Islamic financial institutions and participatory finance constraints : the case of Pakistan

المؤلفون المشاركون

Ali, Azzam
Kishwar, Tanveer
Zulkhibri, Muhammad

الناشر

البنك الإسلامي للتنمية المعهد الإسلامي للبحوث و التدريب

تاريخ النشر

2018-05-08

دولة النشر

السعودية

عدد الصفحات

26

التخصصات الرئيسية

العلوم المالية و المحاسبية
الدراسات الإسلامية

الملخص الإنجليزي

Islamic financial contracts are designed to facilitate financing according to Islamic norms.

Islamic financing in its first stages used only the partnership modes of Musharakah and Mudarabah.

Later it is realized that, to avoid moral hazards, yet compete successfully with conventional banks, it is necessary to use all permissible Islamic modes and consequently, trade and leasing techniques were developed.

This paper aims to identify the constraints faced by Islamic financial institutions in the adoption of participatory finance i.e., Musharakah and Mudarabah financing.

The two basic categories of financing are: 1) profit-and-loss-sharing (PLS), also called participatory finance, i.e.

Musharakah and Mudarabah and 2) purchase and hire of goods or assets and services on a fixed-return basis, i.e., Murabahah, Istisna', Salam and Ijarah also called non-participatory finance.

This paper suggests that innovation and creativity is necessitated more than ever to promote participatory modes of financing and to make it the preferred choice for meeting the increasingly sophisticated and diversified financial needs.

• APA
• MLA
• AMA

لغة النص

الإنجليزية

نوع الوثيقة

كتاب

الملاحظات

Includes bibliographical references

رقم السجل

BIM-855244