The Willingness of the Musharakah Mutanaqisah Partnership in Bearing the Loss – An Actuarial Approach to Evaluate the Bank’s Investment Income by
Shamsul Rijal Muhammad Sabri
School of Mathematical Sciences, Universiti Sains Malaysia, 11800 USM, Pulau Pinang, Malaysia
Abstract—This paper suggested a development of the rate of failure of abandoned housing project that can be incorporated by the bank in implementing the Musharakah Mutanaqisah Partnership (MMP) replacing the current controversial housing financing namely, Bay’ Bithaman Ajil (BBA) facility. The paper found out that, the higher the rate of failure due to the abandoned housing project, the less the bank in earning the profit. This would be reflected by the size of debtors committing into this facility and the tenure.
Index Terms—musharakah mutanaqisah partnership; actuarial method; bank’s yearly investment income; abandoned housing project
Cite: Shamsul Rijal Muhammad Sabri, "The Willingness of the Musharakah Mutanaqisah Partnership in Bearing the Loss – An Actuarial Approach to Evaluate the Bank’s Investment Income by the Case of Abandoned Housing Project," Journal of Emerging Technologies in Web Intelligence, Vol. 5, No. 2, pp. 117-121, May 2013. doi:10.4304/jetwi.5.2.117-121
Index Terms—musharakah mutanaqisah partnership; actuarial method; bank’s yearly investment income; abandoned housing project
Cite: Shamsul Rijal Muhammad Sabri, "The Willingness of the Musharakah Mutanaqisah Partnership in Bearing the Loss – An Actuarial Approach to Evaluate the Bank’s Investment Income by the Case of Abandoned Housing Project," Journal of Emerging Technologies in Web Intelligence, Vol. 5, No. 2, pp. 117-121, May 2013. doi:10.4304/jetwi.5.2.117-121
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