An Islamic bank has approved a Mudarabah facility for a customer whereby the customer will receive Mudarabah capital from the bank for investment in shariah compliant business activities

Fatawa Question

An Islamic bank has approved a Mudarabah facility for a customer whereby the customer will receive Mudarabah capital from the bank for investment in Shariah compliant business activities and the realized profit shall be distributed between the Islamic bank and the customer as per an agreed ratio. The Mudarabah facility is approved for a period of one year ; however, the Islamic bank would like to explore the possibility of receiving the Mudarabah profit on a quarterly basis, rather than waiting for the maturity of the Mudarabah facility after a year. Shariah guidance is sought in this regard keeping in consideration that the customer has no objection to the bank’s desire.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2015-06-03

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-783017

• APA
• MLA
• AMA