Exploring Application of Equity-Based Financing Through Mushārakah Mutanāqiṣah in Islamic Banks in Malaysia: Perspective from the Industry Players (original) (raw)

2015, International Journal of Economics, Management and Accounting

Due to the prohibition of interest in Islamic financial transactions as well as the nature of the Islamic banks which is based on the profit and loss sharing concept, the equity-based financing should be widely adopted rather than debt-based financing which is similar to that of the conventional banks. As such, financing instruments such as Muḍārabah and Mushārakah are supposedly the major financing instruments offered by the Islamic banks. However, as argued in previous studies, the Islamic banks today are concentrating more on debt-based financing, particularly Murābaḥah and Ijārah contracts. Based on survey questionnaires on sixteen Islamic banks

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