Source of funds on which a bank’s growth depends. Islamic banks offer various types of retail products which include

For  Wholesale fund providers the Islamic banks   designed special  scheme for them such as

In PSIA  account , the………. is solely responsible for any loss that maybe incurred.

The main differences  between the fixed  deposit in the conventional  and PSIA  account ARE :

When an Islamic bank receives funds for investment in some specific business, sector, or project, it is called a

The restricted mudaraba account holders will share only in the profit and loss of those particular businesses, sectors or projects for which they have deposited their money. They are impacted by profits or losses from the other operations or projects in the general Mudaraba accounts. This statement is :

In the inter -bank partnership, the investing bank participates in a special investment pool as …….. with the accepting bank(Islamic bank) as ………. The risk and reward of the pool are shared as per the rules of Musharaka

In the inter -bank Wakala   financing the financing bank appoints the Islamic bank as ……… through a Wakala contract, where by it bears the risks and rewards of the new assets till the maturity and is entitled to the profit earned on such assets. Islamic bank, acting as an agent, is entitled to a …… for its services which is not linked to the profit or loss of the investment. At maturity date, the funds are paid back to the financing bank along with the profit.

In the inter -bank  financing commodity Murabaha can be also used to generate liquidity in order to meet shortage of funds. Under such an arrangement the Islamic bank will purchase a commodity/stock which is liquid in nature (such as …………..) on credit from a financial institution.

The …………….. is utilized by an Islamic bank to back its funding activities. This may include transaction such as Musharaka, Ijarah and Murabaha. The returns generated from these activities are divided between the equity holders of the bank and the investment account holders.

 In  case of profit distribution  between the Islamic banks and investment account holders, the Islamic bank must deduct from    the cross  income, the earnings on :

In case of distribution of loss ,in order to avoid the risk of mass withdrawal of investment funds that would occur in case of loss, the Islamic bank can compensate the customer for any loss arising on their investments. It can be done under two concepts:

The next  step in the process  after  the creation  of  Mudaraba investment  pool is :

The pool will have categories based on the tenor of theinvestment fund. For example:

- Three month

-  Six month

-  1 year

  The categorization above is :

Upon investment, the customer would beassigned a specific weightage based on the investment category. For example:

- Three month     0.6

- Six month           0.7

- One year            1

The discrepancy in weightages based on the tenor of the investment fund is :

The current account holders can stipulate condition in the account agreement to receive gift from the bank regularly. This is condition  is