Analysis On Islamic Banking Financing Difficulties For Smes Using Musharakah And Mudaraba Financing Instruments

Abstract

The aim of this study is to identify and analyze the role of Musharakah and Mudaraba instruments using by Islamic banking in the limitation of SMEs finance gape, and what are the main difficulties face using these instruments, in this study we used the analytical and descriptive approach, on the form that enabled us to identify the reality and size of the obstacles that prevent the activation of Musharaka and Mudaraba instruments in SMEs financing by Islamic Banks. As a result, we find that asymmetric information problem which distinguish the relationship between the Islamic bank and SMEs, is the main obstacle that limit the use of these instruments

Keywords

• islamic banks
• smes
• musharakah
• mudaraba
• asymmetric information