House Financing of Islamic Banks under Diminishing Mush┐rakah: An Analysis of Islamic Banks’ Related Provisions

Abstract

Home is considered a basic requirement of human being and its shortage is a major problem worldwide especially in less developed countries. Islamic banks offer Diminishing Mush┐rakah /Decreasing Partnership product for house financing, which contain contract of partnership, ├j┐r┐ , and a sale purchase transaction. The paper will discuss the home financing product as it is implemented in Islamic banking industry; it will also examine issues in