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A critique of the diminishing balance method of islamic home financing - response

Hasan, Zubair (2013): A critique of the diminishing balance method of islamic home financing - response.

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Abstract

This paper responds to the criticism of the Zubair Diminishing Balance model for Islamic home financing that Ahmad Kameel Meera published in the ISRA Journal. The response argues that most of the comments of Meera are frivolous and misplaced. It reiterates that the ZDBM is much different from other models; it is cheaper for the customer without being costlier to the bank, more efficient in resource allocation and improves liquidity in the financial system. However, the mathematical appendix is a positive contribution of Meera's paper.

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