Why Securitization is appreciable for Islamic Institutions?
As we know that global securitization market has been driven by several factors. The major among which are the case that the cost of capital is tending to be tremendously increasing esp. in those countries who has a low credit rating class (where major Arab countries listed). In addition to capital regulatory requirements imposed by monetary and supervisory bodies. So it’s inevitably for institutions there to resort to another innovative, cheaper sources of capital, and the securitization can help actively in this connection. Also, alongside with the growing convergence of capital markets through global financial dynamism, and ongoing technological advancement, the barriers among such markets were removed, so severe competition for efficient type of capital has been aggravated made the reliance upon new sources is inevitably art for business survival. Another important dimension that made securitization very appreciable industry for Islamic institutions is that it can be viewed as a vi
