Hasan, Zubair (2011): Islamic house financing:current models and a proposal from social perspective.
Download (575kB) | Preview
Shelter is one of the basic needs for human beings. Its availability for the people is an Islamic imperative. In view of the appalling living conditions for a substantial proportion of population in most countries around the world, especially Muslim, Islamic banks have entered the field with varying schemes for house financing. In this infant industry, the effort is understandably guided by profit motive but a social dimension has to surface in course of time. Unfortunately, the models banks currently use for house financing remains under the juridical gaze, more so as the practice is not always found transparent. This paper looks at Islamic house financing models in a broader societal context. It evaluates the efficacy of the in practice financing structures and suggests a new approach. The proposed model is shown as superior to the existing ones. It meets the norms of equity, fair play and openness and does not presumably violate any other Islamic norm. Finally, the paper makes some policy suggestions to integrate Islamic house financing with broader social goals of an Islamic economy.
|Item Type:||MPRA Paper|
|Original Title:||Islamic house financing:current models and a proposal from social perspective|
|English Title:||Islamic house financing:current models and a proposal from social perspective|
|Keywords:||Key words: Housing problem; basic needs, Conventional model, BBA in housing, the MMP model, Diminishing balances model; Constructive ownership; National planning|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D60 - General
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Zubair Hasan|
|Date Deposited:||07. Jan 2011 20:47|
|Last Modified:||13. Feb 2013 14:31|
Amott, Richard (2008): Housing policy in developing countries: The importance of informal economy, The World Bank: Commission on Growth and Development, Working paper series, No.13, pp.1-32.
Brown, Valerie J. (2003): Give me shelter: the global housing crisis – focus: Environmental health perspective – Comments, Health publications http://findarticles.com/p/articles/mi_mOCYP/is_2_111/ai_99185877/ downloaded 12/6/2010.
Global Islamic Finance Forum (2010): Islamic finance opportunities: country and business guide, KFH Research Ltd. Kuala Lumpur.
Hasan, Zubair (1997): Fulfillment of Basic Needs: Concept, Measurement and Muslim Countries’ Performance, IIUM Journal of Economics and Management, Vol. 5 No. 2 pp. 1-38.
Husain, A (2010): Islamic home financing and mortgages, monograph, Islamic monograph co. Ltd. pp.1-7 Downloaded 12/2/2010 from http://www.islamicmicromortgages.co.uk/index.php?id=277
Malaysian Reserve, Kuala Lumpur 13-10-2007 and 13-10-2008.
Malpezzi, Stephen & Mayo, Stephen K, (July, 1987): The Demand for Housing in Developing Countries: Empirical Estimates from Household Data, Economic Development and Cultural Change, University of Chicago Press, vol. 35(4), pages 687-721.
Meera, A. K. M & Razak, D. A (2009): Home financing through the musharakah mutanaqisah contracts: some practical issues, JKAU: Islamic Economics, Vol. 22, No.1, pp. 3-25.
Muhammad, Marjan (2010): The implementation of Ibra in Islamic banking and finance: An analysis in terms of banking operations and maqasid-al-Shari’ah, ISRA: International Journal of Islamic Finance, Vol. 2, Issue 1, pp.159-162 (Research notes).
Nnanna U.J. (2010): Housing crises: A theoretical study of the home building industry in Nigeria, International Business Research, Vol. 3 No. 1, pp.16-19., www.ccsenet.org
Rosly, Saiful Azhar, (Third print 2010): Critical issues on Islamic banking and financial markets, Dinamas Publishing, Kuala lumpur.
Usmani, Maulana Taqi (2010): Musharaka and mudaraba as modes of financing, Journal of Islamic Banking and Finance, Karachi Vol. 27, No. 3 pp. 57-76.