IMPLEMENTATION OF RESTRUCTURING ISTISNA HOUSING: CONTROLLING THE FINANCING RISK IN SHARIA BANKING

Abstract

The development of human population is proportional to the increasing need for housing as a
place to live. The high cost of home financing serves the cause for Islamic banking to provide
an alternative, in the form of istisna contracts. In carrying out the operational practice of istisna
housing, Islamic banking is never free from risks which may at any time cause the bank some
losses. The purpose of this study is to analyze the risk management of istisna housing and
efforts to save issues in financing. This is a theoretical and doctrinal research, using legal and
conceptual approaches. Istisna housing restructuring becomes a main point in an attempt to
implement risk management and rescue problematic financing. Istisna restructuring includes
rescheduling, reconditioning, and restructuring. The success of istisna restructuring in
minimizing risk and overcoming financing problems will become a symbol of a good Islamic
banking system and can increase customer trust.