A model of demand for Islamic Banks’ debt-based financing instruments

This paper presents a theoretical analysis of the demand for debt-based financing instruments of the Islamic banks. Debt-based financing, such as through bai bithaman ajil and al-murabahah, is by far the most prominent of the Islamic bank financing system and yet it has been largely ignored in Islam...

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Main Authors:	Mansor Jusoh, Norlin Khalid
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6982/ http://journalarticle.ukm.my/6982/ http://journalarticle.ukm.my/6982/1/4979-13948-1-PB.pdf

id	ukm-6982
recordtype	eprints
spelling	ukm-69822016-12-14T06:42:46Z http://journalarticle.ukm.my/6982/ A model of demand for Islamic Banks’ debt-based financing instruments Mansor Jusoh, Norlin Khalid, This paper presents a theoretical analysis of the demand for debt-based financing instruments of the Islamic banks. Debt-based financing, such as through bai bithaman ajil and al-murabahah, is by far the most prominent of the Islamic bank financing system and yet it has been largely ignored in Islamic economics literature. Most studies instead have been focusing on equity-based financing of al-mudarabah and al-musyarakah. Islamic banks offer debt-based financing through various instruments derived under the principle of exchange or more specifically, the deferred contract of exchange. In this paper we set an analytical framework that is based on an infinitely lived representative agent model to analyze the demand for goods to be purchased by deferred payments. The resulting demand will then be used to derive the demand for Islamic debt. We also investigate theoretically, factors that may have an impact on the demand for Islamic debt. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6982/1/4979-13948-1-PB.pdf Mansor Jusoh, and Norlin Khalid, (2013) A model of demand for Islamic Banks’ debt-based financing instruments. Jurnal Pengurusan, 39 . pp. 31-36. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper presents a theoretical analysis of the demand for debt-based financing instruments of the Islamic banks. Debt-based financing, such as through bai bithaman ajil and al-murabahah, is by far the most prominent of the Islamic bank financing system and yet it has been largely ignored in Islamic economics literature. Most studies instead have been focusing on equity-based financing of al-mudarabah and al-musyarakah. Islamic banks offer debt-based financing through various instruments derived under the principle of exchange or more specifically, the deferred contract of exchange. In this paper we set an analytical framework that is based on an infinitely lived representative agent model to analyze the demand for goods to be purchased by deferred payments. The resulting demand will then be used to derive the demand for Islamic debt. We also investigate theoretically, factors that may have an impact on the demand for Islamic debt.
format	Article
author	Mansor Jusoh, Norlin Khalid,
spellingShingle	Mansor Jusoh, Norlin Khalid, A model of demand for Islamic Banks’ debt-based financing instruments
author_facet	Mansor Jusoh, Norlin Khalid,
author_sort	Mansor Jusoh,
title	A model of demand for Islamic Banks’ debt-based financing instruments
title_short	A model of demand for Islamic Banks’ debt-based financing instruments
title_full	A model of demand for Islamic Banks’ debt-based financing instruments
title_fullStr	A model of demand for Islamic Banks’ debt-based financing instruments
title_full_unstemmed	A model of demand for Islamic Banks’ debt-based financing instruments
title_sort	model of demand for islamic banks’ debt-based financing instruments
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6982/ http://journalarticle.ukm.my/6982/ http://journalarticle.ukm.my/6982/1/4979-13948-1-PB.pdf
first_indexed	2023-09-18T19:48:26Z
last_indexed	2023-09-18T19:48:26Z
_version_	1777406057171124224

A model of demand for Islamic Banks’ debt-based financing instruments

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