Management of Murabaha Debts in Islamic Windows of Libyan Commercial Banks: Between Shariah Standards Requirements and Banking Practice A Field Study of a Sample of Commercial Bank Branches Operating in Batn al-Jabal Municipality
Keywords:
Islamic Windows; Murabaha Debt Management; Shariah Standard No. 8; Shariah Standard No. 5; Shariah Standard No. 3.Abstract
This study aimed to assess the extent to which Islamic windows of commercial banks operating in Batn al-Jabal Municipality comply with the Shariah requirements and controls stipulated in the Shariah Standards Nos. 8, 5, and 3 issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for the management of Murabaha debts. The research problem was formulated around the following question: What is the current practice of managing Murabaha debts in Islamic windows of commercial banks operating in Batn al-Jabal Municipality, and to what extent do these practices comply with the Shariah requirements issued by AAOIFI?
The study adopted a descriptive-analytical approach and developed a questionnaire as the primary instrument for data collection. A total of 18 questionnaires were distributed, all of which were valid for statistical analysis. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS).
The findings revealed a high level of compliance with the three Shariah Standards among the Islamic windows of the commercial banks under study—Al-Wahda Bank (Tiji Branch), Jumhouria Bank (Badr Branch), and North Africa Bank (Badr Branch)—operating in Batn al-Jabal Municipality. Compliance with the requirements of the Guarantees Standard (Shariah Standard No. 5) ranked lowest among the three dimensions. The study also found statistically significant differences among the banks with respect to Standard No. 5, attributable to the lower level of compliance at North Africa Bank (Badr Branch) compared with Jumhouria Bank (Badr Branch) and Al-Wahda Bank (Tiji Branch).
The study recommends strengthening awareness within Islamic windows through intensive and specialized training programs targeting all relevant personnel identified within the study population. It also recommends considering the standardization of Shariah-related procedures among the three bank branches operating in Batn al-Jabal Municipality to ensure a more consistent level of Shariah compliance across them.
