Obstacles to applying fixed and decreasing participation in bank financing

An applied study on the Republic Bank in Tripoli

Abstract

The form of participatory financing is one form of investment of funds in Islamic banks, which is one of the most important financing formulas and the most flexible and appropriate and comprehensive. Where the problem of the study is that there are difficulties facing financing Islamic banks, especially when using funding in the form of declining participation. The study also aimed at identifying the most important obstacles to applying the decreasing participation formula in the Republic Bank Where the results showed that the most important obstacles to the application of the declining participation formula in the Bank of the Republic is that the legislation and banking laws issued by the Central Bank is insufficient in the application of Islamic banking tools. There should also be training and awareness of the human cadres by sending employees to intensive training courses both internal and external, and focus on the practical side in order to increase the efficiency of the employees. It is necessary to provide and establish an integrated electronic system specialized in Islamic banking products with a modern database for all customers of the Bank of the Republic.