House financing: contracts used by Islamic banks for finished properties in Malaysia

Abstract

The purpose of this paper is to find out the existing practices of the Islamic banks in providing financing to the customers who have a requirement to purchase a finished property and to examine the existing products used by the Islamic banks in this regard by providing an insight into the modus operandi of these products. In doing this, attempt is made to find out the most famous product offered by the Islamic banks in this regard and to find out whether in reality, Malaysian Islamic banking industry has moved away from Bai Bithaman Ajil (BBA) or not. This is a qualitative research, largely library-based, and it will consist of secondary sources such as books, journals, articles and other sources related to the Islamic house financing in Malaysia for finished properties. Recent information of the practises of the banks in this regard is obtained from the official websites of the banks.

Keywords

Murabahah, Musharakah mutanaqisah, Bai bithaman ajil, Islamic house financing

Citation

Muneeza, Aishath and Fauzi, Muhammad Fahmi and Mat Nor, Muhammad Faisal and Abideen, Mohamed and Ajroudi, Muhammed Maher. (2020). House financing: contracts used by Islamic banks for finished properties in Malaysia. Journal of Islamic Accounting and Business Research, 11 (1), pp. 168-178.

Publisher

Emerald

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