Document Details

Document Type : Article In Journal 
Document Title :
Islamic Banks: Profit Sharing Equity and Credit Control
البنوك الإسلامية: ربحية التمويل القائم على الشراكة ومراقبة الائتمان
 
Subject : Islamic Banks 
Document Language : English 
Abstract : Abstract. This paper deals with three basic issues in Islamic banking: First, how the profit sharing ratios in mudarabah contracts are in principle determined? Second, do the actual sharing ratios result in an equitable division of profit between the banks on the one hand and the depositors on the other? Finally, can the central bank use the profit sharing ratio along with the rate of interest for credit control so as to mitigate leverage lure in a dual banking system? The paper provides a brief explanation as an answer to the first question. The response to the second is negative but is positive to the third. It suggests a policy tool the central banks can possibly use to prevent the sort of credit turmoil as the world is facing today in 2008 because of leverage lure. The tool may also help improve return to investors and thus establish some equity in the distribution of profits. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 23 
Issue Number : 1 
Publishing Year : 1431 AH
2010 AD 
Article Type : Article 
Added Date : Monday, February 28, 2011 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
زبير حسنHasan, Zubair ResearcherDoctoratezubair@inceif.org

Files

File NameTypeDescription
 29184.pdf pdfIslamic Banks: Profit Sharing Equity and Credit Control

Back To Researches Page