Mudaraba term deposits in Islamic banking - the crucial aspects

Iwona Sobol

Abstract

Significance of Islamic banking has been increasing in the last few decades. A distinctive feature of Islamic banks is the obligation to conduct operations in accordance with the principles of sharia, which is the religious law of Muslims. The prohibition of interest (riba) is considered to be the most fundamental sharia principle that Islamic banks must follow. As a result, transactions conducted by Islamic banks cannot be based on interest. This principle applies also to deposits which, preferably, should be based on the principle of profit and loss sharing. However, banks which offer this kind of deposits, face a number of problems. To overcome them is one of the challenges for the Islamic banking industry.
Author Iwona Sobol IHZ
Iwona Sobol,,
- Institute of International Business
Journal seriesFINANSE Czasopismo Komitetu Nauk o Finansach PAN, ISSN 1899-4822
Issue year2017
No1 (10)
Pages373-382
Publication size in sheets0.5
Keywords in EnglishIslamic banking, term deposits, profit and loss sharing, mudaraba
URL http://www.knfpan.pan.pl/images/Fin._110-17_21-I.Sobol.pdf
Languageen angielski
Score (nominal)12
ScoreMinisterial score = 12.0, 26-01-2018, ArticleFromJournal
Ministerial score (2013-2016) = 12.0, 26-01-2018, ArticleFromJournal
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