Mudharabah Interbank Investment
Mudharabah Interbank Investment
Mudharabah interbank investment represents a significant application of Islamic finance principles within the interbank money market. It facilitates short-term liquidity management and investment opportunities for Islamic banks while adhering to Sharia law. The core concept relies on a profit-sharing agreement where one bank (the rab-ul-mal or investor) provides capital to another bank (the mudharib or entrepreneur) to undertake a specific business or investment activity.