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Assignment: Ibf: Name: Areeba Zaidi Roll No: 17525 Campus: Gulshan
Assignment: Ibf: Name: Areeba Zaidi Roll No: 17525 Campus: Gulshan
Required:
ANSWER:
ii. What are the roles (names) of Islamic Bank and customer in this
contract?
ANSWER:
iii. If the Islamic Bank decides that the customer (depositor) will be
compensated with a 10% rate of return at the end of each month for
the first year and then according to the KIBOR rate. Is this return
allowed in Islamic Law?
ANSWER:
No, this rate of return is not allowed in Islamic law as it is not allowed
to distribute the profit only when the profit is gained in the business,
before making the profit its distribution is not allowed and that
distribution also should be according to the ratio that has been decided
before starting the contract.
iv. What are Islamic principles (Shariah rulings) regarding the profit and
loss distribution in a Mudharabah contract?
ANSWER:
When the business is started and profit is made than the profit must
be distributed according to the ratio that has set before starting the
business while doing the contract. But if, the ratio of the profit is
not decided before starting the business and profit is gained
without both the parties being agreed on any definite ratio than in
this case according to Islamic principles the profit must be divided
in both the parties with 50-50% sharing.
Mudharib cannot claim any excessive amount else than the profit
decided to get. It is not allowed in the Islamic principles for the
mudharib to ask for extra amount of money as his fees or salary,
the profit he is getting is the fees of his work.