TAILIEUCHUNG - Estimation of Murabaha margin

In the Last decade, the Islamic Finance market has grown significantly, and attracted several investors. However, the profitability of Islamic financial products remains one of the main concerns of portfolio managers as well as investors. Among the products that are mostly offered by the Islamic banks is the Murabaha in which return can not only be known but also guaranteed owing to the low efforts and costs invested. Indeed, the profit margin has a great importance in the elaboration of the Murabaha contract, and stands out as one of the main components of profitability from a commercial viewpoint. In this article, we propose a new approach to estimate the profit margin of Murabaha using the stochastic process and portfolio techniques. The aim is to determine an interval allowing Islamic banks to anticipate and check their profit margin in order to ensure the profitability of the Murabaha investment. This research comes up with a model which describes the profit margin of the Murabaha investment with meaningful benchmarks that inform the bank on the eventual ROI (Return on Investment). | Journal of Applied Finance Banking vol. 7 no. 5 2017 49-61 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2017 Estimation of Murabaha Margin K. Chelhi1 M. El Hachloufi2 M. Aboulethar3 A. Eddaoui4 and A. Marzak5 Abstract In the Last decade the Islamic Finance market has grown significantly and attracted several investors. However the profitability of Islamic financial products remains one of the main concerns of portfolio managers as well as investors. Among the products that are mostly offered by the Islamic banks is the Murabaha in which return can not only be known but also guaranteed owing to the low efforts and costs invested. Indeed the profit margin has a great importance in the elaboration of the Murabaha contract and stands out as one of the main components of profitability from a commercial viewpoint. In this article we propose a new approach to estimate the profit margin of Murabaha using the stochastic process and portfolio techniques. The aim is to determine an interval allowing Islamic banks to anticipate and check their profit margin in order to ensure the profitability of the Murabaha investment. This research comes up with a model which describes the profit margin of the Murabaha investment with meaningful benchmarks that inform the bank on the eventual ROI Return on Investment . JEL classification numbers E22 Keywords Islamic banks Murabaha Portfolio Profit margin of Murabaha Stochastic process 1 Introduction Islamic finance has rapidly gained worldwide renown. The number of Islamic financial institutions has increased considerably around the world. The Moroccan authorities have recently reached an important stage in the process of adopting Islamic finance through issuing a law defining the framework regulations and arrangements that outline and frame the activities of Islamic banks in Morocco. However financial risk remains a major concern 1Faculty of Sciences Ben M Sik - University Hassan II. 2Faculty of Law Economics Ain Sebaâ - .

• Tài chính doanh nghiệp
• Islamic banks
• Profit margin
• Stochastic process
• Estimation of Murabaha margin
• Meaningful benchmarks
• Capital adequacy ratio
• Egyptian banks
• Islamic windows pre
• Global financial crisis
• Conventional banking
• Islamic banking
• Financial ratio’s AAG rate
• Performance of islamic banks
• Conventional banks in GCC region
• Traditional banks
• Financial crisis
• Traditional banks performed
• Listed islamic
• Scale efficiency
• Data envelopment analysis
• Mena Islamic banks
• Bank characteristics
• Nonbank deposit
• Parametric test
• Islamic bank
• Conventional banks
• Deposits shock resistant
• Challenges and opportunities of expansion of islamic banks in ethiopia
• Commercial bank of ethiopian dire dawa interest free branch
• Ethiopian dire dawa interest free branch
• Conventional banks and Interest free banking
• Obtaining sufficient data
• Financial performance
• Financial analysis
• United arab emirates
• Financial performance of Islamic banks
• Middle eastern
• Forty seven banks
• Islamic Banks in Palestine
• Customer satisfaction and customer loyalty
• Structural equation modeling
• Role of PAKSERV model
• Banking industry of Palestine
• Corporate governance
• Corporate governance mechanisms
• Board of directors
• Audit committee
• Executive committee
• Uae conventional and islamic banks
• Islamic finance
• Sharia compliance
• Construction of certain structure
• Net operating margin
• Islamic commercial banks
• Endogenous switching regression
• Income diversification
• Asset diversification
• Report on scientific research
• Automated Services Banks
• Quality ATM Banhks
• Quality Internet banking
• Services Telephone banking
• Confirmatory Factor Analysis
• Interest spread
• Interest rate margin banking concentration
• Banking performance
• Geometric mean or average
• Islamic sharea
• Servant leadership and its impact on organizational citizenship behavior
• The mediating role of job satisfaction
• The Jordanian Islamic Banks
• Random sample technique
• Organizational citizenship behavior