• Sharifah Faigah Syed Alwi Arshad Ayub Graduate Business School, Universiti Teknologi Mara
  • Nur Amirah Atiqah Mohd Faiz Ng Top Glove Corporation Berhad, Kuala Lumpur
  • Nur Husna Rusman RHB Bank, Kuala Lumpur
  • Mohammad Firdaus Mohammad Hatta Arshad Ayub Graduate Business School, Universiti Teknologi Mara
  • Aula Ahmad Hafidh Saiful Fikri Faculty of Economics, Universitas Negeri Yogyakarta




Restructuring, rescheduling, Shariah issues, operational issues, Islamic banks


The Central Bank of Malaysia ordered all banks to give an automatic six months moratorium or loan or financing deferment starting April, 1 2020 to their customers during the Covid-19 pandemic since many customers had difficulties paying their monthly financing obligations to banks. Thus, the objective of this paper is to explore the bankers’ perspectives on Shariah and operational issues arising in Islamic banks in implementing moratorium which involves restructuring and rescheduling financing facilities during Covid-19 pandemic. At the same time, the methods these bankers used to manage the issues are also highlighted in this paper. A qualitative analysis is applied in this paper where the researchers conducted interview sessions with the Head of Shariah Department from an Islamic banking window and another from the Development Financial Institution which offers Islamic banking products and services. This study's findings show that there are certain perspectives from bankers in dealing with Shariah issues regarding restructuring and rescheduling during moratorium such as the issue of qalb al-dayn (debt restructuring), capitalization of accrued profit in the financing facilities as well as the operational issues related to the system and people. It can be deduced then that all Islamic banks were doing extremely well in their steadfast endeavors towards offering remedies to the issues faced for the sake of the overall improvement of Islamic banks in the implementation of restructuring and rescheduling of financing facilities as outlined by guidelines or Resolutions issued by the Shariah Advisory Council of Bank Negara Malaysia.


Metrics Loading ...

Author Biographies

Mohammad Firdaus Mohammad Hatta, Arshad Ayub Graduate Business School, Universiti Teknologi Mara

Arshad Ayub Graduate Business School

Aula Ahmad Hafidh Saiful Fikri, Faculty of Economics, Universitas Negeri Yogyakarta

Faculty of Economics


Ahmad Syahir Yahya, Wan Nur Syuhada Wan Norhaidi & Khairul Fikry Jamaludin (2020). Covid-19 Pandemic: Rescheduling or Restructuring of Financing/Loan Facilities With Banking and Financial Institutions. @azmilawNewsletter. https://www.azmilaw.com/insights/covid-19-pandemic-rescheduling-or-restructuring-of-financing-loan-facilities-with-banking-and-financial-institutions/

Aznan Hasan, Muhamad Nasir Haron, Mohd Faysal Mohammed, and Budeeman Mana (2018). ‘Rescheduling and Restructuring of Islamic Financing Facilities: A Sharīʿah Perspective,’ ISRA Research Paper, no. 100 (Malaysia: International Sharīʿah Research Academy of Islamic Finance (ISRA), 2018).

Babulal, V. & Othman, N.Z. (2020, April 10). Sri Petaling Tabligh gathering remains Msia's largest Covid-19 cluster. New Straits Times. https://www.nst.com.my/news/nation/2020/04/583127/sri-petaling-tabligh-gathering-remains-msias-largest-covid-19-cluster.

Bernama (2020, October 9). AirAsia confirms layoffs. New Straits Times. https://www.nst.com.my/news/nation/2020/10/631023/airasia-confirms- layoffs.

Center for Strategic & International Studies. (2020, May 10). Southeast Asia Covid-19 Tracker. https://www.csis.org/programs/southeast-asia-program/projects/southeast-asia-covid-19-tracker.

Central Bank of Malaysia. (2020a, March 25). CBM 2020a Measures to Assist Individuals, SMEs and Corporates Affected by COVID-19. https://www.bnm.gov.my/-/measures-to-assist-individuals-smes-and-corporates-affected-by-covid-19

Central Bank of Malaysia. (2020b). The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 30th Special meeting (revised on 16 October 2020). https://www.bnm.gov.my/-/the-shariah-advisory-council-of-bank-negara-malaysia-the-sac-30th-special-meeting-1

Daim, N. (2020, March 25). Six-month moratorium on bank loans, restructuring of credit card payments. New Straits Times. https://www.nst.com.my/news/government-public-policy/2020/03/577922/six-month-moratorium-bank-loans-restructuring-credit.

Elengoe, A. (2020). COVID-19 Outbreak in Malaysia. Osong Public Health Res Perspect, 11(3), 93-100. doi:10.24171/j.phrp.2020.11.3.08

Ghazali, N. B. M. (2014). Tawarruq in Malaysian Financing System: A Case Study on Commodity Murabahah Product at Maybank Islamic Berhad (Unpublished master’s thesis). University of Malaya. Kuala Lumpur.

