Islamic finance contracts and instruments practiced in Islamic banks : contracts practiced by Islamic banks
Fatawa Question
Assalamu ‘Alaykum Warohmatullohi Wa Barakatuh, Dear respected Doc. Monzer, I'm deeply impressed with the abundance of knowledge that you have..I pray that it will be such a great contribution to our Ummah with ultimate rewards from Allah 'Azza wa Jall. Doc., I would like to ask you a few questions regarding the instruments practiced by Islamic banks. Actually I'm an Islamic banking student studying in Jordan in بكالوريوس but I'm totally not an Arab-speaker so there are some ideas that I couldn't understand very well, although, perhaps it would have been the very basic ones.. 1) In Mudarabah contract, I understood that the distribution of profit is carried out in the form of 'nisbah' such as 70 % to Robbul Mal and 30 % to Mudarib. It is unlawful to have a fixed amount of return to be pre-determined in the beginning of contract, and the thing which I didn't understand is the reason of this prohibition in this case. I just knew (if it's true) that the reason is coz it will be Riba, based on the principle : كل قرض جر نفعا فهو الربا . Actually I still couldn’t relate this concept with Mudarabah contract. It is a form of agreement between 2 people, why in this case it is called قرض ? ? 2) I've learnt that some of the factors that influence investment (I) is the interest rate (IR) and marginal efficiency of investment (MEI), and the relationship between IR and I is negative, whereas between MEI and I is positive. Can you explain what actually MEI is ? And how come the relationship between IR and I is negative ? ? I really apologize that my question seems to be theoretical, nevertheless thank you very much in advance for your attention. May Allah bless you, Wassalam
Fatwa
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Publication Date
2012-04-02
Main Subjects
Financial and Accounting Sciences
Islamic Studies
Topics
No. of Pages
1
Data Type
Fatawa
Language
English
Record ID
BIM-730761
American Psychological Association (APA)
Qahf, Mundhir. 2012-04-02. Islamic finance contracts and instruments practiced in Islamic banks : contracts practiced by Islamic banks. .
https://search.emarefa.net/detail/BIM-730761
Modern Language Association (MLA)
Qahf, Mundhir. Islamic finance contracts and instruments practiced in Islamic banks : contracts practiced by Islamic banks. 2012-04-02.
https://search.emarefa.net/detail/BIM-730761
American Medical Association (AMA)
Qahf, Mundhir. 2012-04-02. Islamic finance contracts and instruments practiced in Islamic banks : contracts practiced by Islamic banks.
https://search.emarefa.net/detail/BIM-730761
