Diminishing Partnership in Islamic Banks A Critical Analytical Study

Abstract

Diminishing partnership in Islamic banks in terms of financing, investment and Islamic products is an alternative to the traditional interest loans. It aims to provide capital for both medium- and long-term projects in various fields of economic activities. However, despite their recent spread  There are legal issues  as it is illegal   and differ   from the actual participation based on profit and loss between the parties. Therefore, this study focuses on the fact of Diminishing participation in Islamic banks, in terms of concept, rules and steps, and then their legal adjustment with reference to Islamic prejudice. then turn to talk about contemporary applications and then refer to the technical aspects related to the risks and the procedures of auditing and legal compliance of the diminishing participation. The study concluded that the decreasing participation is an innovative treatment, which is an award in the Shari'ah controls that the modern Ijtihad in Islamic finance has made. Otherwise, the objective was to lend interest.