This new financier inside an interest-affect financing do not suffer losings, just like the financier for the Musharaka is also endure losings in case your mutual campaign fails to produce fruit (Usmani, Meters

The money-and-losses revealing program has its own root from the old version of financial support practiced because of the Arabs as the a long time before the fresh advent of Islam. Because of it historic reasoning, students think profit-and-losings discussing financial instruments is the most authentic and most guaranteeing particular Islamic contracts (Ariff, 1982). Mudaraba (money trusteeship) and you will Musharaka (collateral commitment) are two such as for example monetary products in accordance with the cash-and-losings sharing system, where instead of financing currency to a business owner from the a predetermined speed off come back, the fresh financier offers on venture’s payouts and you can losses (The new Economist 2001). (más…)