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Islamic Window

An entity that operates as part of another entity (a conventional financial institution such as a bank) solely for provision...

Tier-1 Capital

A capital tier that constitutes the first line of defense or buffer against losses to an Islamic bank's capital that...

Tier-2 Capital

A capital tier that constitutes an addition to minimum capital requirements and represents a line of defense or buffer against...

Wakalah Muqayyadah

Arabic (وكالة مقيدة) for restricted agency/ restricted wakalah; an agency contract (aqd al-wakalah) that the principal (muwakkel) restricts the acts...

Wakalah Mulzimah

Arabic (وكالة ملزمة) for a wakalah contract (aqd al-wakalah) that is binding on either party or both. While wakalah is...

Wakalah bil-Istithmar

A method (Arabic for وكالة الاستثمار) whereby Islamic financial institutions manage funds on behalf of their customers. This involves providing...

Parallel Istisna’a

An istisna'a contract in which the buyer (manufacture orderer, or almustasni') doesn't set a condition in the contract obliging the...

Wakalat al-Istithmar

A method (Arabic for وكالة الاستثمار) whereby Islamic financial institutions manage funds on behalf of their customers. This involves providing...

Wakalatul-Istithmar

A method (Arabic for وكالة الاستثمار) whereby Islamic financial institutions manage funds on behalf of their customers. This involves providing...

Profit Rate Risk

With respect to unrestricted investment account (URIA) holders, it is the risk facing an Islamic bank or financial institution (IFI) when URIA holders may withdraw...