Lack of Profit Loss Sharing in Islamic Banking:Management and Control Imbalances

By Humayon A. Dar, J. Presley. 2000

379 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/6087e62b157b46887779cf03bd94856652cb06d6

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Citations in the corpus

Islamic Banking: Interest-Free or Interest-Based? (2009, background): “Most theoretical models of Islamic banking are based on the mudarabah (profit-sharing) and/or musyarakah (joint venture) concepts of PLS (Dar and Presley, 2000).”
EFFICIENCY IN ISLAMIC BANKING: AN EMPIRICAL ANALYSIS OF EIGHTEEN BANKS (2004, background): “…efficiency remains the contentious issues as discussed extensively in Humprey (1985), the reason for choosing the intermediation approach is because of the main character of Islamic banks, which is often claimed as a joint stock firms which shares are easily tradable (Dar and Presley 2000).”
Competitive conditions in Islamic and conventional banking: A global perspective (2010, background): “…banks’ balance sheets show that credit-based financing (murabaha or cost-plus sales) is the dominant form of uses for funds, while profit-and-loss (or risk-sharing) financing in the form of mudaraba and musharaka financing represent on average less than 10% of assets (Dar and Presley, 2000).”
Of Religion and Redemption: Evidence from Default on Islamic Loans (2014, unknown): “See also Bashir, Darrat and Suliman (1993) and Dar and Presley (2000), among others. The low share of PLS lending contracts is not specific to Pakistan. Chong and Liu (2009), for instance, find that only 0.”
Risk in Islamic Banking (2012, background): “Nevertheless, in the likelihood of crisis, management is highly likely to share realized losses with investment account holders to avoid insolvency.”
Clients of conventional and Islamic banks in Bahrain: How they choose which bank to patronize (2009, background): “The imbalance between management and control rights (the agency problem) is blamed for this major failure to rely on PLS in the practice of Islamic finance ( Dar and Presley, 2000”
Critical insights into contemporary Islamic accounting (2009, background): “Almost all Islamic banking operations are based on mark-up (combining the features of deferred payment sale and a mark-up on price) rather than PLS (Dar and Presely, 2000).”
The efficiency of Islamic banking industry in Malaysia: Foreign vs domestic banks (2007, background): “) and the importance of PLS in Islamic banking ( Dar and Presley, 2000”