Profit sharing ratios in mudaraba contract revisited

Zubair Hasan

MPRA Paper from University Library of Munich, Germany

Abstract: The paper discusses three interconnected issues: Is the profit sharing between the Islamic banks and the depositors fair, can the profit sharing ratio between the banks and the borrowers on the one hand and between the banks and depositors on the other be identical in a two-tier mudaraba arrangement, and can the Central Bank of a country use the sharing of profit ratio as a tool for credit control in the economy?

Keywords: Mudarabah, Islamic banks; profit sharing ratio; credit control (search for similar items in EconPapers)
JEL-codes: E00 E42 E58 (search for similar items in EconPapers)
Date: 2009, Revised 2010
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Citations: View citations in EconPapers (7)

Published in International Journal of Banking and Finance 1.7(2010): pp. 1-20

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:21843

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