Sunday, November 12, 2017

Islamic finance in Europe (110)

Continuation

Examples of Islamic financial contracts and their underlying characteristics
Contact
Type
Underlying contract type
Ijarah
Debt-based
Lease
Murabahah
Debt-based
Cost-plus mark up
Salam
Debt-based
Future contract
Istisna
Debt-based
Manufacturing contract
Musharakah
Equity-based
Profit and loss sharing
Mudarabah
Equity-based
Profit-sharing and loss-bearing
Wadiah
Trust Contract
Safe custody of assets
Qard
Debt-based
Interest free financing

Sources: Islamic banks, KFH Research
From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)

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