The Impact of Al-Mudayanahand Al-Musharakahon the Earning of Islamic Banks: A Case study of the Jordanian Islamic Bank during the Period (2000-2015)

Abstract

The study aims at clarifying the impact of al-mudayanah represented by (al-murabahah,al-ijarah)and al-musharakah on the earnings of Islamic banks during the period (2000-2015), taking the Jordanian Islamic Bank as a Case study.The study reached a group of results, the most important of which are the existence of a positive statistically significant relationship for each of al-murabahahand al-ijarah on return of assets and the existence of a negative statistically significant relationship between al-musharakah and return on assets. The study also found out the existence of a positive statistically significant relationship for each of al-murabahahand al-ijarahon the return on equityand the existence of a negative statistically significant relationship between al-musharakah and return on equity.The study presented the following of recommendations: the necessity for the rehabilitation of leaders and people working in the bank with functional experiences, recruiting competent people in applying the methods of finance investment in Islamic banking. Thestudy also recommend the necessity for benefiting from the experiences of Islamic banks widely spread all over the world in the field of using Islamic methods of financing such as temporary sharecropping contract, sharecropping contract over the lease of a plantation, forward buying, etc., and which are still not used in Jordanian Islamic banks