What is the ruling on depositing money in an Islamic bank that deals with Mudarabah without specifying the profit, noting that the bank has not recorded any losses?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
"The sound Islamic banks are often reassuring due to the presence of a Sharia board that supervises their transactions. The fact that an Islamic bank does not incur losses does not make Mudarabah (profit-sharing) prohibited. Specifying the profit in Mudarabah is a condition; the percentage of both the Mudarib (entrepreneur) and the Rab al-Mal (investor) from the profits, not from the capital, must be known. This is the difference between Islamic banks and interest-based banks."
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 65416
- Imported
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- Source text, unreviewed
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