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Case Sharia Banking (chapt 11)
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Case of Sharia Banking about Musharaka & Mudharaba
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QUIZ SESSION 111. Explain the meaning of Musharkah financing, and give an example of Musharaka
financing
Musharakah is a type of financing where it based on a cooperation agreement between two or
more parties for a certain business. Each party contributes funds on the condition that the
benefits and risks will be shared according to the agreement. This kind of contract usually
used for purchasing property and real estate, in providing credit, for investment projects, and
to finance large purchasing. The relationship between two parties are usually partnership in
financing and/or join venture.
For example, Dela wants to started a business but she has limited funds. Rena has excess
funds and wishes to be the financier in musharakah with Dela. The two people would come to
an agreement to the terms and begin a business in which both share a portion of the profits
and losses. This negates the need for Dela to receive a loan from Rena.
2. What difference Mudharabah financing with Musharakah financing
Mudharabah is a partnership in profit in which one partner provides capital (rab al-mal) and
the other provides labor and business expertise (mudarib).
Meanwhile Musharakah is an agreement between two or more partners to combine their
assets, services, obligations or liabilities for the purpose of making profit.
3. Explain benefits the customer will be receive from Musharakah financing
It is flexible for customers who used Musharakah as their financing contract. The investment
can be in the form of cash or non-cash. Income can be shared proportionally according to
paid-up funds or in accordance with the ratio. Even though it is in the event of deficit/loss,
the contract made an obligation to one to share the deficit/loss proportionally with the
partner, according to paid-up capital.
4. Describe benefits the bank will be receive from Musharakah financing
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