DIMINISHING MUSHARAKAHIN ISLAMIC BANKS: AN ANALYSIS BASED ON HOME FINANCING

اسلامی بینکوں میں مشارکہ متناقصہ: ہوم فائنانسنگ کے حوالے سے ایک تجزیاتی مطالعہ

  • Muhammad Junaid Ali Khan Research Scholar at University of Karachi
  • Abdul Majid
Keywords: Diminishing Musharakah, Joint Ownership, Lease, Sale & Purchase, Home Financing, Auto Financing, Equipment Financing.

Abstract

Islamic Banking is one of the fastest growing banking systems in the modern world. It has also achieved significant growth in the Pakistani banking sector in the recent decades. Diminishing Musharakah (DM) is an Islamic mode of finance which not only provides home financing facilities to the customers but also provides other long term financing transaction such as machinery and equipment financing in Islamic banks. In September 2020, DM has the largest share in the Islamic banking financing in Pakistan at 34.5 percent. Considering the widespread acceptance of DM, this paper discusses the shariah structure of DM and its use as a home finance product, specifically its variants, in Islamic Banking Institutions. This paper also clarifies the issues which create confusions in the minds of the common public about Islamic banking products, emphasizing the importance of this product for Islamic Banking Institutions

Published
2021-06-30
How to Cite
Muhammad Junaid Ali Khan, & Abdul Majid. (2021). DIMINISHING MUSHARAKAHIN ISLAMIC BANKS: AN ANALYSIS BASED ON HOME FINANCING: اسلامی بینکوں میں مشارکہ متناقصہ: ہوم فائنانسنگ کے حوالے سے ایک تجزیاتی مطالعہ. Islamic Sciences, 4(1). https://doi.org/10.52337/islsci.v4i1.38