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The Paradox of Idealization in Theory and Marginalization in the Practice

In: Participatory Islamic Finance

Author

Listed:
  • Muhammad Nouman

    (University of Agriculture)

  • Karim Ullah

    (Institute of Management Sciences)

Abstract

Participatory financingParticipatory finance dominates Islamic banking literatureIslamic banking literature. The participationParticipation model calls for a banking systemBanking system which is akin to equityEquity-based model whereby depositor in essence has equityEquity position in the banksBank. The banksBank, in turn, purchase equityEquity position in the venturesVenture(s) being financed. This system is acclaimed to have several advantages over the non-participatoryNon-participatory Islamic banking modelsIslamic banking models and the conventional interest-based banking systemConventional interest based banking system.

Suggested Citation

  • Muhammad Nouman & Karim Ullah, 2023. "The Paradox of Idealization in Theory and Marginalization in the Practice," Springer Books, in: Participatory Islamic Finance, chapter 0, pages 63-81, Springer.
  • Handle: RePEc:spr:sprchp:978-981-19-9555-2_4
    DOI: 10.1007/978-981-19-9555-2_4
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