Musharakah Mutanaqisah Home Financing
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Musharakah mutanaqisah home financing. This paper aims to examine the practical issues in the musharakah mutanaqisah mm financing and subsequently recommends possible solutions to mitigate these issues and improve the current practice this paper analyses the theory and current practices of mm offered by islamic banks it is suggested that islamic financial institutions consider revaluation of property s value to its fair. Musharakah is a joint enterprise or partnership structure in islamic finance in which partners share in the profits and losses of an enterprise. The following is the conclusion of the paper. Pdf on jan 1 2016 alam asadov and others published musharakah mutanaqisah home financing.
Musharakah mutanaqisah mm home financing for affordability of homeownership. Musharakah mutanaqisah in the malaysian context is not an equity partnership arrangement although some banks would like to think so. Musharakah mutanaqisah is an islamic equity financing instrument. A musharaka structure where the equity is concerned carries valuation risks where the equity is not principally guaranteed.
In a musharaka if there is a valuation loss the bank and the customers share the.