Islamic Banking Products and Services
This domain tests your ability to map products to contract types, separate debt-based from equity- and asset-based structures, and spot clauses that turn a valid structure into riba.
Liability side
Current accounts (qard hasan or wadiah), savings accounts (wadiah with discretionary hibah, or unrestricted mudaraba), term deposits (restricted or unrestricted mudaraba), and sukuk issued for funding.
Asset side
- Murabaha - cost-plus deferred sale; cost and profit must be disclosed, and the bank must own the goods first.
- Ijarah - lease of usufruct; the bank bears ownership risks (major maintenance, insurance, destruction). Ijarah muntahia bittamleek ends in a gift or sale.
- Musharaka - joint equity; diminishing musharaka is the standard home-finance form.
- Mudaraba - capital from the bank, management from the partner; loss falls on capital unless there is negligence.
- Salam - full prepayment for a specified future delivery; istisna - manufacture with staged payments.
- Fee-based - wakala, ju'ala, kafala, hawala, safe custody.
Worked example
Goods cost the bank $1,000; customs and documentation add $20; the bank sells for $1,120 payable in six months. Permissible cost is $1,020 and profit is $100, fixed at contract. If the customer pays late, no increase may be added to the price; a charitable penalty may apply only if written into the contract and approved by the SSB.
Traps
Rentals reset at the bank's discretion in ijarah; a late-payment penalty that flows into bank income; salam without full prepayment; tawarruq used without SSB sanction.