Convergence and Divergence Analysis in Islamic Financing

Abstract

This study aims to determine the convergence and divergence between the theory and practice of Mudaraba and Musyaraka financing in Islamic Banking. The method used in this study is a combination of reviewing the existing literature and critical analysis of the results of several relevant studies to analyze the convergence or divergence between the theory and practice of Mudaraba and Musyaraka financing in Islamic Banking. The findings show that the divergence in the financing of M udaraba and M usyaraka contracts tends to be less than the convergence. This can be caused by the times and the different needs of these developments, so there is a need for innovation and diversification of M udaraba and M usyaraka financing which makes it slightly different between practice and theory.