vol 18 no 3,2018

The Effect of Liquidation of a Bankrupt Islamic Bank on the Rights of Credit Account Depositors

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The Effect of Liquidation of a Bankrupt Islamic Bank on the Rights of Credit Account Depositors

        Prof. Hussein Samhan                             Dr.Malak Noureddin Khasawneh
Zarqa University                         Zarqa University
Islamic Banks department                         Islamic Banks department
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Received 21 /12 / 2017                                                          Accepted 27/6/2018

https://doi.org/10.12816/0054764

Abstract:
The study aims at determining the effect of liquidation of a bankrupt Islamic bank on the rights of credit account depositors according to the Companies law and Shari'ah conditions.
The researchers concluded that the full rights of the depositors in credit accounts must be guaranteed in all cases including the bankrupt Islamic bank liquidation, even if the assets of the Islamic bank are not enough to pay these rights; because of the characterization of credit accounts contracts as loans. Shari'ah principles reflect the responsibility of the debtor in bearing losses as well as deserving profits resulting from exploitation of the loan.
Finally, the researchers made several recommendations; the most important one is a proposal for Islamic banks to cooperate with legally approved insurance entities or with the Deposit Guarantee Institution to guarantee payment of all credit depositors' rights.
Key words: liquidation of a bankrupt Islamic Bank, rights of depositors in credit accounts.

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