Inter-Bank Unrestricted Sample Clauses

Inter-Bank Unrestricted. Wakalah Agreement based on On-Balance Sheet treatment
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Inter-Bank Unrestricted. (On-Balance Sheet) Wakalah Agreement When presented with the Wakalah concept (based on the typical documentation and structure used by most institutions), some argue that it displays the characteristic of a fund management activity. Their primary concern revolves around the customer bearing the risk of loss arising from the underlying Wakalah pool of assets and therefore lacking capital certainty. Consequently, there is an argument that deposits taken under classical Wakalah need to be recognized as “client money” and accounted for and reported accordingly and that, although suitable for some applications, it is flawed under this interpretation as a money market instrument. Therefore, it is crucial that an appropriate Wakalah money market solution comprising of the following two 5 See for details AAOIFI Xxxxx’ah Standard no.23 (Agency) 2010, clause4, pp.415-417.

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