A comparative study of musharakah mutanaqisah in Islamic home financing

• Main Author: Mohd Shahid Azim, Mohd Saufi
• Format: Thesis
• Language: English; English
• Published: 2014
• Subjects: BP Islam. Bahaism. Theosophy, etc; HG Finance
• Online Access: https://etd.uum.edu.my/4567/1/s813596.pdf; https://etd.uum.edu.my/4567/2/s813596_abstract.pdf; https://etd.uum.edu.my/4567/

Musyarakah mutanaqisah is a hybrid contract containing three shariah contract namely Ijarah, al bay’, Musyarakah. This research discusses the implementation of musyarakah mutanaqisah in Islamic home financing by RHB Islamic Bank Berhad and Kuwait Finance House (Malaysia) Berhad (KFHMB). This study also analyzes the parameters used for musyarakah mutanaqisah and sees whether RHB Islamic Bank and Kuwait Finance House (Malaysia) Bank (KFHMB) use these parameters on their product in musyarakah mutanaqisah. The researcher also wants to analyze the parameter for musyarakah mutanaqisah. Besides that, the selection of two banks is meant to compare their Standard Operating Procedure (SOP) in the implementation of musyarakah mutanaqisah in RHB Islamic Bank Berhad and KFHMB. The researcher also analyzes the issues and challenges faced by both of the banks in implementing this product because musyarakah mutanaqisah product is considered as a new product in Islamic home financing and has started getting noticed by Islamic banking in this country. In order to achieve the objective of the research, the researcher uses the library and field works as a method to collect the data. The data collected are analyzed, using the method of content, inductive and comparative. To obtain the information for getting answers to all the research questions, the researcher has conducted interviews with executive officers from both of the banks and the experts in this field. In the end, the researcher makes a few suggestions and recommendations to the banks, government, academicians and society with the aim to improve and get acceptance of this product in future.