Customers’ attitude towards diminishing partnership home financing in Islamic banking

Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This stu...

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Main Authors:	Razak, Dzuljastri Abdul, Abduh, Muhamad
Format:	Article
Language:	English
Published:	Science Publications 2012
Subjects:	BP173.75 Islam and economics HF5410 Marketing. Distribution of products HG1501 Banking
Online Access:	http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/1/Razak_and_Abduh_AJAS%2C_2012.pdf

id	iium-23697
recordtype	eprints
spelling	iium-236972012-05-07T01:12:57Z http://irep.iium.edu.my/23697/ Customers’ attitude towards diminishing partnership home financing in Islamic banking Razak, Dzuljastri Abdul Abduh, Muhamad BP173.75 Islam and economics HF5410 Marketing. Distribution of products HG1501 Banking Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This study aims to examine customers’ attitude upon diminishing partnership home financing and their intention to subscribe into the financing scheme. Approach: This study gauges customers’ perception on the salient features of diminishing partnership home financing from Islamic banks through a survey of 504 respondents comprise officers, managers and academician in Kuala Lumpur. The structural equation modeling was utilized to find out factors that influence customers’ intention for diminishing partnership home financing under the framework of the theory of reasoned action. Results: The main finding indicates that customers perceived the equity sharing features in diminishing partnership home financing mode differ from the conventional loan and other existing Islamic home financing modes. The result from structural equation modeling shows that customers’ intention for diminishing partnership is more influenced by their subjective norms compared to their attitude toward diminishing partnership home financing. Conclusion: The customers have perceived diminishing partnership as more shariah compliant than bay bi’thaman ajil. Afterwards, opinions from people perceived important by customers are giving more influence towards their decision making process. Science Publications 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/23697/1/Razak_and_Abduh_AJAS%2C_2012.pdf Razak, Dzuljastri Abdul and Abduh, Muhamad (2012) Customers’ attitude towards diminishing partnership home financing in Islamic banking. American Journal of Applied Sciences , 9 (4). pp. 593-599. ISSN 1554-3641(O), 1546-9239 (P) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2012416 10.3844/ajassp.2012.593.599
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	BP173.75 Islam and economics HF5410 Marketing. Distribution of products HG1501 Banking
spellingShingle	BP173.75 Islam and economics HF5410 Marketing. Distribution of products HG1501 Banking Razak, Dzuljastri Abdul Abduh, Muhamad Customers’ attitude towards diminishing partnership home financing in Islamic banking
description	Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This study aims to examine customers’ attitude upon diminishing partnership home financing and their intention to subscribe into the financing scheme. Approach: This study gauges customers’ perception on the salient features of diminishing partnership home financing from Islamic banks through a survey of 504 respondents comprise officers, managers and academician in Kuala Lumpur. The structural equation modeling was utilized to find out factors that influence customers’ intention for diminishing partnership home financing under the framework of the theory of reasoned action. Results: The main finding indicates that customers perceived the equity sharing features in diminishing partnership home financing mode differ from the conventional loan and other existing Islamic home financing modes. The result from structural equation modeling shows that customers’ intention for diminishing partnership is more influenced by their subjective norms compared to their attitude toward diminishing partnership home financing. Conclusion: The customers have perceived diminishing partnership as more shariah compliant than bay bi’thaman ajil. Afterwards, opinions from people perceived important by customers are giving more influence towards their decision making process.
format	Article
author	Razak, Dzuljastri Abdul Abduh, Muhamad
author_facet	Razak, Dzuljastri Abdul Abduh, Muhamad
author_sort	Razak, Dzuljastri Abdul
title	Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_short	Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_full	Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_fullStr	Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_full_unstemmed	Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_sort	customers’ attitude towards diminishing partnership home financing in islamic banking
publisher	Science Publications
publishDate	2012
url	http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/ http://irep.iium.edu.my/23697/1/Razak_and_Abduh_AJAS%2C_2012.pdf
first_indexed	2023-09-18T20:35:50Z
last_indexed	2023-09-18T20:35:50Z
_version_	1777409038885060608

Customers’ attitude towards diminishing partnership home financing in Islamic banking

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