Can an Islamic bank also adopt this practice and deduct advance installments from its customers out of their leave salary amounts, which will substantially curtail the past-due amounts for the Islamic bank ?
Fatawa Question
Employers pay their staff advance salaries through their respective bank accounts for the leave period when they go on vacation. The employees generally withdraw the full amount without leaving enough balance to cover the installments for the finance they have taken from the Islamic banks that will be due during their leave period. The conventional banks recover the amounts of installments upon receiving leave salaries despite the fact that the installments are not due. It allows them to avoid piling up retail past dues in their books. Can an Islamic bank also adopt this practice and deduct advance installments from its customers out of their leave salary amounts, which will substantially curtail the past-due amounts for the Islamic bank? If yes, what will be the impact of such advance recovery of installments to Murabahah (e.g. car financing) and Ijarah (e.g. home financing), which constitute a major part of an Islamic bank’s retail book.
Fatwa
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Publisher
Publication Date
2013-03-20
Country of Publication
Malaysia
Main Subjects
Economics & Business Administration
Islamic Studies
Data Type
Fatawa
Language
English
Record ID
BIM-784627
American Psychological Association (APA)
Hassan, Husayn Hamid. 2013-03-20. Can an Islamic bank also adopt this practice and deduct advance installments from its customers out of their leave salary amounts, which will substantially curtail the past-due amounts for the Islamic bank ?. . Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-784627
Modern Language Association (MLA)
Hassan, Husayn Hamid. Can an Islamic bank also adopt this practice and deduct advance installments from its customers out of their leave salary amounts, which will substantially curtail the past-due amounts for the Islamic bank ?. Kuala Lumpur Malaysia : Islamic Finance News. 2013-03-20.
https://search.emarefa.net/detail/BIM-784627
American Medical Association (AMA)
Hassan, Husayn Hamid. 2013-03-20. Can an Islamic bank also adopt this practice and deduct advance installments from its customers out of their leave salary amounts, which will substantially curtail the past-due amounts for the Islamic bank ?. Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-784627