Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia

The current practice of the Islamic banks in Malaysia is relying on the market interest rate as the reference benchmark pricing for musyarakah mutanaqisah home financing. It has been a subject of intense debate among scholars, researchers, industry players, and policymakers. While it is not prohibit...

Full description

Bibliographic Details
Main Authors:	Redzuan, Nur Harena, Kassim, Salina
Format:	Conference or Workshop Item
Language:	English English
Published:	2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/69550/ http://irep.iium.edu.my/69550/ http://irep.iium.edu.my/69550/13/69550%20-%20Rental%20Yield%20as%20an%20Alternative%20to%20Interest%20Rate.pdf http://irep.iium.edu.my/69550/14/69550%20-%20programme%20schedule.pdf

id	iium-69550
recordtype	eprints
spelling	iium-695502019-02-12T08:29:46Z http://irep.iium.edu.my/69550/ Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia Redzuan, Nur Harena Kassim, Salina HG3368 Islamic Banking and Finance The current practice of the Islamic banks in Malaysia is relying on the market interest rate as the reference benchmark pricing for musyarakah mutanaqisah home financing. It has been a subject of intense debate among scholars, researchers, industry players, and policymakers. While it is not prohibited, Muslim scholars have highly discouraged this practice as it could lead to a possible convergence between the practices of the Islamic banks and the conventional counterparts. Therefore, this study proposes rental yield an alternative reference benchmark pricing mechanism for musyarakah mutanaqisah home financing. The aim of the study is to assess whether rental yield is reflective of the real economic conditions. In achieving its objective, the study tests the relationships between rental yield with the macroeconomic and housing market variables. The study focuses on Malaysia and uses annually data frequency covering the period from 1988 to 2015 using Autoregressive Distributed Lag (ARDL) cointegration test. The study provides evidence that the proposed rental yield has long-run and short-run relationships with macroeconomic and housing market variables. The analysis shows that a short period required for the model to adjust back to the long-run equilibrium. The findings of this study would provide important insights on the viability of rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing. 2017 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/69550/13/69550%20-%20Rental%20Yield%20as%20an%20Alternative%20to%20Interest%20Rate.pdf application/pdf en http://irep.iium.edu.my/69550/14/69550%20-%20programme%20schedule.pdf Redzuan, Nur Harena and Kassim, Salina (2017) Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia. In: International Academic Conference on Business and Economics (IACBE 2017), Kuala Terengganu, Terengganu. (Unpublished) https://www.unisza.edu.my/iacbe2017/index.php?lang=en
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Redzuan, Nur Harena Kassim, Salina Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
description	The current practice of the Islamic banks in Malaysia is relying on the market interest rate as the reference benchmark pricing for musyarakah mutanaqisah home financing. It has been a subject of intense debate among scholars, researchers, industry players, and policymakers. While it is not prohibited, Muslim scholars have highly discouraged this practice as it could lead to a possible convergence between the practices of the Islamic banks and the conventional counterparts. Therefore, this study proposes rental yield an alternative reference benchmark pricing mechanism for musyarakah mutanaqisah home financing. The aim of the study is to assess whether rental yield is reflective of the real economic conditions. In achieving its objective, the study tests the relationships between rental yield with the macroeconomic and housing market variables. The study focuses on Malaysia and uses annually data frequency covering the period from 1988 to 2015 using Autoregressive Distributed Lag (ARDL) cointegration test. The study provides evidence that the proposed rental yield has long-run and short-run relationships with macroeconomic and housing market variables. The analysis shows that a short period required for the model to adjust back to the long-run equilibrium. The findings of this study would provide important insights on the viability of rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing.
format	Conference or Workshop Item
author	Redzuan, Nur Harena Kassim, Salina
author_facet	Redzuan, Nur Harena Kassim, Salina
author_sort	Redzuan, Nur Harena
title	Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
title_short	Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
title_full	Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
title_fullStr	Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
title_full_unstemmed	Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia
title_sort	rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in malaysia
publishDate	2017
url	http://irep.iium.edu.my/69550/ http://irep.iium.edu.my/69550/ http://irep.iium.edu.my/69550/13/69550%20-%20Rental%20Yield%20as%20an%20Alternative%20to%20Interest%20Rate.pdf http://irep.iium.edu.my/69550/14/69550%20-%20programme%20schedule.pdf
first_indexed	2023-09-18T21:38:44Z
last_indexed	2023-09-18T21:38:44Z
_version_	1777412996254924800

Rental yield as an alternative to interest rate to price musyarakah mutanaqisah home financing in Malaysia

Similar Items