06.06.2011 - Islamic banking special: Expect a variety of new products and business financing options
Islamic financing modes are not limited to risk sharing products only. Instead, the Islamic contracts could be equity based, asset based or leasing transactions. A product like car financing may be offered through Sharia-compliant contracts, for example, Murabaha, Musharaka or Ijara. Individual banks would chose the relevant contracts based on the local legal and regulatory requirements, the bank’s risk appetite, and the needs of its target market. Thanks to extensive research studies over the past several decades, there are now a number of institutes, Sharia scholars and bankers engaged in product development that are in compliance with Islamic financial laws and serve the contemporary needs of businesses and individuals..............................................Full Article: Source
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