04.10.2011 - Profit on Mudaraba deposit in Islamic banking
Although the functions of a modern bank are expanded manifold with the dynamic progress of state-of-the-art technology, the core functions still remain as collecting and providing of fund. Conventionally these are conducted by a bank as borrower and lender of money. The vehicles of these two major functions are liability or deposit products, and asset or investment (loan) products. Let us now look at the liability product or the deposit product, and then gradually concentrate on a specific type of deposit. This is the deposit collected on Mudaraba (profit sharing) principle, obviously under Islamic banking operations..............................................Full Article: Source
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