Compliance With Customer Obligations In Islamic Banking

Abstract

This article discusses the strategies for resolving non-performing financing in Islamic banks, which face challenges in maintaining liquidity health due to non-performing financing (NPF). This study identifies approaches such as restructuring through rescheduling, changing requirements, and repositioning financing as key steps to the rescue. In addition, litigation and non-litigation settlement measures, including the use of third-party collection agencies and book deletions, are solutions when rescue efforts fail. External factors such as natural disasters and internal factors such as moral hazards are also considered. This study uses a qualitative descriptive method based on field studies and related literature to understand the practices carried out by banks.