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Profit sharing ratios in mudaraba contract revisited

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  • Hasan, Zubair

Abstract

The paper discusses three interconnected issues: Is the profit sharing between the Islamic banks and the depositors fair, can the profit sharing ratio between the banks and the borrowers on the one hand and between the banks and depositors on the other be identical in a two-tier mudaraba arrangement, and can the Central Bank of a country use the sharing of profit ratio as a tool for credit control in the economy?

Suggested Citation

  • Hasan, Zubair, 2009. "Profit sharing ratios in mudaraba contract revisited," MPRA Paper 21843, University Library of Munich, Germany, revised 2010.
    • Handle: RePEc:pra:mprapa:21843
    as

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    File URL: https://mpra.ub.uni-muenchen.de/21843/1/MPRA_paper_21843.pdf
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    References listed on IDEAS

    as
    1. Mohsin S. Khan & Abbas Mirakhor, 1989. "The Financial System and Monetary Policy in an Islamic Economy النظام المالي والسياسة النقدية في اقتصاد إسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(1), pages 39-57, January.
    2. Hasan, Zubair, 1985. "Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance," MPRA Paper 3013, University Library of Munich, Germany.
    3. Zubair Hasan, 1985. "Determination of Profit and Loss Sharing Ratios in Interest-free Business Finance العوامل المحدِّدة لنسب المشاركة في الربح والخسارة," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 3(1), pages 13-29, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hassan Belkacem Ghassan & Abdelkrim Ahmed Guendouz, 2019. "Panel modeling of z-score: evidence from Islamic and conventional Saudi banks," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 448-468, July.
    2. Zubair Hasan, 2016. "PLS Finance and Monetary Policy: A New Measure Mooted," Journal of Reviews on Global Economics, Lifescience Global, vol. 5, pages 288-297.
    3. Hasan, Zubair, 2011. "Money creation and control from Islamic perspective," MPRA Paper 28366, University Library of Munich, Germany.
    4. Mohammad Nur Rianto Al Arif, 2011. "The effects of macroeconomic variables on profit-sharing yield pricing," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(3), pages 235-244, April.
    5. Hasan, Zubair Hasan, 2014. "The recent turmoil and monetary policy in a dual financial system with Islamic perspective," MPRA Paper 57133, University Library of Munich, Germany.
    6. Hasan, Zubair, 2016. "Credit control instruments in a dual banking system: leverage control rate (LCR) – a proposal," MPRA Paper 65027, University Library of Munich, Germany, revised 18 Feb 2016.

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    More about this item

    Keywords

    Mudarabah; Islamic banks; profit sharing ratio; credit control;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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