This article aims at examining the concept of ḥawālah and its contemporary applications in banking sector. For this purpose, the authors examine the conceptual and literal meaning of ḥawālah and scrutinise its applications in two Malaysian banks. While Bank A is a dual bank which offers both conventional and Islamic banking, Bank B is a full-fledged Islamic bank. Results indicated that there is a general lack of awareness about the concept of ḥawālah used by both banks. Although there is strong awareness of Islamic Shariah's strong prohibition on taking interest, the staff members are uninformed about the underlying concepts of ḥawālah. In addition, the authors found that the ḥawālah-based services offered by both banks were not significantly different from conventional banks' products and services. It is recommended that further research can be conducted to find out the reluctance among the Islamic banks to name remittance system by using the term ḥawālah.
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