Islamic law and modern guarantees in Malaysia
The guarantee is regarded as the most common instrument used in the business of commercial banks. Being simplest and least expensive, it is regarded as the most acceptable form of security in the banking lending transactions. However, due to the ‘unfettered discretion’ that the law gives to the cre...
| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2007
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| Online Access: | http://psasir.upm.edu.my/id/eprint/678/ http://psasir.upm.edu.my/id/eprint/678/1/bab09.pdf |
| _version_ | 1848838837017509888 |
|---|---|
| author | Ab Rahman, Suhaimi |
| author_facet | Ab Rahman, Suhaimi |
| author_sort | Ab Rahman, Suhaimi |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The guarantee is regarded as the most common instrument used in the business of commercial banks. Being simplest and least expensive, it is regarded as the most acceptable form of security in the banking lending transactions. However, due to the ‘unfettered discretion’ that the law
gives to the creditor banker upon defaults, the reception of the instrument has decreased. This paper seeks to discuss the above issue in the light of Islamic legal point vis-à-vis the current position of Malaysian law of guarantee. The paper suggests that amendments should be made to the existing laws and this could be made through the process of harmonization of Islamic and Malaysian laws. |
| first_indexed | 2025-11-15T07:01:53Z |
| format | Article |
| id | upm-678 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:01:53Z |
| publishDate | 2007 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-6782015-07-06T23:58:03Z http://psasir.upm.edu.my/id/eprint/678/ Islamic law and modern guarantees in Malaysia Ab Rahman, Suhaimi The guarantee is regarded as the most common instrument used in the business of commercial banks. Being simplest and least expensive, it is regarded as the most acceptable form of security in the banking lending transactions. However, due to the ‘unfettered discretion’ that the law gives to the creditor banker upon defaults, the reception of the instrument has decreased. This paper seeks to discuss the above issue in the light of Islamic legal point vis-à-vis the current position of Malaysian law of guarantee. The paper suggests that amendments should be made to the existing laws and this could be made through the process of harmonization of Islamic and Malaysian laws. Faculty of Economics and Management, Universiti Putra Malaysia 2007-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/678/1/bab09.pdf Ab Rahman, Suhaimi (2007) Islamic law and modern guarantees in Malaysia. International Journal of Economics and Management, 1 (3). pp. 477-501. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol1_no3.htm |
| spellingShingle | Ab Rahman, Suhaimi Islamic law and modern guarantees in Malaysia |
| title | Islamic law and modern guarantees in Malaysia |
| title_full | Islamic law and modern guarantees in Malaysia |
| title_fullStr | Islamic law and modern guarantees in Malaysia |
| title_full_unstemmed | Islamic law and modern guarantees in Malaysia |
| title_short | Islamic law and modern guarantees in Malaysia |
| title_sort | islamic law and modern guarantees in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/678/ http://psasir.upm.edu.my/id/eprint/678/ http://psasir.upm.edu.my/id/eprint/678/1/bab09.pdf |