Cover Image

Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat

Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financ...

Full description

Saved in:
Bibliographic Details
Main Authors: Abdul Razak, Dzuljastri, Abdul Hameed, Abdul Wahab
Format: Conference or Workshop Item
Language:English
English
Published: 2015
Subjects:
HG Finance
Online Access:http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf
http://irep.iium.edu.my/50113/6/50113-programbook.pdf
http://irep.iium.edu.my/50113/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.iium.irep.50113
record_format dspace
spelling my.iium.irep.501132016-06-01T00:46:11Z http://irep.iium.edu.my/50113/ Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat Abdul Razak, Dzuljastri Abdul Hameed, Abdul Wahab HG Finance Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financing consumer goods rather than entrepreneurial activities such as Musharakah and Mudharabah. Due to the criticisms, some banks are said to be gradually moving from the use of BBA to other forms of Islamic financing. This study investigates the extent to which the concepts of Murabahah and BBA are being used. Secondly, it examines whether there are other concepts that being used to replace them. The findings indicated that the concept of BBA was indeed widely used while the use of murabahah is very minimal. However, banks are gradually shifting to new concepts such as Commodity Murabahah and Tawarruq. Nonetheless, both these concepts as practiced in Malaysia are still based on debt which is less superior than Mudharabah and Musharakah in meeting the true objectives of Maqasid Al Shariah. 2015 Conference or Workshop Item REM application/pdf en http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf application/pdf en http://irep.iium.edu.my/50113/6/50113-programbook.pdf Abdul Razak, Dzuljastri and Abdul Hameed, Abdul Wahab (2015) Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat. In: IIUM International Accounting Conference (INTAC) VI, 28th - 29th October, 2015, Kuala Lumpur. (Unpublished)
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
English
topic HG Finance
spellingShingle HG Finance
Abdul Razak, Dzuljastri
Abdul Hameed, Abdul Wahab
Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
description Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financing consumer goods rather than entrepreneurial activities such as Musharakah and Mudharabah. Due to the criticisms, some banks are said to be gradually moving from the use of BBA to other forms of Islamic financing. This study investigates the extent to which the concepts of Murabahah and BBA are being used. Secondly, it examines whether there are other concepts that being used to replace them. The findings indicated that the concept of BBA was indeed widely used while the use of murabahah is very minimal. However, banks are gradually shifting to new concepts such as Commodity Murabahah and Tawarruq. Nonetheless, both these concepts as practiced in Malaysia are still based on debt which is less superior than Mudharabah and Musharakah in meeting the true objectives of Maqasid Al Shariah.
format Conference or Workshop Item
author Abdul Razak, Dzuljastri
Abdul Hameed, Abdul Wahab
author_facet Abdul Razak, Dzuljastri
Abdul Hameed, Abdul Wahab
author_sort Abdul Razak, Dzuljastri
title Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_short Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_full Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_fullStr Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_full_unstemmed Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_sort evaluation on usage of islamic financing contracts in malaysia: a comparative study of bank islam and bank muamalat
publishDate 2015
url http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf
http://irep.iium.edu.my/50113/6/50113-programbook.pdf
http://irep.iium.edu.my/50113/
_version_ 1643613664486359040
score 13.211869

Similar Items