Why is Mudaraba not Practiced by Islamic Banks How can Islamic Banks Apply Mudaraba Financing Method through Models

A partnership agreement known as a mudaraba is one in which party contributes finance and the other labor or skills to joint venture. pre-determined ratio used divide gains, capital provider bears losses. Due its compliance with principles of risk-sharing, profit-sharing, interest prohibition, principal sources financing Islamic banking. However, due number difficulties limitations, including moral hazard, adverse selection, agency issues, lack standardization, legal ambiguity, regulatory concerns, not frequently by banks. The purpose this study investigate factors that contribute banks' limited use suggest some models could help implementation various fields situations. paper uses qualitative methodology based on review analysis literature. concludes banks can implement using variety models, deposit, investment, project, social, hybrid mudaraba. also makes recommendations for boosting viability efficacy financing, enhancing governance, creating framework, promoting standardization disclosure, supervision monitoring, raising awareness education.