Publication:
Determinants of profit rates in true sale-based Islamic financing: a case study of Malaysia
Abstract
The fundamental principle of true sale is based on the ownership state of the subject matter of sale where the selling party must own the asset legally and keep full ownership of the goods before making the sale. In the riba-free system, the Islamic bank assumes a role of a trading entity. It undertakes a trading position and exposes itself to business risk as the asset is booked on its balance sheet. It follows that the profit rate it charges the customer will reflect an additional risk-premium to account for the business risk exposure ...
Keywords
True sale-based financing , Ownership risk , Profit rate , Islamic banking , Structural Equation Modelling (SEM)
Citation
Mohd Sapian, S. (2016). Determinants of profit rates in true sale-based Islamic financing: a case study of Malaysia (Doctoral dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/2403
Publisher
INCEIF
Available in physical copy and downloadable format (Call Number: t HG 3368 A6 S128)