Hamdard Islamicus (Dec 2021)
A JURISTIC STUDY OF QALB AL-DAYN IN ISLAMIC BANKS FROM SHARĪ‘AH PERSPECTIVE
Abstract
The purpose of this study is to address qalb al-dayn from classical and contemporary Shar??ah points of view and to analyze the views of Shar??ah scholars regarding the practice of qalb al-dayn. The study follows a qualitative research approach where it applies comparative and descriptive analysis methods to explore the thoughts and opinions of classical and contemporary scholars. The study finds that scholars have diverse opinions regarding the application of qalb al-dayn where most of the scholars do not allow to apply qalb al-dayn at all and some other scholars allow applying qalb al-dayn for solvent debtors only. However, qalb al-dayn can be applied with some rigorous restrictions for the solvent debtors, according to some contemporary scholars. The point that the majority of scholars agree on that is, the application of qalb al-dayn is not permissible for an insolvent debtor. To overcome those issues, Islamic banks may strictly use a rescheduling of a financing facility instead of restructuring a facility while following the guidelines provided by the scholars. The paper provides beneficial insights to the researchers, the Islamic banks, and their customers to avoid the issue of qalb al-dayn, particularly in debt-based financing, and to establish justice among the society and Islamic banks.
