
This paper mathematically analyzes the two-tier Mudarabah model in an exclusive Islamic financial environment and under dual banking system.
This paper mathematically analyzes the two-tier Mudarabah model in an exclusive Islamic financial environment and under dual banking system.
This paper aims to see which modes of financing are majorly employed by Islamic banks while providing finance to the clients. The empirical analysis shows that by and large Islamic banks use risk-shifting contracts. The use of risk-sharing based contracts is quite minimal.
Agency conflict arises when the various parties have different incentives or objectives in a mutual relationship. This article discusses Islamic economics perspective on the agency conflicts.