Proceedings of 1st International Conference of Law and Justice - Good Governance and Human Rights in Muslim Countries: Experiences and Challenges (ICLJ 2017)

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Economic Review and Regulation of Islamic Investment Instruments on Asset-Backed Securities

Authors
Nurhasanah
Corresponding Author
Nurhasanah
Available Online November 2017.
DOI
10.2991/iclj-17.2018.33How to use a DOI?
Keywords
Securitization; Asset-backed Securities; Islamic Bank; and Mortgage Financing
Abstract

Potential credits for having houses through Islamic financial services show an increasing opportunity for Islamic bank to channel their funds through mortgage financing. In reality, however, the bank's capital still fails to fulfill these growing demands in such market. In response to this case, Islamic banks need to develop a model of long-term financing through Islamic capital market products. This paper highlights these challenges of developing Islamic asset-backed securities instruments in the form of Letter of participation particularly concerning with economic and regulatory factors. Islamic asset-backed securities in the form of a letter of Participation are one of the Islamic capital market instruments to be published with Financial Multigriya means of PT (Persero). Its operations have also been set up in the policy of the financial services authority in the form of Sharia capital market Road Map 2015 – 2019 accompanied with regulation of the financial services authority Number 20/POJK. 04/2015, and the Fatwa of the National Assembly of the Islamic Scholars Council of Indonesia No. 40/DSN-MUI/X/2003. There is a gap, however, between the opportunities and development prospects of Islamic asset-backed securities in the form of a letter of participation looks quite encouraging and its realization.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of 1st International Conference of Law and Justice - Good Governance and Human Rights in Muslim Countries: Experiences and Challenges (ICLJ 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
November 2017
ISBN
978-94-6252-469-9
ISSN
2352-5398
DOI
10.2991/iclj-17.2018.33How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Nurhasanah
PY  - 2017/11
DA  - 2017/11
TI  - Economic Review and Regulation of Islamic Investment Instruments on Asset-Backed Securities
BT  - Proceedings of 1st International Conference of Law and Justice - Good Governance and Human Rights in Muslim Countries: Experiences and Challenges (ICLJ 2017)
PB  - Atlantis Press
SP  - 159
EP  - 164
SN  - 2352-5398
UR  - https://doi.org/10.2991/iclj-17.2018.33
DO  - 10.2991/iclj-17.2018.33
ID  - 2017/11
ER  -