Tuesday, November 14, 2017

Islamic finance in Europe (111)

Continuation
The financial intermediation role of an IIFS involves mobilising funds from depositors/investors via Shari’ah-compliant contracts.
They provide these funds to:
-      firms
-      or individuals
to finance assets or business activities.
The key distinguishing characteristic of an IIFS is its underlying contractual relationship with its customers.
These contractual relationships underline the risk-return profile of the:
-      products
-      and services
offered by an IIFS.
It includes its own risk profile.

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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