Mudharabah

Mudharabah Background Mudharabah require is a profit sharing contract betwixt the entrepreneur and the capital provider. Mudharabah contract is apply in lay taking arrangement such as up-to-date account, savings account and investment account. The contract is also applied in inter- fix investment and Muslim bonds. In takaful industry, mudharabah contract is apply as one of the ope proportionalitynal model as well as being applied for investing the takaful funds. Issues 1. Floating Muslim conveyable official document of Deposit (INID) Bank Negara Malaysia has introduced move INID with the following instruments: i. A node put forwards money into a bank; ii. The bank accepts customers deposit and issues INID to the customer as an evidence of receiving deposit; iii. INID is tradable in the alternate market; iv. On maturity, the customer or holder of INID returns it to the bank and receives the principal economic value of INID and the declare dividend; and v. The stated dividend is from the profit derived from the investment of the deposit. The term floating refers to the characteristic of the harvest-home that changes in value based on the dividend declared by the bank from time to time. The question is whether the investment mechanism mentioned in a higher place is in ocellus with mudharabah principle.

Resolution The Council in its 3rd meeting held on twenty-eighth October 1997 / 26th Jamadil Akhir 1418 resolved that Floating Islamic passable Instrument of Deposit (INID) using mudharabah concept is permissible and tradable in the secondary market. 2. Mud harabah Current Account There was a proposa! l from Islamic banking institution to introduce mudharabah current account product. This account is searching from the wadiah current account in which the payment of dividend to customers is at the make up discretion of the bank. In this mudharabah current account, customers have right to parcel any profits generated in proportion to a pre-agreed proportionality by both parties at the point of...If you want to give a full essay, order it on our website: BestEssayCheap.com

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