| Summary: |
This study examines the agency problems that arise in muèOErabah financing
in Indonesian Rural Sharia Banks. The study focus on project attributes,
especially those projects that might consider muèOErabah financing, and the
attributes of muèOErib who received financing. The research is explorative in
nature, combining both qualitative and quantitative approaches. The study
found that six attributes were considered relevent from the muèOErabah projects
point of view. These include: the prospect of the project, availability of
collateral, healthiness of the project, the project’s financial statements, clarity
of contract conditions, and conformity of time period. With regard to muèOErib
attributes, five characteristics were considered important. They include:
business capacity, collateral, muèOErib’s reputation and family background,
and their business commitments. Further quantitative analysis has also been
conducted to examine those attributes
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