I was reading this article - Practical legal issues in Islamic banking, written by a learned law practitioner with regards to the Islamic banking environment in Malaysia.
In summary, the author listed down issues faced by Islamic banking in Malaysia :
1) Insufficient legal protection
2) Jurisdiction – whether Shariah Vs Civil Court
3) Difficulties in turning concepts into practice
4) Assets to be used as underlying assets – must be owned by customer, free from encumbrances
5) Security to be offered must be Shariah compliant
6) Transaction cost
7) Additional documents and clauses
8) Lack of expertise
The article was written and published in April 2008 and now is mid March 2009 – about a year later and let us compare how far has the situation changes :
a) Items 1, 2, 3, 4, 5, 6, 7, 8
These issues still persist – a good example is the controversial ruling on BBA by the High Court late last year.
It is very sad to note that despite a lot of “hue and cry” from the banking industry, practically nothing has changed ever since.
Will we need to wait for the next millennium to change? Think about it.....
No comments:
Post a Comment