Rashid, Khalid,(2018), INSTITUTIONAL DEVELOPMENT TO FACILITATE MUSHĀRAKAH AND MUḌĀRABAH MODE OF FINANCING. , International Journal of Economics, Management and Accounting, UNSPECIFIED
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Abstract
This paper is based on the premise that it is not workable for the banks in
their existing form, whether as conventional banks or as Islamic banks, to
implement the profit and loss sharing mode of financing such as Mushārakah
and Muḍārabah. The purpose of this paper is to make some practical
suggestions for facilitating and promoting the use of Mushārakah and
Muḍārabah mode of financing. Rather than focusing on the Sharīʿah
compliance of existing banking instruments, a detailed research and
development work needs to be carried out to develop completely a new form
of institution outside the realm of the conventional banking system, which
provides more workable and sustainable systems for implementing an
alternate mode of financing consistent with the Sharīʿah objectives. This
paper presents a conceptual framework of the functioning of these institutions
and presents an outline of a sample research and development project to set
up one such institution. The institutional concept and the sample project
presented in this paper will contribute significantly to the existing literature
by providing an alternative approach to address the scarcity of Mushārakah
and Muḍārabah financing. It is anticipated that with implementation of the
sample project presented in this paper, the pilot operations of the proposed
institution can be started within six to eight years.
Keywords : | Islamic economics, Profit/Loss sharing, Mushārakah financing, Institutional development, Research in Islamic finance, UNSPECIFIED |
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Journal or Publication Title: | International Journal of Economics, Management and Accounting |
Volume: | 26 |
Number: | 1 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 30 Dec 2019 01:52 |
Last Modified: | 30 Dec 2019 01:52 |
URI: | https://repofeb.undip.ac.id/id/eprint/1128 |