Implementation of Islamic Elements as a Parameter for Credit Evaluation Process: Exploring Shariah Adviser’s Perceptions

Mohamad, Siti Nor Amira; Basah, Mohamad Yazis Ali; Aziz, Muhammad Ridhwan Ab.

doi:10.6007/ijarbss/v8-i6/4267

Cited by 1 publication

(9 citation statements)

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“…The most recent study on credit evaluation in Maqasid Shariah perspective was conducted by Mohamad et al (2018). This research was conducted to understand the credit evaluation process based on Islamic values of Adl, Ukhwah, Istiqomah, Akhlak, Syura and Tawakkal, as well as elements of Maqasid Shariah which are Daruriyyah, Hajiyyah and Tahsiniyyah.…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Hassan (2020) suggested that 5Cs and CAMPARI are the most famous evaluation model being used, while the other evaluation models have similar elements with these two models. Mohamad et al (2018) conducted a study comparing two famous models, i.e. 5Cs and CAMPARI, which revealed that Full-fledge Islamic banks tend to use CAMPARI evaluation model as compared to 5Cs due to the existence of elements of ability to pay, character and amount.…”

Section: Credit Evaluation Toolsmentioning

confidence: 99%

“…Shu-Teng et al ( 2015), addressed that one of the key determinants in loan repayment performance is borrower's characters which the study defined character as borrower's education level. Mohamad et al (2018) suggested that Character is one of the important elements for Islamic banks. In another study conducted by Mohamad et al (2018), the study examined owner's character based on Akhlak (Islamic ethics) which translated into good conduct, morals and character of a person.…”

Section: Banking Financing For Malaysian Smesmentioning

confidence: 99%

“…Islamic banking shall analyze the financing application by embracing Shariah considerations. Mohamad et al (2018) further argue that Islamic banking's behaviors toward these seven aspects may differ from conventional banking, given its spirit of risk-sharing and its approach based on Maqasid Shariah, compared to conventional banking. Islamic rulings i.e.…”

Section: Introductionmentioning

confidence: 97%

“…In the lenses of Islamic banking, Islamic banking is well known as ethical banking or high moral banking (Mohamad, Basah, and Aziz, 2018), which supposedly to be more proactive in empowering business through financing. Islamic banks are expected to uphold Islamic rulings (Shariah) in their business framework and principles, in which Maqasid Shariah promotes social justice to the mankind and other creations (Oladapo and Ab Rahman, 2016).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Credit Evaluation by the Small-Medium Sized Enterprises: Maqasid Shariah Approach

Aziz¹,

Rasid²,

Aziz³

2021

IJARBSS

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This paper aims to examine the practice of credit evaluation by Islamic banking in evaluating financing proposals from the SMEs in Malaysia. Also, how the approach of Maqasid Shariah which encompasses of religion, life, lineage, intellect and property influencing the application of credit evaluation from the SMEs. This paper measures credit evaluation on Islamic banks based on review of literature; the inputs are extracted from the existing relevant studies on the subject matter. The findings reveal that that the elements of Maqasid Shariah are not being considered meticulously for credit evaluation processes. The Maqasid Shariah approach in credit evaluation could bring significant values for SMEs in securing financing. This novel study significantly focuses on how the SMEs in Malaysia process the credit evaluation based on the CAMPARI model while adapting the concept of Maqasid Shariah. As this conceptual paper focuses on the previous research and existing available data, the paper is a steppingstone that enables the researchers to obtain an inclusive and complete perspective and solutions for both Islamic banking system and their customers.

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Section: Review Of the Literaturementioning

confidence: 99%

Section: Credit Evaluation Toolsmentioning

confidence: 99%