ISLAMIC FINANCE HISTORY
First effort of Islamic finance is in 1960’s. In 1963, Mit Ghamr Local Saving Bank was established in Eygpt. The operation is based on German Saving Bank. The purpose of the bank is to mobilize the idle saving of Musl...
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...ribute profit to the customer which is can be calculated based on gross profit is permissible. In current practice in Islamic financial system, they used to calculate the gross profit between institution and customer by deducted whole operation profit and investment finds to direct expense. After getting the value, the institution will get the actual value to the customer. Based on SAC meeting, they conclude that the method is permissible. It is because the institution have aim to safeguard the customer as the depositor and investor in their institution. In musyarakah contract, all partners were agreed about the proportion of gross profit and net profit. But in mudharabah case, majority consulters agreed that the mudarib must responsible to bear the whole operating cost include indirect cost. Therefore, the method to distribute gross profit is must meet the need.
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