Islamic Asset-Backed Securities Revolutionize Long-Term Financing in Housing Market
Islamic banks are facing challenges in meeting the increasing demand for housing financing. To address this, they are looking into long-term financing options through Islamic capital market products like asset-backed securities. One such instrument is the Letter of Participation, which is being developed by Financial Multigriya in Indonesia. Regulations and guidelines have been put in place to support the growth of these Islamic investment instruments. Despite some gaps, the prospects for Islamic asset-backed securities are promising.