IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/20683.html
   My bibliography  Save this paper

Alternative Pricing Mechanisms for Islamic Financial Instruments: Economic Perspective

Author

Listed:
  • Saba, Irum
  • Alsayyed, Nidal

Abstract

The Islamic banking industry has been trying for the last two decades to extend its outreach to expand its operation business and services in a comparable zone to conventional banking. This paper discusses one of the important hurdles in the growth of Islamic banking which is the use of KIBOR as benchmark for pricing the Islamic banking products. Muskun home financing product of BankIslami Pakistan Limited is used in this paper to elaborate the pricing and benchmarking of product, spread between the conventional interest rate and Islamic profit rate as well as the alternative product pricing mechanism to be used by Islamic banks for this product. Details of Muskun home financing product are discussed in this paper in addition to the marketing strategy, market approach, product development, and all other relevant processes.

Suggested Citation

  • Saba, Irum & Alsayyed, Nidal, 2010. "Alternative Pricing Mechanisms for Islamic Financial Instruments: Economic Perspective," MPRA Paper 20683, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:20683
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/20683/1/MPRA_paper_20683.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alsayyed, Nidal, 2010. "Sukukization: Islamic Economic Risk Factors in Shari’ah View," MPRA Paper 20489, University Library of Munich, Germany, revised 15 Feb 2010.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saba, Irum & Alsayyed, Nidal, 2010. "Economic Pricing Mechanisms for Islamic Financial Instruments: Ijarah Model," MPRA Paper 20685, University Library of Munich, Germany.

    More about this item

    Keywords

    Islamic Economics; KIBOR; Benchmarking; Pricing; Riba based system; Confidence;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • A10 - General Economics and Teaching - - General Economics - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.