February 15, 2018
The commercial and investment banks had operated in their independent domains for a good part of the twentieth century. The former catered to individuals and businesses […]
February 11, 2018
Islamic banks use many other accessory contracts including Wakalah, Jua’lah, Tawarruq, Kafalah, Rahn, Hawalah, Istijrar, Amanah, Wadiah, and Hibah. Ju’alah is a reward or payment for […]
February 10, 2018
The instrument of Ijarah brings Shari’ah compliance to the traditional lease contracts of commercial institutions. Elements of Riba or gharar present in many lease contracts make […]
February 10, 2018
Salam is a cash sales agreement where the seller promises to provide the buyer with an agreed product at a future date in exchange for an […]
February 6, 2018
Both traditional and Islamic banks have to deal with short term cash issues. They either have too much cash which needs to be invested to […]
February 5, 2018
Murabaha is an instrument where the bank acquires a product upon request from the customer and sells it at an agreed upon profit. This is an […]
February 5, 2018
Mudarabah and Musharakah are the preferred methods of interest-free financing. However, they are not well suited for modern day acquisition of property and other tangible assets. […]
February 3, 2018
Qard is any kind of loan given by one party to the other and which is due back to the lender within an agreed upon contract. […]
February 2, 2018
Indexation is a part of financial contract where the amount due is adjusted for the change in value of currency based on a defined index. In […]