Demystifying the contractual duty of care of Islamic banks in Malaysia
The general relationship between a bank and customer is contractual in nature. For conventional banks, the banker-customer relationship is based on the debtor-creditor relationship with the bank earning a profit from a spread made between interest charged on the borrower of funds and interest pai...
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| Format: | Article |
| Language: | English English English |
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IIUM Journal Publication Unit
2019
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| Online Access: | http://irep.iium.edu.my/79864/ http://irep.iium.edu.my/79864/1/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia.pdf http://irep.iium.edu.my/79864/2/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20SCOPUS.pdf http://irep.iium.edu.my/79864/3/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20WOS.pdf |
| _version_ | 1848788859820703744 |
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| author | Abu Bakar, Noor Mahinar Mohd Yasin, Norhashimah |
| author_facet | Abu Bakar, Noor Mahinar Mohd Yasin, Norhashimah |
| author_sort | Abu Bakar, Noor Mahinar |
| building | IIUM Repository |
| collection | Online Access |
| description | The general relationship between a bank and customer is contractual
in nature. For conventional banks, the banker-customer relationship is based
on the debtor-creditor relationship with the bank earning a profit from a spread
made between interest charged on the borrower of funds and interest paid to
the depositors. In Islamic banking, due to the different contractual transactions
of Islamic banking operation, it is based on a multi-contractual relationships.
However, bank consumers perceive that banks enhance their profits by treating
consumers unfairly and failing to take responsibility when things go wrong.
This study examines the duty of care of conventional and Islamic banks towards
bank consumers. It also focuses on the Islamic banks’ duty of care from the
perspective of maqāṣid al-Sharī‛ah, to those who use their services. Adopting
the doctrinal analysis method, this study analyses and compares the duty of
care of both conventional and Islamic banks. Findings of this study include
that misconduct by banking industries remains rife and that unfair treatment of
customers are frequent. As for Islamic banks, the maqāṣid al-Sharī‛ah based
duty of care is found missing in their Islamic banking operation. This study
suggests that the duty of care for both banks should be reformed to improve
bank consumers’ experience. For Islamic banks, an improved standard is useful
in performing their duties based on Islamic values. |
| first_indexed | 2025-11-14T17:47:31Z |
| format | Article |
| id | iium-79864 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T17:47:31Z |
| publishDate | 2019 |
| publisher | IIUM Journal Publication Unit |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-798642020-03-27T02:24:36Z http://irep.iium.edu.my/79864/ Demystifying the contractual duty of care of Islamic banks in Malaysia Abu Bakar, Noor Mahinar Mohd Yasin, Norhashimah HG1501 Banking The general relationship between a bank and customer is contractual in nature. For conventional banks, the banker-customer relationship is based on the debtor-creditor relationship with the bank earning a profit from a spread made between interest charged on the borrower of funds and interest paid to the depositors. In Islamic banking, due to the different contractual transactions of Islamic banking operation, it is based on a multi-contractual relationships. However, bank consumers perceive that banks enhance their profits by treating consumers unfairly and failing to take responsibility when things go wrong. This study examines the duty of care of conventional and Islamic banks towards bank consumers. It also focuses on the Islamic banks’ duty of care from the perspective of maqāṣid al-Sharī‛ah, to those who use their services. Adopting the doctrinal analysis method, this study analyses and compares the duty of care of both conventional and Islamic banks. Findings of this study include that misconduct by banking industries remains rife and that unfair treatment of customers are frequent. As for Islamic banks, the maqāṣid al-Sharī‛ah based duty of care is found missing in their Islamic banking operation. This study suggests that the duty of care for both banks should be reformed to improve bank consumers’ experience. For Islamic banks, an improved standard is useful in performing their duties based on Islamic values. IIUM Journal Publication Unit 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/79864/1/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia.pdf application/pdf en http://irep.iium.edu.my/79864/2/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20SCOPUS.pdf application/pdf en http://irep.iium.edu.my/79864/3/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20WOS.pdf Abu Bakar, Noor Mahinar and Mohd Yasin, Norhashimah (2019) Demystifying the contractual duty of care of Islamic banks in Malaysia. Intellectual Discourse, 27 (S1 (Special Issue on Disability Studies)). pp. 695-718. ISSN 0128-4878 E-ISSN 2289-5639 https://journals.iium.edu.my/intdiscourse/index.php/islam/article/view/1452/885 |
| spellingShingle | HG1501 Banking Abu Bakar, Noor Mahinar Mohd Yasin, Norhashimah Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title | Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title_full | Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title_fullStr | Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title_full_unstemmed | Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title_short | Demystifying the contractual duty of care of Islamic banks in Malaysia |
| title_sort | demystifying the contractual duty of care of islamic banks in malaysia |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/79864/ http://irep.iium.edu.my/79864/ http://irep.iium.edu.my/79864/1/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia.pdf http://irep.iium.edu.my/79864/2/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20SCOPUS.pdf http://irep.iium.edu.my/79864/3/79864%20Demystifying%20the%20Contractual%20Duty%20of%20Care%20of%20Islamic%20Banks%20in%20Malaysia%20WOS.pdf |