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Qualitative validation of a financially affordable Islamic home financing model

Purpose – This study aims to validate a potential synergistic venture between cash waqf (Islamic endowment) institutions (CWIs) and financial cooperatives (FCs) in the provision of affordable Islamic home financing (IHF) in Malaysia. Design/methodology/approach – The study adopted semi-structured...

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Main Authors: Md Zabri, Mohd Zaidi, Mohammed, Mustafa Omar
Format: Article
Language:English
English
Published: Emerald Group Publishing Ltd. 2018
Subjects:
HG Finance
HG179 Personal finance
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/69715/1/69715_Qualitative%20validation%20of%20a%20financially%20affordable_article.pdf
http://irep.iium.edu.my/69715/2/69715_Qualitative%20validation%20of%20a%20financially%20affordable_scopus.pdf
http://irep.iium.edu.my/69715/
https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJIF-08-2017-0023
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spelling my.iium.irep.697152019-01-15T06:08:46Z http://irep.iium.edu.my/69715/ Qualitative validation of a financially affordable Islamic home financing model Md Zabri, Mohd Zaidi Mohammed, Mustafa Omar HG Finance HG179 Personal finance HG3368 Islamic Banking and Finance Purpose – This study aims to validate a potential synergistic venture between cash waqf (Islamic endowment) institutions (CWIs) and financial cooperatives (FCs) in the provision of affordable Islamic home financing (IHF) in Malaysia. Design/methodology/approach – The study adopted semi-structured interviews with ten experts to validate the cash waqf-financial-cooperative-mush�arakah mutan�aqi� sah (CWFCMM) model. Thematic analysis technique was used to analyse the verbatim texts. Findings – The findings show that the majority of the informants have positive perceptions of the potential of the CWFCMM model to provide financially affordable IHF products in Malaysia. Nevertheless, this study sheds light on the varying degrees of latent issues and challenges that might arise in the implementation of this model. For example, FCs need to practice the correct business model, implement good governance structures and employ the right people. Meanwhile, CWIs need to work on their accountability issues by publishing their audited accounts in mainstream newspapers, much like what is being done by non-governmental organisations such as the widely recognised Malaysian Medical Relief Society (MERCY Malaysia). Research limitations/implications – This study interviewed a small, industry-specific number of informants in generating its findings. Time and budget constraints are some of the limiting factors in carrying out the study. Because of these factors, the generalisation of the study’s findings will be limited. Practical implications – First, the CWFCMM model offers an alternative, financially affordable IHF instrument to low- and middle-income households in Malaysia. Second, the involvement of third-sector institutions such as FCs and CWIs in the provision of IHF will reduce the burden of the government in its spending on home financing solutions for civil servants. Third, this model will harness the potential of waqf-based financing beyond the contemporary limited applications to mosques, graveyards and ta � hfī � z (Qurʾan memorization) schools. Originality/value – This study presents an alternative IHF model that transcends the current institutional framework that is heavily dominated by Islamic commercial banks and government-owned home financing institutions. The study does not focus on a single third-sector institution but on an integration of at least two of them, CWIs and FCs, in implementing the IHF model. Emerald Group Publishing Ltd. 2018-12-10 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/69715/1/69715_Qualitative%20validation%20of%20a%20financially%20affordable_article.pdf application/pdf en http://irep.iium.edu.my/69715/2/69715_Qualitative%20validation%20of%20a%20financially%20affordable_scopus.pdf Md Zabri, Mohd Zaidi and Mohammed, Mustafa Omar (2018) Qualitative validation of a financially affordable Islamic home financing model. ISRA International Journal of Islamic Finance, 10 (2). pp. 143-161. ISSN 0128-1976 https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJIF-08-2017-0023 10.1108/IJIF-08-2017-0023
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HG Finance
HG179 Personal finance
HG3368 Islamic Banking and Finance
spellingShingle HG Finance
HG179 Personal finance
HG3368 Islamic Banking and Finance
Md Zabri, Mohd Zaidi
Mohammed, Mustafa Omar
Qualitative validation of a financially affordable Islamic home financing model
description Purpose – This study aims to validate a potential synergistic venture between cash waqf (Islamic endowment) institutions (CWIs) and financial cooperatives (FCs) in the provision of affordable Islamic home financing (IHF) in Malaysia. Design/methodology/approach – The study adopted semi-structured interviews with ten experts to validate the cash waqf-financial-cooperative-mush�arakah mutan�aqi� sah (CWFCMM) model. Thematic analysis technique was used to analyse the verbatim texts. Findings – The findings show that the majority of the informants have positive perceptions of the potential of the CWFCMM model to provide financially affordable IHF products in Malaysia. Nevertheless, this study sheds light on the varying degrees of latent issues and challenges that might arise in the implementation of this model. For example, FCs need to practice the correct business model, implement good governance structures and employ the right people. Meanwhile, CWIs need to work on their accountability issues by publishing their audited accounts in mainstream newspapers, much like what is being done by non-governmental organisations such as the widely recognised Malaysian Medical Relief Society (MERCY Malaysia). Research limitations/implications – This study interviewed a small, industry-specific number of informants in generating its findings. Time and budget constraints are some of the limiting factors in carrying out the study. Because of these factors, the generalisation of the study’s findings will be limited. Practical implications – First, the CWFCMM model offers an alternative, financially affordable IHF instrument to low- and middle-income households in Malaysia. Second, the involvement of third-sector institutions such as FCs and CWIs in the provision of IHF will reduce the burden of the government in its spending on home financing solutions for civil servants. Third, this model will harness the potential of waqf-based financing beyond the contemporary limited applications to mosques, graveyards and ta � hfī � z (Qurʾan memorization) schools. Originality/value – This study presents an alternative IHF model that transcends the current institutional framework that is heavily dominated by Islamic commercial banks and government-owned home financing institutions. The study does not focus on a single third-sector institution but on an integration of at least two of them, CWIs and FCs, in implementing the IHF model.
format Article
author Md Zabri, Mohd Zaidi
Mohammed, Mustafa Omar
author_facet Md Zabri, Mohd Zaidi
Mohammed, Mustafa Omar
author_sort Md Zabri, Mohd Zaidi
title Qualitative validation of a financially affordable Islamic home financing model
title_short Qualitative validation of a financially affordable Islamic home financing model
title_full Qualitative validation of a financially affordable Islamic home financing model
title_fullStr Qualitative validation of a financially affordable Islamic home financing model
title_full_unstemmed Qualitative validation of a financially affordable Islamic home financing model
title_sort qualitative validation of a financially affordable islamic home financing model
publisher Emerald Group Publishing Ltd.
publishDate 2018
url http://irep.iium.edu.my/69715/1/69715_Qualitative%20validation%20of%20a%20financially%20affordable_article.pdf
http://irep.iium.edu.my/69715/2/69715_Qualitative%20validation%20of%20a%20financially%20affordable_scopus.pdf
http://irep.iium.edu.my/69715/
https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJIF-08-2017-0023
_version_ 1643618754858319872
score 13.211869

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