An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective

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building INTELEK Repository
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collectionurl https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072
date 2014-12-04 12:52:46
format Restricted Document
id 10717
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originalfilename 4820-01-FH02-FLAIR-15-02995.pdf
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resourceurl https://intelek.unisza.edu.my/intelek/pages/view.php?ref=10717
spelling 10717 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=10717 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal application/pdf 11 1.6 Adobe Acrobat Pro DC 20 Paper Capture Plug-in ser 2014-12-04 12:52:46 4820-01-FH02-FLAIR-15-02995.pdf UniSZA Private Access An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective Journal of Islamic Law Review Under conventional banking, a debtor who defaults in instalment payment or pays later than the agreed time, will have to pay a charge of interest. However, in Islamic banking and finance, such interest is clearly caught by the prohibition of riba. As an alternative to the charge of interest, Islamic financial institutions impose late payment charge on defaults by its customers. This paper analyses the Malaysian experience in imposing late payment charge for defaults arising out of Islamic banking and finance instruments under the present statutory framework. Basis for allowing late payment charge and types of defaulters were also examined. At the end, this paper suggested some suggestions to ensure the administration of late payment charge is more Shari‘ah compliant. 10 1 107-127
spellingShingle An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
summary Under conventional banking, a debtor who defaults in instalment payment or pays later than the agreed time, will have to pay a charge of interest. However, in Islamic banking and finance, such interest is clearly caught by the prohibition of riba. As an alternative to the charge of interest, Islamic financial institutions impose late payment charge on defaults by its customers. This paper analyses the Malaysian experience in imposing late payment charge for defaults arising out of Islamic banking and finance instruments under the present statutory framework. Basis for allowing late payment charge and types of defaulters were also examined. At the end, this paper suggested some suggestions to ensure the administration of late payment charge is more Shari‘ah compliant.
title An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
title_full An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
title_fullStr An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
title_full_unstemmed An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
title_short An Analysis of Late Payment Charge On Defaulters in Islamic Banking and Finance: A Malaysian Perspective
title_sort analysis of late payment charge on defaulters in islamic banking and finance: a malaysian perspective