Prohibition of Riba
Interest charging is prohibited. Financing without interest-bearing loans and credits. Income from real transactions only.
What is Islamic Banking?
These are Sharia-compliant financial services.
The principles of Islamic (partnership) finance include, among others:
Prohibition of Gharar
Only transparent and clear terms. Excessive risks, speculation, gambling, or non-transparent transactions are excluded.
Prohibition of certain activities (Haram)
Investment and finance in limited sectors: excluding alcohol, pork, gambling, weapons, tobacco, etc.
Profit and loss sharing
Partnership, cooperation, profit and loss sharing.
Islamic Financial Products
Murabaha
(Cost-plus financing):
The Bank purchases an asset and resells it to the client at a pre-agreed markup with deferred payments. The right of ownership of the goods passes to the client immediately.
Ijara (Leasing):
Renting of property with a subsequent purchase option, where the Bank remains the owner of the property until full payment by the client.
Mudaraba:
A form of partnership where one party provides capital and the other provides management and labour. Profits are shared in an agreed proportion, while losses are borne solely by the investor.
Wakala
(Agency Agreement):
The client transfers funds to the agent bank for investment in specific projects for a pre-agreed fee.
Hybrid Contracts:
A transaction involving different types of Islamic finance contracts (e.g., lease with transfer of ownership or partnership with agency management).
Istisna:
A type of sale with a condition for goods manufacture, where the Bank undertakes to finance the creation or production of an asset (real estate, equipment, infrastructure) at the client's request.
The Bank has an Islamic Finance Committee,
responsible for verifying the compliance of products and services with Sharia principles. Dar Al Sharia serves as the Sharia Consultant.
The Bank is a member of international associations
AAOIFI
IFSB