Customers’ attitude towards diminishing partnership home financing in Islamic banking

Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This stu...

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Main Authors: Abdul Razak, Dzuljastri, Abduh, Muhamad
Format: Article
Language:English
English
Published: Science Publications 2012
Subjects:
Online Access:http://irep.iium.edu.my/23697/
http://irep.iium.edu.my/23697/1/23697_Customers%E2%80%99%20attitude%20towards%20diminishing.pdf
http://irep.iium.edu.my/23697/2/23697_Customers%E2%80%99%20attitude%20towards%20diminishing_SCOPUS.pdf
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author Abdul Razak, Dzuljastri
Abduh, Muhamad
author_facet Abdul Razak, Dzuljastri
Abduh, Muhamad
author_sort Abdul Razak, Dzuljastri
building IIUM Repository
collection Online Access
description Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This study aims to examine customers’ attitude upon diminishing partnership home financing and their intention to subscribe into the financing scheme. Approach: This study gauges customers’ perception on the salient features of diminishing partnership home financing from Islamic banks through a survey of 504 respondents comprise officers, managers and academician in Kuala Lumpur. The structural equation modeling was utilized to find out factors that influence customers’ intention for diminishing partnership home financing under the framework of the theory of reasoned action. Results: The main finding indicates that customers perceived the equity sharing features in diminishing partnership home financing mode differ from the conventional loan and other existing Islamic home financing modes. The result from structural equation modeling shows that customers’ intention for diminishing partnership is more influenced by their subjective norms compared to their attitude toward diminishing partnership home financing. Conclusion: The customers have perceived diminishing partnership as more shariah compliant than bay bi’thaman ajil. Afterwards, opinions from people perceived important by customers are giving more influence towards their decision making process.
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spelling iium-236972020-11-16T03:27:26Z http://irep.iium.edu.my/23697/ Customers’ attitude towards diminishing partnership home financing in Islamic banking Abdul Razak, Dzuljastri Abduh, Muhamad BP173.75 Islam and economics HF5410 Marketing. Distribution of products HG1501 Banking Problem statement: Diminishing partnership or musharakah mutanaqisah contract in home financing is recently introduced by the Islamic banking industry as an alternative of the bay bi’thaman ajil contract which has received many criticism from shariah scholars as mimicking conventional loan. This study aims to examine customers’ attitude upon diminishing partnership home financing and their intention to subscribe into the financing scheme. Approach: This study gauges customers’ perception on the salient features of diminishing partnership home financing from Islamic banks through a survey of 504 respondents comprise officers, managers and academician in Kuala Lumpur. The structural equation modeling was utilized to find out factors that influence customers’ intention for diminishing partnership home financing under the framework of the theory of reasoned action. Results: The main finding indicates that customers perceived the equity sharing features in diminishing partnership home financing mode differ from the conventional loan and other existing Islamic home financing modes. The result from structural equation modeling shows that customers’ intention for diminishing partnership is more influenced by their subjective norms compared to their attitude toward diminishing partnership home financing. Conclusion: The customers have perceived diminishing partnership as more shariah compliant than bay bi’thaman ajil. Afterwards, opinions from people perceived important by customers are giving more influence towards their decision making process. Science Publications 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/23697/1/23697_Customers%E2%80%99%20attitude%20towards%20diminishing.pdf application/pdf en http://irep.iium.edu.my/23697/2/23697_Customers%E2%80%99%20attitude%20towards%20diminishing_SCOPUS.pdf Abdul Razak, Dzuljastri and Abduh, Muhamad (2012) Customers’ attitude towards diminishing partnership home financing in Islamic banking. American Journal of Applied Sciences, 9 (4). pp. 593-599. ISSN 1546-9239 E-ISSN 1554-3641 http://www.thescipub.com/pdf/ajassp.2012.593.599.pdf 10.3844/ajassp.2012.593.599
spellingShingle BP173.75 Islam and economics
HF5410 Marketing. Distribution of products
HG1501 Banking
Abdul Razak, Dzuljastri
Abduh, Muhamad
Customers’ attitude towards diminishing partnership home financing in Islamic banking
title Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_full Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_fullStr Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_full_unstemmed Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_short Customers’ attitude towards diminishing partnership home financing in Islamic banking
title_sort customers’ attitude towards diminishing partnership home financing in islamic banking
topic BP173.75 Islam and economics
HF5410 Marketing. Distribution of products
HG1501 Banking
url http://irep.iium.edu.my/23697/
http://irep.iium.edu.my/23697/
http://irep.iium.edu.my/23697/
http://irep.iium.edu.my/23697/1/23697_Customers%E2%80%99%20attitude%20towards%20diminishing.pdf
http://irep.iium.edu.my/23697/2/23697_Customers%E2%80%99%20attitude%20towards%20diminishing_SCOPUS.pdf