文章基本信息

标题：A Stochastic Approach for Determining Profit Rate of Islamic Financing Products
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作者：Zaidi Isa ; Nur Amalina Shafie
期刊名称：International Journal of Economics and Financial Issues
电子版ISSN：2146-4138
出版年度：2017
卷号：7
期号：1
页码：154-163
语种：English
出版社：EconJournals
摘要：Islamic Bank in Malaysia uses Bai’ Bithaman Ajil (BBA) method and Musharakah Mutanaqisah Partnership (MMP) method for the home financing process. However, these house price calculation methods are still similar to conventional computation. In addition, profit rate in the Islamic bank still refer interest rate as benchmark. The objective in this study is to determine a profit benchmark by using stochastic forecasting. Base Financing Rate (BFR) data from the year 1999 until 2014 is used in this study to forecast a profit for home financing and to find an optimum price. The Exponential Brownian Motion Model with drift is one of the stochastic forecasting models which has been identified as the best model to forecast the data in this study. After that, the probability of profit is compared to choose the best profit. The median of a profit distribution is proposed as a benchmark for determining the house price. This propose benchmark is fair to both bank and customer in terms of profit and installment, respectively. Keywords: forecasting, risk, analysis JEL Classifications: G170
其他摘要：Islamic Bank in Malaysia uses Bai’ Bithaman Ajil (BBA) method and Musharakah Mutanaqisah Partnership (MMP) method for the home financing process. However, these house price calculation methods are still similar to conventional computation. In addition, profit rate in the Islamic bank still refer interest rate as benchmark. The objective in this study is to determine a profit benchmark by using stochastic forecasting. Base Financing Rate (BFR) data from the year 1999 until 2014 is used in this study to forecast a profit for home financing and to find an optimum price. The Exponential Brownian Motion Model with drift is one of the stochastic forecasting models which has been identified as the best model to forecast the data in this study. After that, the probability of profit is compared to choose the best profit. The median of a profit distribution is proposed as a benchmark for determining the house price. This propose benchmark is fair to both bank and customer in terms of profit and installment, respectively. Keywords: forecasting, risk, analysis JEL Classifications: G170