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Wednesday 10 August 2011

Basic Concept of MUSHARAKA & MUDARABA

ISLAMIC FINANCING AND BANKING

The structure of Islamic Banking and financing is raised on profit or loss basis completely alienating itself from interest or usury.In other words the system is a substitute for interest-based economy.
Islamic bank can be defined as a financial institution which operates in accordance with the principles of Shariah. It does not advance loans at interest, and rather shares all risks with borrowing business corporations or individuals.

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