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Dispute between bank and customer in Bai Bithaman Ajil (BBA). Case in Malaysia

Author

Listed:
  • Nurrachmi, Rininta
  • Mohamed, Hamida
  • Nazah, Nawalin

Abstract

This paper discusses the issue and dispute in Bai Bithaman Ajil (BBA) which ended in court cases. It attempts to define the issues and dispute that rise in the practice of BBA and the practical case of BBA in the context of Malaysia and Shariah perspective in regards to BBA practices. Critical analysis from the existence literature is employed to answer the objective of the paper. It shows that the dispute happened due the customer has less understanding regarding the contract in BBA. The court cases that occurred between the bank and the customer were always won by the bank because the bank has more legality and the judge won the bank in order to maintain the good image of Islamic bank in the eye of public.

Suggested Citation

  • Nurrachmi, Rininta & Mohamed, Hamida & Nazah, Nawalin, 2013. "Dispute between bank and customer in Bai Bithaman Ajil (BBA). Case in Malaysia," MPRA Paper 43991, University Library of Munich, Germany, revised 14 Dec 2012.
    • Handle: RePEc:pra:mprapa:43991
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    More about this item

    Keywords

    BBA; Shariah; Bank ; Customer; Financing;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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