Ibrahim, M.S.M. (2021, November 5). BNM’s Shariah Advisory Council issues ruling to prohibit the compounding of profit for restructuring and rescheduling of Islamic financing. Skrine. https://www.skrine.com/insights/alerts/november-2021/bnms-shariah-advisory-council-issues-ruling-to-pr#:~:text=On%2027%20October%202021%2C%20Bank,accrued%20profit%20from%20the%20original

Jonsson, S. (2014). The appropriate banker and the need for ontological re-positioning. Scandinavian Journal of Management, 30(3), 372-381. doi:10.1016/j.scaman.2014.01.005

Law, K. S., & Chung, F.-L. (2020). Knowledge-driven decision analytics for commercial banking. Journal of Management Analytics, 7(2), 209-230. doi:10.1080/23270012.2020.1734879

Lim, L. L. (2020, July 21). The socioeconomic impacts of COVID-19 in Malaysia: Policy review and guidance for protecting the most vulnerable and supporting enterprises. International Labour Organization. https://www.ilo.org/asia/publications/WCMS_751600/lang--en/index.htm

Lovell, D., Dolamore, S., & Collins, H. (2021). Examining Public Organization Communication Misalignments During COVID-19 Through the Lens of Higher Education. Administration & Society. 54(2), doi:10.1177/00953997211026949

Mat Ali, S. A., Arshad, A., & Ibrahim, I. (2021). Relief Measures of Islamic Finance in Combating Adverse Impacts of Covid 19 in Malaysia: An Analysis. International Journal of Law, Government and Communication, 6(24), 116-134. doi:10.35631/ijlgc.624008

Muneem, A., Razif, N. F. M., & Ali, A. K. (2020). Issues on Restructuring of a Financing Facility in Malaysian Islamic Banks. Jurnal Syariah, 28(1).105-126.

Nazih Ḥammad (2011). Qalb al-Dayn Ṣuwaruhu wa Aḥkamuhu wa Bada’iluhu al-Shar‘iyyah fi Mu‘amalat al-Maṣarifiyyah al-Islamiyyah al-Muʿaṣarah. 4th Fiqh Conference for Islamic Finance Institutions, Kuwait.

Pettinger, T. (2018, December 11). The Domino Effect. Economics. https://www.economicshelp.org/blog/143772/economics/the-domino-effect/.

Shaharuddin, A. (2020). Do Islamic Banks Act ‘Islamic’ During COVID-19 Pandemic. The Journal of Muamalat and Islamic Finance Research. Vol. 17, Special Issues 2020, Pp. 3-12. DOI: https://doi.org/10.33102/jmifr.v17i3.279

Shariah Advisory Council of Bank Negara Malaysia. (2020, October 16). The Shariah Advisory Council of Bank Negara Malaysia (SAC) Ruling on Restructuring and Rescheduling of Islamic Financing Facility during COVID-19 Crisis. Bank Negara Malaysia. https://www.bnm.gov.my/documents/20124/1085561/SAC+Statement+30th+SAC+Special+meeting+%28revised%29+ENG+16102020.pdf

Shariah Advisory Council of Bank Negara Malaysia. (2021). Ruling of the Shariah Advisory Council of Bank Negara Malaysia (SAC) on Compounding Profit for Restructuring and Rescheduling (R&R) of Islamic Financing. Bank Negara Malaysia. https://www.bnm.gov.my/-/bnm-sac-214-ruling#:~:text=The%20Shariah%20Advisory%20Council%20(SAC,principal%20amount%20of%20R%26R%20financing.

Tang, K. H. D. (2020). Movement control as an effective measure against Covid-19 spread in Malaysia: an overview. Z Gesundh Wiss, 1-4. doi:10.1007/s10389-020-01316-w

The Association of Banks in Malaysia. (2021, March 22). Loan Deferment. https://www.abm.org.my/consumer-information/loan-deferment.

World Health Organization (2020, Dec 12). Coronavirus disease (COVID-19) pandemic. Retrieved Dec 12, 2020, from https://www.euro.who.int/en/health-topics/health-emergencies/coronavirus-covid-19/novel-coronavirus-2019-ncov.




How to Cite

Syed Alwi, S. F., Mohd Faiz Ng, N. A. A. ., Nur Husna Rusman, Mohammad Firdaus Mohammad Hatta, & Aula Ahmad Hafidh Saiful Fikri. (2023). EXPLORING THE BANKERS’ PERSPECTIVES ON SHARIAH AND OPERATIONAL ISSUES OF RESTRUCTURING AND RESCHEDULING IN ISLAMIC FINANCING DURING COVID-19 PANDEMIC. International Journal of Islamic Business, 8(2), 44–57. https://doi.org/10.32890/ijib2023.8.2.4




Most read articles by the same author(s)