On the funding side of an Islamic bank’s balance sheet, we are expected to find three types of equities - equity of musharakah, equity of mudharabah and equity of sukuk. Our approach to these equity types needs to be changed to respond effectively to Basel III reforms and benefit from and contribute to genuine Islamic finance.
With this spirit we suggest the perpetual participation sukuk within the framework of Basel III as additional tier-1 capital………………………………………..Full Article: Source