Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint

The primary duty of Islamic banks and financial institutions in Malaysia is to carry out Islamic banking and financial activities and to offer products that are in accordance with Islamic teachings. These products are subject to the scrutiny and approval of the Bank Negara's Shariah Advisory Co...

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Main Authors:	Md. Dahlan, Nuarrual Hilal, Syed Abdul Kader , Sharifah Zubaidah
Format:	Article
Language:	English
Published:	LexisNexis 2010
Subjects:	K Law (General)
Online Access:	http://irep.iium.edu.my/11401/ http://irep.iium.edu.my/11401/ http://irep.iium.edu.my/11401/1/2010_-_Shariah_and_legal_issues_in_the_Bay%27_Bithaman-al-Ajil_%28%28BBA%29_-_a_viewpoint.pdf

id	iium-11401
recordtype	eprints
spelling	iium-114012013-04-04T02:28:39Z http://irep.iium.edu.my/11401/ Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint Md. Dahlan, Nuarrual Hilal Syed Abdul Kader , Sharifah Zubaidah K Law (General) The primary duty of Islamic banks and financial institutions in Malaysia is to carry out Islamic banking and financial activities and to offer products that are in accordance with Islamic teachings. These products are subject to the scrutiny and approval of the Bank Negara's Shariah Advisory Council ('SAC') and the internal Shariah Advisory Bodies ('SAB') or the Shariah Commitees of the respective financial institutions. Despite having been in existence for more than 25 years, it remains unclear on whether Islamic banks and financial institutions in Malaysia have been satisfactorily carrying out this duty. One area worth examining is the transaction involving house buying, particularly, falling under the purview of the Housing Development (Control and Licensing) Act 1966 (Act 118) and transactions involving houses pending completion. This paper examines this area of transaction and loan agreement, effected via the Bay' Bithaman al-Ajil ('BBA'), that Islamic banking and financial institutions in Malaysia provide. The purpose of this paper is to examine the extent of which the sale and purchase agreement and the loan agreement have complied with the requirements of Islamic law in protecting stakeholders and to provide practical suggestions to improve the existing practice. The functions, roles, establishment and problems plaguing the SAC and the SAB are also examined, particularly in respect of their role in advising the institutions on transactions involving house buying in Malaysia, bearing on provisions of the recent statute - the Central Bank of Malaysia Act 2009 (Act 701), enforced on 19 August 2009. The paper concludes that the current practice of the BBA is contrary to the teachings of Islam and should be modified and revamped until it is fully able to protect the interests of the purchaser/ borrower. LexisNexis 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/11401/1/2010_-_Shariah_and_legal_issues_in_the_Bay%27_Bithaman-al-Ajil_%28%28BBA%29_-_a_viewpoint.pdf Md. Dahlan, Nuarrual Hilal and Syed Abdul Kader , Sharifah Zubaidah (2010) Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint. Malayan Law Journal, 6. lxxv-cxiii. ISSN 0025-1283 http://www.lexisnexis.com/ap/auth/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	K Law (General)
spellingShingle	K Law (General) Md. Dahlan, Nuarrual Hilal Syed Abdul Kader , Sharifah Zubaidah Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
description	The primary duty of Islamic banks and financial institutions in Malaysia is to carry out Islamic banking and financial activities and to offer products that are in accordance with Islamic teachings. These products are subject to the scrutiny and approval of the Bank Negara's Shariah Advisory Council ('SAC') and the internal Shariah Advisory Bodies ('SAB') or the Shariah Commitees of the respective financial institutions. Despite having been in existence for more than 25 years, it remains unclear on whether Islamic banks and financial institutions in Malaysia have been satisfactorily carrying out this duty. One area worth examining is the transaction involving house buying, particularly, falling under the purview of the Housing Development (Control and Licensing) Act 1966 (Act 118) and transactions involving houses pending completion. This paper examines this area of transaction and loan agreement, effected via the Bay' Bithaman al-Ajil ('BBA'), that Islamic banking and financial institutions in Malaysia provide. The purpose of this paper is to examine the extent of which the sale and purchase agreement and the loan agreement have complied with the requirements of Islamic law in protecting stakeholders and to provide practical suggestions to improve the existing practice. The functions, roles, establishment and problems plaguing the SAC and the SAB are also examined, particularly in respect of their role in advising the institutions on transactions involving house buying in Malaysia, bearing on provisions of the recent statute - the Central Bank of Malaysia Act 2009 (Act 701), enforced on 19 August 2009. The paper concludes that the current practice of the BBA is contrary to the teachings of Islam and should be modified and revamped until it is fully able to protect the interests of the purchaser/ borrower.
format	Article
author	Md. Dahlan, Nuarrual Hilal Syed Abdul Kader , Sharifah Zubaidah
author_facet	Md. Dahlan, Nuarrual Hilal Syed Abdul Kader , Sharifah Zubaidah
author_sort	Md. Dahlan, Nuarrual Hilal
title	Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
title_short	Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
title_full	Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
title_fullStr	Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
title_full_unstemmed	Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint
title_sort	shariah and legal issues in the bay' bithaman-al-ajil (bba): a viewpoint
publisher	LexisNexis
publishDate	2010
url	http://irep.iium.edu.my/11401/ http://irep.iium.edu.my/11401/ http://irep.iium.edu.my/11401/1/2010_-_Shariah_and_legal_issues_in_the_Bay%27_Bithaman-al-Ajil_%28%28BBA%29_-_a_viewpoint.pdf
first_indexed	2023-09-18T20:20:44Z
last_indexed	2023-09-18T20:20:44Z
_version_	1777408088861573120

Shariah and legal issues in the Bay' Bithaman-al-Ajil (BBA): a viewpoint

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