Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank

his paper focuses on the challenges faced by the Malaysian Islamic Banks in implementing Musharakah Mutanaqisah (MM) Home Financing. Even though the study is specifically on the Malaysian Islamic banks, but the issues and recommendations addressed in this study are also pertinent to other Islamic...

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Main Authors:	M A Zaaba, Nurul Iffah, Hassan, Rusni
Format:	Article
Language:	English English
Published:	Research Center Islamic Economics-IKAM 2019
Subjects:	HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/1/71832_Why%20Islamic%20Banks%20Are%20Reluctant_article.pdf http://irep.iium.edu.my/71832/2/71832_Why%20Islamic%20Banks%20Are%20Reluctant_wos.pdf

id	iium-71832
recordtype	eprints
spelling	iium-718322019-07-12T02:28:19Z http://irep.iium.edu.my/71832/ Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank M A Zaaba, Nurul Iffah Hassan, Rusni HG Finance HG3368 Islamic Banking and Finance his paper focuses on the challenges faced by the Malaysian Islamic Banks in implementing Musharakah Mutanaqisah (MM) Home Financing. Even though the study is specifically on the Malaysian Islamic banks, but the issues and recommendations addressed in this study are also pertinent to other Islamic banks across the world since they are also offering it. Drawing upon in-depth semi-structured interviews with the senior officers in two leading Islamic banks in Malaysia, one is the bank which terminated its MM Home Financing products however the other one continues to offer it. Knowing the contradicting perspectives of both banks gives insight of the real challenges faced by them in offering MM for home financing which are advance rental and the system’s incapability to capture the unique nature of MM, and at the same time to know the motivation of offering it i.e. product diversification and comprehensive risk mitigation. This paper concludes by making recommendations that may be adopted by Islamic banks and the regulators to facilitate the promotion of MM Home Financing. Notably, this paper offers empirical findings which are different from the previous literature. Research Center Islamic Economics-IKAM 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/71832/1/71832_Why%20Islamic%20Banks%20Are%20Reluctant_article.pdf application/pdf en http://irep.iium.edu.my/71832/2/71832_Why%20Islamic%20Banks%20Are%20Reluctant_wos.pdf M A Zaaba, Nurul Iffah and Hassan, Rusni (2019) Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank. Turkish Journal of Islamic Economics-TUJISE, 6 (1). pp. 51-65. ISSN 2587-2303 E-ISSN 2587-232X https://www.tujise.org/content/7-issues/11-6-1/3-a044/tuj044.pdf 10.26414/A044
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance HG3368 Islamic Banking and Finance
spellingShingle	HG Finance HG3368 Islamic Banking and Finance M A Zaaba, Nurul Iffah Hassan, Rusni Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
description	his paper focuses on the challenges faced by the Malaysian Islamic Banks in implementing Musharakah Mutanaqisah (MM) Home Financing. Even though the study is specifically on the Malaysian Islamic banks, but the issues and recommendations addressed in this study are also pertinent to other Islamic banks across the world since they are also offering it. Drawing upon in-depth semi-structured interviews with the senior officers in two leading Islamic banks in Malaysia, one is the bank which terminated its MM Home Financing products however the other one continues to offer it. Knowing the contradicting perspectives of both banks gives insight of the real challenges faced by them in offering MM for home financing which are advance rental and the system’s incapability to capture the unique nature of MM, and at the same time to know the motivation of offering it i.e. product diversification and comprehensive risk mitigation. This paper concludes by making recommendations that may be adopted by Islamic banks and the regulators to facilitate the promotion of MM Home Financing. Notably, this paper offers empirical findings which are different from the previous literature.
format	Article
author	M A Zaaba, Nurul Iffah Hassan, Rusni
author_facet	M A Zaaba, Nurul Iffah Hassan, Rusni
author_sort	M A Zaaba, Nurul Iffah
title	Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
title_short	Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
title_full	Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
title_fullStr	Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
title_full_unstemmed	Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank
title_sort	why islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of maybank islamic and affin islamic bank
publisher	Research Center Islamic Economics-IKAM
publishDate	2019
url	http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/ http://irep.iium.edu.my/71832/1/71832_Why%20Islamic%20Banks%20Are%20Reluctant_article.pdf http://irep.iium.edu.my/71832/2/71832_Why%20Islamic%20Banks%20Are%20Reluctant_wos.pdf
first_indexed	2023-09-18T21:41:50Z
last_indexed	2023-09-18T21:41:50Z
_version_	1777413192018821120

Why Islamic banks are reluctant to offer musharakah mutanaqisah for home financing: the case of Maybank Islamic and Affin Islamic Bank

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