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As wadiah is a trust, the depository becomes the guarantor and, therefore guarantees repayment of the whole amount of the deposits, or any part thereof, outstanding in the account of depositors, when demanded. The depositors are not entitled to any share of the profits but the depository may provide returns to the depositors as a token of appreciation.
Meanwhile, for financing, Islamic banks offer public variety of products which follow the concept of Mudarabah (profit sharing), Musharakah (joint venture), Ijarah (leasing) and etc. If we further study these concepts, we will find out that they do not involve any Riba but they provide rewards and profit sharing as return, for instance, Mudarabah...
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Common topics in this essay:
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