HOW IS THE REAL SECTOR INDEX USED FOR PRICING?

Abstract

Abstract: How is the Real Sector Index Used for Pricing? This research tries to identify the key elements in the implementation of the real sector index for Islamic banking. The method used is the analytic network process (ANP). This research finds that however, the price is a micro issue so that banks should not only use a macro approach. Banks need to build micro metadata on each of their customers' business sectors. The priority data that must be used are the financial statements of companies listed on the stock exchange. The level of cash generated method becomes the priority formula to guide the price of each business financing.

Keywords

• pricing
• real sector index
• the level of cash generated