Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers

Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers

Meera and Abdul Razak (2005) suggested that the Diminishing Partnership (DP) Home Financing concept can be a viable alternative to Bai Bithaman Ajil (BBA) Home Financing. They argued that DP concept can address issues faced by BBA which is still the main financing mode of Islamic financial...

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Bibliographic Details
Main Authors: Abdul Razak, Dzuljastri, Md Taib, Fauziah
Format: Conference or Workshop Item
Language:English
Published: 2009
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/9751/
http://irep.iium.edu.my/9751/1/IDMAC_09_-_1_-_Dzuljastri_Abdul_Razak%2C_Fauziah_Md._Taib.pdf
id iium-9751
recordtype eprints
spelling iium-97512013-03-20T02:12:10Z http://irep.iium.edu.my/9751/ Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers Abdul Razak, Dzuljastri Md Taib, Fauziah HG1501 Banking Meera and Abdul Razak (2005) suggested that the Diminishing Partnership (DP) Home Financing concept can be a viable alternative to Bai Bithaman Ajil (BBA) Home Financing. They argued that DP concept can address issues faced by BBA which is still the main financing mode of Islamic financial institutions to date. The major issues that have arisen are related to the concepts used, methods of computation, pricing based on interest rate benchmark, Shariah compliant, justice and societal well being. On the other hand, the DP concept is claimed to be free from the above mentioned shortcomings and said to be in line with the spirit of Islam, which promotes risk sharing and its pricing based on rental is considered to be just and fair. As these issues requires in depth understanding of the Shariah parameter as well and banking operations, semi-structured interviews were conducted with six Shariah scholars and six bankers to seek their opinions and viewpoints on the variables investigated. The Shariah scholars generally agreed that DP concept possess greater justice, equity and follows the true spirit of Islam. Contrary to expectation, the overall views of the bankers support the implementation of DP, although there were a few reservations regarding its operations. The actual implementation of DP is a challenge for bankers which require a paradigm shift from their present role as traditional financiers. Key words: Islamic home financing, Bai Bithaman Ajil (BBA), Diminishing Partnership (DP), Shariah scholars, Bankers and Shariah compliant. 2009 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/9751/1/IDMAC_09_-_1_-_Dzuljastri_Abdul_Razak%2C_Fauziah_Md._Taib.pdf Abdul Razak, Dzuljastri and Md Taib, Fauziah (2009) Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers. In: The 3rd ISDEV International Islamic Development Management Conference(IDMAC 2009) , 28-29 October, 2009, Universiti Conference Hall, Universiti Sains Malaysia. (Unpublished)
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Abdul Razak, Dzuljastri
Md Taib, Fauziah
Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
description Meera and Abdul Razak (2005) suggested that the Diminishing Partnership (DP) Home Financing concept can be a viable alternative to Bai Bithaman Ajil (BBA) Home Financing. They argued that DP concept can address issues faced by BBA which is still the main financing mode of Islamic financial institutions to date. The major issues that have arisen are related to the concepts used, methods of computation, pricing based on interest rate benchmark, Shariah compliant, justice and societal well being. On the other hand, the DP concept is claimed to be free from the above mentioned shortcomings and said to be in line with the spirit of Islam, which promotes risk sharing and its pricing based on rental is considered to be just and fair. As these issues requires in depth understanding of the Shariah parameter as well and banking operations, semi-structured interviews were conducted with six Shariah scholars and six bankers to seek their opinions and viewpoints on the variables investigated. The Shariah scholars generally agreed that DP concept possess greater justice, equity and follows the true spirit of Islam. Contrary to expectation, the overall views of the bankers support the implementation of DP, although there were a few reservations regarding its operations. The actual implementation of DP is a challenge for bankers which require a paradigm shift from their present role as traditional financiers. Key words: Islamic home financing, Bai Bithaman Ajil (BBA), Diminishing Partnership (DP), Shariah scholars, Bankers and Shariah compliant.
format Conference or Workshop Item
author Abdul Razak, Dzuljastri
Md Taib, Fauziah
author_facet Abdul Razak, Dzuljastri
Md Taib, Fauziah
author_sort Abdul Razak, Dzuljastri
title Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
title_short Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
title_full Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
title_fullStr Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
title_full_unstemmed Diminishing partnership home financing concept as an alternative to Bai Bithaman Ajil (BBA): empirical evidences from the perceptions of Shariah scholars and bankers
title_sort diminishing partnership home financing concept as an alternative to bai bithaman ajil (bba): empirical evidences from the perceptions of shariah scholars and bankers
publishDate 2009
url http://irep.iium.edu.my/9751/
http://irep.iium.edu.my/9751/1/IDMAC_09_-_1_-_Dzuljastri_Abdul_Razak%2C_Fauziah_Md._Taib.pdf
first_indexed 2023-09-18T20:19:21Z
last_indexed 2023-09-18T20:19:21Z
_version_ 1777408002717908992

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