2025 10(2)
DECEMBER 2025
Harmonising Shariah Principles on Debt Recovery Practices of Islamic Banks with Regulations Related to Authorised Debt Management Agency in Malaysia
Uzaimah Ibrahim, uzaimah@iium.edu.my
Safinar Salleh
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, Malaysia
Muhammad Zuhaili Muda
Lembaga Hasil Dalam Negeri Malaysia
Mohammad Hafiz Mohd Zaki
Mahkamah Tinggi Syariah Johor Bahru, Johor, Malaysia
Received: Nov 15, 2025 | Revised: Dec 5, 2025 | Accepted: Dec 8, 2025 | Published: Dec 15, 2025
2025, Vol. 10(2), pp. 83-91. | PDF
DOI: https://doi.org/10.26475/jcil.2025.10.2.09
The philosophy, principles and legal provisions as well as practices of conventional and Islamic financial institutions are different from one another. Particularly in relation to nonperforming loan or financing, the underlying contracts between the Islamic financial institutions and their customers are totally distinctive from that of conventional counterparts which are having a debtor-creditor relationship. In addition, the late payment charges and calculation of such charges are different in the former than the latter. These differences lead to different debt restructuring processes between the two. Albeit these differences, the current policies and regulations related to Debt Management Programme (DMP) for these institutions in Malaysia are the same. Thus, this study aims to analyse and evaluate current debt recovery practices by examining the existing practices of Islamic banks and the regulations on DMP and ascertain the most appropriate approach in harmonising conflicts between Shariah principles of debt recovery and the regulations. The study is qualitative research that will be primarily based on library research. It adopts doctrinal analysis of primary and secondary sources with minor fieldwork to get information on the practices. It is hope that this research can contribute significantly to the knowledge as well as propose the best solution to avoid any possible conflicts.
KEYWORDS
Harmonisation, Shariah, Debt Management Programme
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