03.05.2010 - Shariah finance doesn’t need more equity on assets
From Gulf-times.com: To promote equity instruments such as mudaraba and musharaka as ‘ideal’ modes of financing in Islamic finance seems to ignore the lessons of Transactions Cost Economics that equity requires costly monitoring. Moreover, in current applications and fiqh interpretations of mudaraba, the investor (rabb ul mall) does not have the monitoring or governance rights that would be appropriate for an equity investor. ............................................Full Article: Source
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