Deposits pool management in Islamic banks in Pakistan : a case of term deposit receipts (TDRs)‎

الملخص EN

This narrative study reports and analyses depoisits pool management in Pakistan, which is an important fund raising instrument used by Islamic banks.

The study expamplifies and discusses a complete process starting with the account opening, and its placement in the banks balancesheet, followed by the common pool creation process.

It also discusses the role of bank as investor, in addition to a pool manager, and distributation of profits between the the bank and the pool and then among various investers within the pool using the daily average product and the weightages mechanism.

Profit Equalization Reserve (PER) and investment Risk Reserve (IRR) are discussed in the context of their respective Shar¯i‘ah basis, to develop an overall understanding of term deposit receipts of Islamic Banks.