Obstacles to Implementing Participation-in-Own in Islamic Banks: A Case Study of AlYaqeen Islamic Bank

Abstract

This study examined the obstacles to implementing the continuity of ownership in Islamic banks. It aimed to identify the specific constraints hindering the application of this model, stemming from the problem of existing limitations that restrict its use. The study analyzed five variables: laws and regulations, management readiness, banking awareness, central bank policies, and human expertise and competencies. The descriptive-analytical approach was employed, and data was collected through questionnaires, which were then evaluated and analyzed to determine the relationships between the variables. The study sample consisted of managers, assistant managers, and employees working in the bank's various units, including the head office and all branches in Tripoli. The data was analyzed using the Statistical Package for the Social Sciences (SPSS). The study concluded that there is no benefit to be gained from the experiences of other Islamic countries in raising employee awareness regarding the continuity of ownership. The statistical analysis revealed weaknesses in laws and regulations, and a low level of administrative readiness to implement the ending partnership formula. The results showed a lack of expertise and human competencies necessary to implement the ending partnership formula, a lack of banking awareness, and weak central bank policies aimed at activating the implementation of the ending partnership formula. Among the most important recommendations is the necessity of activating the implementation of the ending partnership formula. A plan must be prepared for this, which includes setting the legislative and legal framework that regulates the process of issuing and trading the ending partnership formula, training the personnel who are entrusted with the task of issuing and trading this formula, and the necessity of employing Islamic bonds for investment and financing investment projects and benefiting from them in financing projects and financing the deficit.