Mortgage Securitization System (MSS) (a complementary system of Rastin Banking)

Bidabad, Bijan

doi:10.1108/ijlma-05-2016-0045

Cited by 9 publications

(5 citation statements)

References 6 publications

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“…The lender holds both legal and equitable title to the property and can only exercise their right to seize the property to fulfill the mortgage obligation (Farías, 2021). Bidabad (2017) conducted a study to examine the factors influencing the affordability of mortgage prices. The research involved gathering data through semi-structured questionnaires from a sample of individuals associated with three prominent mortgage financing institutions in West Africa.…”

Section: Mortgage Modelmentioning

confidence: 99%

Adoption of Different Housing Models to Access Housing by Households in Nairobi County

Kamande,

Oboka,

Gweyi

et al. 2023

EJBSM

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Purpose: This study aimed to evaluate adoption of different housing models to access housing by households in Nairobi County. Methodology: Employing a descriptive research design, the study investigates the impact of housing regulations on housing access through mortgage and cooperative models. The research sample comprises 385 households, CEOs of housing financing organizations, and government officers. Findings: The study reveals that adoption of housing model is shaped by diverse factors. The residency duration reflects both long-term and newer residents, highlighting the dynamic interplay of urban growth and migration. Notably, 35.0% of respondents have lived in their current houses for "4 - 6 years," emphasizing housing stability. The prevalent adoption of the Incremental (34.4%) and Cooperative Models (33.4%), alongside 41.4% awareness of the Mortgage Model, signifies residents' adaptability in navigating financial avenues for homeownership. Challenges like high construction costs persist, with 80% of Nairobi's population residing in informal settlements and slums. Strengthening regulatory frameworks is crucial, and policymakers should address financial barriers. This study provides insights for creating an inclusive and sustainable housing environment, essential for the 59.2% of renters expressing aspirations to transition into homeownership in Nairobi County. In conclusion, the housing landscape in Nairobi County, particularly Ruai Sub-County, reflects a mix of long-term and newer residents, emphasizing housing stability. The prevalent adoption of Incremental and Cooperative Models, along with awareness of the Mortgage Model, indicates residents' adaptability in pursuing homeownership. Unique Contribution to Theory, Practice and Policy: Utilizing the Public Interest Economic Regulation Theory (PIERT), the Q Theory of Housing Investment, and the Theory of Distributive Justice, the research explores the interplay between government regulations, market forces, and social equity in the context of affordable housing. To address challenges, policymakers should strengthen regulatory frameworks, enhance financial policies, and promote diverse housing models. Public awareness campaigns are vital. Recommendations include tailored financial products and inclusive strategies to meet the varied needs of the population. These measures aim to create an enabling environment for accessible and sustainable housing in Nairobi County, benefiting both existing and aspiring homeowners.

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Section: Mortgage Modelmentioning

confidence: 99%

Adoption of Different Housing Models to Access Housing by Households in Nairobi County

Kamande,

Oboka,

Gweyi

et al. 2023

EJBSM

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“…In the Instalment Financial Sharing (IFS)3 subsystem of Rastin Banking, the interest rate of instalments and rents are in accordance with investment real return, [11,12,13,14] and the bank is the intermediary of funds and receives a commission as an attorney or agent and provides financial and capital management services for his clients. In IFS, the return of principal capital and yield of conducting activities are paid to depositors periodically, and the ownership of the investment project will be transferred to the entrepreneur after the payment of the last instalment.…”

Section: Removing Interest Rate In Instalment Paymentsmentioning

confidence: 99%

Rastin partnership accounting part III: Instalment Financial Sharing (IFS)

Bijan Bidabad

2023

J.M.S

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Purpose: This paper aims to explain a new system of accounting for partnership financing that applies in Rastin Profit and Loss Sharing Banking. In this system, the interest rate is not used in calculations and accounting; and instead, the "time value" of capital based on the amount and duration of the partnership is used. In this part, we will go to the details of removing Riba in instalment payments accounting details.Design: Rastin Partnership Accounting principles have been founded on off-balance-sheet items and on the basis of the institutions' obligations to the depositors and receivers of financial resources, and they are in compliance with the nature of the intermediary financial activity (a partnership of depositor in the yields of the fund receiver via the bank).Findings: The distribution of profit among stakeholders (including workforce and capital owners) is accomplished according to the share of each beneficiary in the created value added. In this regard,Euler's theorem, as the best mathematical-economic innovation for the distribution of income, is applied.Research limitations: This system is novel, and it is required to be more elaborated for further practical development and adjustment.Practical implications: In this accounting system, the return of the partnership is distributed among sharers based on the amount and duration of their partnership. The penalty for delay in payment is calculated from the amount of the incurred loss due to negligence or blameworthy of the undertaker and not upon a penalty interest rate.Social implications: Interest rate as an essential factor in conventional accounting is not usable in Islamic banking and other similar institutions that work based on partnership, such as mutual funds and saving and loan associations. The proposed system removes this shortage and is fairer than conventional accounting.Originality/value: The approach of this accounting system is fully different from conventional accounting because of the intrinsic characteristics of the intermediary role of financial partnership institutions and Islamic banks.

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“…Bank will gain commission for rendering this service. f. Mortgage Securitization System (MSS) (Bidabad, 2017a): By assessing the value of the asset, the bank can issue Guarantee Certificate in different lots and periods for the asset owners. The holder of this certificate can apply this certificate to banks, other institutions, real persons or legal entities (who accept these certificates as guaranty) for his/her own or on behalf of the others.…”

Section: Collateral Registration System (Crs): This System Is Estamentioning

confidence: 99%

General Regulatory Framework in Rastin Profit and Loss Sharing Banking:

Bidabad

2019

JBFEM

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This paper aims to explain some auxiliary regulatory pillars and complementary considerations and systems in Rastin Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the auxiliary preparations of this banking system. Rastin Banking complies with the nature of financial intermediary activity (partnership of depositor in the yields of the fund receiver via the bank). In order to fulfil this goal despite particular formation, financial structure, instruments and workflow many other auxiliary considerations are defined to remove banking shortages in a legal framework. To handle Rastin Banking and to remove the common banking obstacles, a set of particular theoretical and operational regulatory frameworks should be defined to fulfil the participation operations. In this paper, we will have a look at the auxiliary legal environment to setup Rastin Banking. This system requires more elaborations for further practical development and adjustment. In this system, the investment return of the participation is distributed to the parties of financial partnership (depositor, entrepreneur and bank), and it is done by eliminating fixed interest rate.

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Mortgage Securitization System (MSS) (a complementary system of Rastin Banking)

Cited by 9 publications

References 6 publications

Adoption of Different Housing Models to Access Housing by Households in Nairobi County

Adoption of Different Housing Models to Access Housing by Households in Nairobi County

Rastin partnership accounting part III: Instalment Financial Sharing (IFS)

General Regulatory Framework in Rastin Profit and Loss Sharing Banking:

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