Islamic banks' dilemma between ideals and practice: debt or equity

Equity financing modes currently adopted by Islamic banks are seen to be based on debt-based formats, originally developed for implementation in in interest-based financing system. With the experience gained over a period, a careful scrutiny of prevalent equity financing techniques could be appropri...

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Bibliographic Details
Main Author: Sadique, Muhammad Abdurrahman
Format: Article
Language:English
Published: Universal Publishers 2010
Subjects:
Online Access:http://irep.iium.edu.my/4051/
http://irep.iium.edu.my/4051/
http://irep.iium.edu.my/4051/1/gjmbr_vol10_issue2_18.pdf
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Summary:Equity financing modes currently adopted by Islamic banks are seen to be based on debt-based formats, originally developed for implementation in in interest-based financing system. With the experience gained over a period, a careful scrutiny of prevalent equity financing techniques could be appropriate in order to assess the level of their success in achieving Islamic economic objectives. With Islamic banking gaining a firm foothold in the banking and commercial sectors, a more dynamic approach to promulgating the ideals of equity participation appears timely.