to the customers where the customers are liable to pay the debt through monthly instalments. However, the concept of dayn and the rights and responsibilities of a debtor is not clear to many customers, and the failure of fulfilling the obligation by the customers hinders the smooth operation of the Islamic banks. Moreover, debt-based financing is drawing more attention and interest among most Islamic banks as compared to equity-based financing which is creating more debt. Copyright © 2024 Inderscience Enterprises Ltd. Inderscience Publishers 2024 Article PeerReviewed Muneem, Abdul and Mohd Razif, Nor Fahimah and Ali, Abdul Karim and Rosele, Muhammad Ikhlas (2024) Debt-based financing: A case study of Malaysian Islamic banks. Global Business and Economics Review, 30 (1). 39 – 55. ISSN 1097-4954, DOI https://doi.org/10.1504/GBER.2024.135289 <https://doi.org/10.1504/GBER.2024.135289>. 10.1504/GBER.2024.135289 |
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Islam Banking Muneem, Abdul Mohd Razif, Nor Fahimah Ali, Abdul Karim Rosele, Muhammad Ikhlas Debt-based financing: A case study of Malaysian Islamic banks |
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The present study aims to address the concept of debt-based financing from the Sharī‘ah perspective and to analyse the current practice of debt-based financing by the Islamic banks in Malaysia. A qualitative research approach is adopted using an in-depth study of the literature through classical and contemporary books to address the concept of debt-based financing. The practice of debt-based financing in Islamic banking is studied through the Islamic banks’ official websites. The present study reveals that the current Islamic banking system offers debt-based financing to the customers where the customers are liable to pay the debt through monthly instalments. However, the concept of dayn and the rights and responsibilities of a debtor is not clear to many customers, and the failure of fulfilling the obligation by the customers hinders the smooth operation of the Islamic banks. Moreover, debt-based financing is drawing more attention and interest among most Islamic banks as compared to equity-based financing which is creating more debt. Copyright © 2024 Inderscience Enterprises Ltd. |
format |
Article |
author |
Muneem, Abdul Mohd Razif, Nor Fahimah Ali, Abdul Karim Rosele, Muhammad Ikhlas |
author_facet |
Muneem, Abdul Mohd Razif, Nor Fahimah Ali, Abdul Karim Rosele, Muhammad Ikhlas |
author_sort |
Muneem, Abdul |
title |
Debt-based financing: A case study of Malaysian Islamic banks |
title_short |
Debt-based financing: A case study of Malaysian Islamic banks |
title_full |
Debt-based financing: A case study of Malaysian Islamic banks |
title_fullStr |
Debt-based financing: A case study of Malaysian Islamic banks |
title_full_unstemmed |
Debt-based financing: A case study of Malaysian Islamic banks |
title_sort |
debt-based financing: a case study of malaysian islamic banks |
publisher |
Inderscience Publishers |
publishDate |
2024 |
url |
http://eprints.um.edu.my/45057/ |
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13.18916 |