Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract
This note uncovers the beauty of Islamic finance via its Profit-Loss Sharing Contract (PLSC) as a financing tool in helping the economy and businesses to recover from COVID-19 economic crisis. PLSC is a contract that shares business risks between participants, while Interest-Based Contract (IBC)...
Saved in:
Main Authors: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
|
Online Access: | http://journalarticle.ukm.my/16766/1/43171-139603-1-PB.pdf http://journalarticle.ukm.my/16766/ https://ejournal.ukm.my/pengurusan/issue/view/1328 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my-ukm.journal.16766 |
---|---|
record_format |
eprints |
spelling |
my-ukm.journal.167662021-06-14T02:44:25Z http://journalarticle.ukm.my/16766/ Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract Aisyah Abdul-Rahman, Gholami, Reza This note uncovers the beauty of Islamic finance via its Profit-Loss Sharing Contract (PLSC) as a financing tool in helping the economy and businesses to recover from COVID-19 economic crisis. PLSC is a contract that shares business risks between participants, while Interest-Based Contract (IBC) requires entrepreneurs to bear the entire business risks. Besides its fairness and justice in wealth creation and income distribution, past literature have shown that PLSC has been successfully adopted in various countries across industries. Redesign of mind-set and role from self-interest to common interest and from intermediaries to entrepreneurs are needed for the financial sector to embrace the benefits of PLSC towards achieving economic and societal sustainability. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16766/1/43171-139603-1-PB.pdf Aisyah Abdul-Rahman, and Gholami, Reza (2020) Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract. Jurnal Pengurusan, 59 . pp. 1-5. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1328 |
institution |
Universiti Kebangsaan Malaysia |
building |
Tun Sri Lanang Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
Universiti Kebangsaan Malaysia |
content_source |
UKM Journal Article Repository |
url_provider |
http://journalarticle.ukm.my/ |
language |
English |
description |
This note uncovers the beauty of Islamic finance via its Profit-Loss Sharing Contract (PLSC) as a financing tool in
helping the economy and businesses to recover from COVID-19 economic crisis. PLSC is a contract that shares
business risks between participants, while Interest-Based Contract (IBC) requires entrepreneurs to bear the entire
business risks. Besides its fairness and justice in wealth creation and income distribution, past literature have shown
that PLSC has been successfully adopted in various countries across industries. Redesign of mind-set and role from
self-interest to common interest and from intermediaries to entrepreneurs are needed for the financial sector to
embrace the benefits of PLSC towards achieving economic and societal sustainability. |
format |
Article |
author |
Aisyah Abdul-Rahman, Gholami, Reza |
spellingShingle |
Aisyah Abdul-Rahman, Gholami, Reza Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
author_facet |
Aisyah Abdul-Rahman, Gholami, Reza |
author_sort |
Aisyah Abdul-Rahman, |
title |
Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
title_short |
Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
title_full |
Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
title_fullStr |
Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
title_full_unstemmed |
Islamic finance and COVID-19 recovery: the role Profit-Loss Sharing Contract |
title_sort |
islamic finance and covid-19 recovery: the role profit-loss sharing contract |
publisher |
Penerbit Universiti Kebangsaan Malaysia |
publishDate |
2020 |
url |
http://journalarticle.ukm.my/16766/1/43171-139603-1-PB.pdf http://journalarticle.ukm.my/16766/ https://ejournal.ukm.my/pengurusan/issue/view/1328 |
_version_ |
1703961586679414784 |
score |
13.160551 |