Towards Harmonisation Of Debt Recovery Activity In Banking To Shariah Compliant

Abstract

This article examines the scenario of debt recovery in banking and highlights on awareness of Shariah approach by structuring and developing the best model in total. For this purpose, the authors examine the reality of debt recovery development in banks as well as agencies pertaining their procedures, laws and ethics. The crucial part is emphasizing the Islamic ethics of debt recovery by referring the spirit of maqasid al-Shariah and Islamic legal maxims and explain how this approach may contribute to better solutions for challenges in Islamic banking industry.By sharing the authors’s experiences in both bank and agency, thus they intend to express their opinion by finding out the possible ways to overcome with. Overall, findings contribute by highlighting the Malaysian practice on recovery activities. Findings are followed by recommendations and future directions.