What is the insolvency regime applied under Shariah for Islamic banks?

Thumbnail Image

Abstracts views


Views & Download


This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and post-bankruptcy stages. The research adopts a qualitative research method, using a desktop research approach. Primary sources and secondary sources are examined to gather information and draw conclusions. This study presents a comprehensive insolvency model designed for Islamic banks, rooted in Shariah principles. The model covers pre-insolvency, bankruptcy (taflis) and post-bankruptcy stages, incorporating key Shariah parameters to ensure adherence to Islamic finance principles. It addresses challenges such as adapting to dynamic financial landscapes and varying interpretations of Shariah principles. Notably, the model recognizes the separate legal personality of Islamic banks and emphasizes transparency, fairness and compliance with religious obligations. In the post-bankruptcy stage, directors are urged to voluntarily settle remaining debts, aligning with ethical and Shariah-compliant standards. The study contributes to the stability and growth of Shariah-compliant financial systems by extending insolvency principles to Islamic banks, providing a foundation for future research and policymaking specific to this context.
Islamic banks , Insolvency , Shariah perspective , Artificial persons , Companies , Iflas
Md Nor, A. H., Muneeza, A., & A. Mohsin, M. I. (2024). What is the insolvency regime applied under Shariah for Islamic banks? International Journal of Law and Management.
Emerald Publishing Limited

What_is_the_insolvency_regime_applied_under_Shariah_for_Islamic_banks_Aishath Muneeza_Magda Ismail.pdf

Size: 235.45 KBFormat: pdf

Views: 0 Downloads: 2

Link Entity

Person Search Results

Now showing 1 - 2 of 2