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Profit and loss sharing in agriculture: An application of Islamic banking
Author(s) -
Crane Laurence M.,
Leatham David J.
Publication year - 1993
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199307)9:4<403::aid-agr2720090410>3.0.co;2-x
Subject(s) - islamic banking , intermediary , financial intermediary , agriculture , profit (economics) , equity (law) , islam , business , profit sharing , economics , finance , financial system , microeconomics , ecology , philosophy , theology , political science , law , biology
This study reviews profit and loss sharing instruments used in Islamic banking. It is argued that US financial intermediaries can use profit and loss sharing instruments to provide external equity capital needed to finance agricultural production. Such an innovation would help reduce financial risk in agriculture. © 1993 John Wiley & Sons, Inc.