Contract agreement model for murabahah financing in Indonesia Islamic banking

Wulandari, Permata and , Niken Iwani Surya Putri and Kassim, Salina and Sulung, Liyu Adikasari (2016) Contract agreement model for murabahah financing in Indonesia Islamic banking. International Journal of Islamic and Middle Eastern Finance, 9 (2). pp. 190-204. E-ISSN 1753-8394

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Abstract

The purpose of this paper is to measure the pattern of contract agreement process to map various banks’ position in perceiving Sharia conduct. This is done by incorporating the dynamics of culture, market demand and Sharia literacy in different banks. Finding of this research will serve as the formula to map the latent degree of Islamic bank’s commitment to their strategic vision and identity as an Islamic-based financial institution. This research develops its theoretical background in classical and contemporary literature review on murabahah contract in Islamic perspective. Focus group discussion (FGD) and in-depth interview are conducted on 32 bankers (in 14 Islamic banks), two National Sharia Council, five academicians and three central bank representatives as an input for qualitative analysis. Content analysis is utilized in this paper to emphasize the process of discovering the relationship between dynamic factors affecting contract agreement process in murabahah scheme in Indonesian banking. There are four dimensions affecting the contract agreement: fairness to customer,country regulation, perceived business practicality and product characteristic. The four dimensions are assumed to be influenced with categories proposed, as the category item is mostly repeated and is perceived to be significant in the participant’s perspective.

Item Type:	Article (Journal)
Additional Information:	4600/51963
Uncontrolled Keywords:	Indonesia, Islamic banking, Qualitative analysis, Contract agreement, Murabaha financing
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HC Economic History and Conditions > HC79 Special topics. Including air pollution, consumer demands,famines, flow of fund etc H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	20 Sep 2016 16:35
Last Modified:	17 Mar 2017 10:24
URI:	http://irep.iium.edu.my/id/eprint/51963

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