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Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.

Bai Bithamall Ajil (BBA) is the most predominant mode of home financing in Malaysia since the introduction ofIslamic banking in 1983. The BBA is a deferred installment sale where bank capitalizes on its profit up front in the sale of property. The concept is similar to debt financing which is often...

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Main Authors: Abdul Razak, Dzuljastri, Mohamed, Mustafa Omar, Md Taib, Fauziah
Format: Book Chapter
Language:English
Published: IIUM Press 2011
Subjects:
HG Finance
Online Access:http://irep.iium.edu.my/18739/1/Consumers%27_Acceptance_of_Islamic_Home_Financing.pdf
http://irep.iium.edu.my/18739/
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spelling my.iium.irep.187392017-06-13T03:51:26Z http://irep.iium.edu.my/18739/ Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia. Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Md Taib, Fauziah HG Finance Bai Bithamall Ajil (BBA) is the most predominant mode of home financing in Malaysia since the introduction ofIslamic banking in 1983. The BBA is a deferred installment sale where bank capitalizes on its profit up front in the sale of property. The concept is similar to debt financing which is often resulted in high cost.The BBA as practiced in Malaysia is seen not to be in compliant with the Shariah principle as the bank does not take the risk of ownership and liability of the property. Given the controversial features of the BBA, it is anticipated that there was high level of dissatisfaction among the present and potential BBA customers, including Muslims and the NonMuslims. Based on a survey of 300 owners and potential house owners, there was high level of dissatisfaction among customers, as evidenced by their low intention to use the BBA. Muslim customers in general are concerned about the features ofBBA notably its compliance with Shariah as well as its inability to fulfill the broad objective ofjustice, equality and societal well being. The Non-Muslim customers however, seem to have greater beliefs in BBA and its ability to fulfill socially desirable objectives. The discontent feelings signal the urgent need by the bankers to come up with altematives of Islamic home financing product. lvfusharakah Aflltallaqisah or the Diminishing Partnership concept has been proposed to replace BBA for its esteemed features IIUM Press 2011 Book Chapter REM application/pdf en http://irep.iium.edu.my/18739/1/Consumers%27_Acceptance_of_Islamic_Home_Financing.pdf Abdul Razak, Dzuljastri and Mohamed, Mustafa Omar and Md Taib, Fauziah (2011) Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia. In: Islamic Banking & Finance: Issues & Solutions. IIUM Press, Kuala Lumpur, pp. 11-39. ISBN 9789670225906 http://rms.research.iium.edu.my/bookstore/default.aspx
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Abdul Razak, Dzuljastri
Mohamed, Mustafa Omar
Md Taib, Fauziah
Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
description Bai Bithamall Ajil (BBA) is the most predominant mode of home financing in Malaysia since the introduction ofIslamic banking in 1983. The BBA is a deferred installment sale where bank capitalizes on its profit up front in the sale of property. The concept is similar to debt financing which is often resulted in high cost.The BBA as practiced in Malaysia is seen not to be in compliant with the Shariah principle as the bank does not take the risk of ownership and liability of the property. Given the controversial features of the BBA, it is anticipated that there was high level of dissatisfaction among the present and potential BBA customers, including Muslims and the NonMuslims. Based on a survey of 300 owners and potential house owners, there was high level of dissatisfaction among customers, as evidenced by their low intention to use the BBA. Muslim customers in general are concerned about the features ofBBA notably its compliance with Shariah as well as its inability to fulfill the broad objective ofjustice, equality and societal well being. The Non-Muslim customers however, seem to have greater beliefs in BBA and its ability to fulfill socially desirable objectives. The discontent feelings signal the urgent need by the bankers to come up with altematives of Islamic home financing product. lvfusharakah Aflltallaqisah or the Diminishing Partnership concept has been proposed to replace BBA for its esteemed features
format Book Chapter
author Abdul Razak, Dzuljastri
Mohamed, Mustafa Omar
Md Taib, Fauziah
author_facet Abdul Razak, Dzuljastri
Mohamed, Mustafa Omar
Md Taib, Fauziah
author_sort Abdul Razak, Dzuljastri
title Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
title_short Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
title_full Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
title_fullStr Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
title_full_unstemmed Consumers' acceptance on Islamic home financing : empirical evidence on Bai Bithaman Ajil(BBA) in Malaysia.
title_sort consumers' acceptance on islamic home financing : empirical evidence on bai bithaman ajil(bba) in malaysia.
publisher IIUM Press
publishDate 2011
url http://irep.iium.edu.my/18739/1/Consumers%27_Acceptance_of_Islamic_Home_Financing.pdf
http://irep.iium.edu.my/18739/
http://rms.research.iium.edu.my/bookstore/default.aspx
_version_ 1643607511358504960
score 13.211869

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