Obstacles to applying the parallel Istisna’ formula, an applied study on the Jumhouria Bank, Tripoli area

Abstract

This research paper aimed to find out and analyze the factors and obstacles that prevent using Istisna’ and Parallel Istisna at Jumhouria Bank and its branches in Tripoli. The study relied on an analysis of five factors that represent the difficulty of using the parallel Istisna formula, and these obstacles are as followings: Legal obstacles, administrative obstacles, credit and investment obstacles, technical obstacles, and implementation obstacles. A questionnaire method was used to collect data, which was distributed on the study sample consisted of 37 items. Data were analysed by using the statistical program (SPSS). Data were tested with a mean scale and a T-test for one independent sample with 5% significance level. The study concluded that all the studied factors constitute obstacles for Jumhouria Bank to present Parallel Istisna. According to the sample study answers, it shows that the factor of executive obstacles was the most influential factor, then the factor of administrative obstacles, followed by credit and investment obstacles, also technical and monetary obstacles, the legal obstacles came as the last.