Business Analysis For Funding Banks

However, Islamic Banks in Bangladesh since their inception have been facing multifarious problems in their operation, which needs to be carefully addressed. It is partnership between two events, the capital provider, the depositor in this case and the provider of ability and labor, here the financial institution. In Islamic phrases the depositors are the “Shahib-Al-Maal” and the Bank is “Mudarib”. In this sort of partnership the revenue of investment is divided as per agreed upon ratio and the loss is borne by the provider of capital, the depositor in this case.

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The capital might have been used as advances to earn future curiosity earnings. By reserving funds, it slows down bank’s development in the long run. Thus, banks usually put aside a higher portion during the years once they earn higher profits.

Khaterine William

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