Discuss Forum
1. In Islamic Banking the customers are considered as -----and thus entitled to profit sharing.
- A. partners
- B. partners
- C. partners
- D. partners
Answer: Option A
Explanation:
Profit and Loss Sharing (also called PLS or "participatory" banking is a method of finance used by Islamic financial or Shariah - compliant institutions to comply with the religious prohibition on interest on loans that most Muslims subscribe to.
Many sources state there are two varieties of profit and loss sharing used by Islamic banks – Mudarabah ("trustee finance" or passive partnership contract) and Musharakah (equity participation contract).
Post your comments here: