Factors determining the financing decision of Islamic banks in Bahrain - An empirical analysis

Abstract

This study aims to investigate the most common Islamic fund utilization methods and practices, or alternatively the Islamic financial decision making of Khaleeji Commercial Bank (KHCB). This study is based on information obtained directly from the bank and some public information on the internet as well as from the financial statements of the bank. The findings of this study show that KHCB uses a variety of Islamic finance strategies, such as Murabaha and Musharakah, etc., in its commercial lending and borrowing practices. The study also finds that Sukuk and Ijarah are the foremost profitable fund utilization methods employed by the KHCB. This study will provide essential insights regarding the most common Islamic modes of fund use and the most widely used by banks across the world, which will aid the decision-makers, scholars, and workers in the Islamic banking sector to gain more practical knowledge about the current market.