A comparative analysis between two system calendars in Islamic banking system

Dwidayati, Kunthi Herma and Sulaiman, Noralfishah and Saksono, Tono (2013) A comparative analysis between two system calendars in Islamic banking system. In: 1st FPTP Postgraduate Seminar 2013, 23 December 2013, Fakulti Pengurusan Teknologi dan Perniagaan, UTHM .

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Abstract

Islamic Banking (IBg) in Malaysia continues to grow rapidly and Malaysia is considered to be one of the most advance developed countries among the other Muslim countries that employs this banking system. Concurrently, Islamic Housing Finance (IHF) in Malaysia has been running almost 30 years, began when Bank Islam Malaysia Berhad (BIMB) was established in 1983. Then it allowed other Islamic banks (IB) such as Bank Muamalat Malaysia Berhad (BMMB), Maybank Islamic, CIMB Islamic, AmIslamic Bank and so forth to employ the same concept. However, the practices of IHF still have some issues on compliance with Islamic principles such as riba (usury), maysir (gambling), and gharar (uncertainty). Actually, the other issue is on calendar as a basis of accounting system. Quran Surah At-Taubah: 36-37 depicts that there is a clear guidance for Muslims to use the Islamic Calendar (IC) for his or her mundane and spiritual lives. Contextually, calendar is a system to organising days for religious, social, commercial or administrative purposes. During this time, all IB in Malaysia are using Gregorian Calendar (GC) as the basis of accounting system. GC is a solar year, has 365 days and leap years to the days of 366. Meanwhile, IC is a lunar year and has 354 or 355 days. Interestingly, IC is shorter than GC and this would affect the loan particularly mortgage repayment of Islamic Housing Finance (IHF). Therefore, this paper will discuss and compare IHF in IC and GC particularly to those who taking loan by mortgaging the property.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:islamic calendar (IC); gregorian calendar (GC); islamic banking (IBg)
Subjects:H Social Sciences > HG Finance > HG1501 Banking
Divisions:Faculty of Technology Management and Business > Department of Property Management
ID Code:5777
Deposited By:Normajihan Abd. Rahman
Deposited On:12 Aug 2014 08:44
Last Modified:12 Aug 2014 08:44

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