Contact us
 |
[email protected] |
 |
3275638434 |
 |
 |
| Paper Publishing WeChat |
Useful Links
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Significance of Musharaka in Islamic Banking
Author(s)
Muhammad Aqib Ali
Talat Hussain
Full-Text PDF
XML 461 Views
DOI:10.17265/1537-1514/2017.01.005
Affiliation(s)
International Islamic Finance & Insurance Institute (IIFII), Faisalabad, Pakistan
University of Management & Technology, Lahore, Pakistan
ABSTRACT
Musharaka
is a truly profit and loss sharing Islamic finance technique is fully in accordance
with the principles and guidelines of Shariah. Being an equity-based and participatory
mode of Islamic finance, Musharaka mechanism conforms to Shariah in letter and spirit.
But on the contrary, the use of Murabaha and other Islamic finance modes is prevalent
in Islamic banking industries around the world, and these modes being non-equity-based
involve the element of debt which creates negative perceptions regarding overall
Islamic banking and finance paradigm. The study discusses the Musharaka structure
in the viewpoint of one of the major stakeholders, i.e., the Islamic bankers, to
promote this mode and to improve the general outlook regarding Islamic finance.
The study is conducted to critically analyze the perceptions and opinions of Islamic
bankers regarding Musharaka as an important mode of Islamic finance and to derive
conclusions about the vitality of Musharaka by evaluating the views of Islamic banking
executives. The research is aimed at assessing the viewpoint of Islamic bankers
regarding the different matters that are ancillary to Musharaka and to identify
the important factors pertinent to this concept. The research findings are based
on survey data collected chiefly through questionnaires and interviews.
KEYWORDS
Musharaka, Islamic banking, Islamic finance, Pakistan, bankers, Islamic perspective
Cite this paper
References