Are profit sharing rates of mudharabah account linked to interest rates? an investigation on Islamic banks in GCC countries

• Main Authors: Rosylin Mohd. Yusof, Bahlous, Mejda, Tursunov, Hamza
• Format: Article
• Language: English
• Published: Penerbit Universiti Kebangsaan Malaysia 2015
• Online Access: http://journalarticle.ukm.my/9593/1/jeko_49%282%29-7.pdf; http://journalarticle.ukm.my/9593/; http://www.ukm.my/fep/jem/current.html
• Institution: Universiti Kebangsaan Malaysia

In principle, Islamic banking prohibits interest and advocates profit and loss sharing in its operations. Critics argue that in practice, Islamic banking is not totally interest free; but it focuses more on non-profit and loss sharing mechanisms instead. This study attempts to investigate the issu...