An overview of ibra' implementation in Malaysian Islamic Banks / Mohd Ab Malek Md Shah … [et al.]

Md Shah, Mohd Ab Malek and Mohd Jody, Jeniwaty and Shahudin, Mohd Harun and Mahzan, Sulaiman (2016) An overview of ibra' implementation in Malaysian Islamic Banks / Mohd Ab Malek Md Shah … [et al.]. Journal of Contemporary Islamic Studies, 2 (1). pp. 59-68. ISSN 2289-9634

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Abstract

In the normal conventional banking system, customer only has to pay the outstanding principal amount and earned interest at the time when early settlement is made. The financier normally waives the unearned interest. Contractually, customer in Islamic banks has to settle all outstanding selling prices in the case of early settlement. Nevertheless, Islamic bank normally gives ibra' to its customer who made early settlement. This practice of rebate is important to maintain the competitiveness of Islamic banking as a mechanism of providing mutual help in terms of charitable matters within a Muslim society, which is highly recommended by shariah principles. This concept is actually more suitable for the financier who wants to surrender its right over the debt to customers. Hence, this paper aimed to explore the fundamental concept of ibra' as practised by the bankers currently within the ambit of Islamic teaching. In addition, it is hoped that; throughout this study, it would lead to the betterment of understanding of this concept holistically.

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Item Type: Article
Creators:
Creators
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Md Shah, Mohd Ab Malek
UNSPECIFIED
Mohd Jody, Jeniwaty
UNSPECIFIED
Shahudin, Mohd Harun
UNSPECIFIED
Mahzan, Sulaiman
UNSPECIFIED
Subjects: A General Works > Indexes (General)
Divisions: Universiti Teknologi MARA, Shah Alam > Academy of Contemporary Islamic Studies (ACIS)
Journal or Publication Title: Journal of Contemporary Islamic Studies
UiTM Journal Collections: UiTM Journal > Journal of Contempory Islamic Studies (JCIS)
ISSN: 2289-9634
Volume: 2
Number: 1
Page Range: pp. 59-68
Official URL: https://jcis.uitm.edu.my/
Item ID: 16532
Uncontrolled Keywords: Ibra', Interest, Rebate, Financier, Shariah
URI: https://ir.uitm.edu.my/id/eprint/16532

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16532

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