Thrust on adopting Income Sharing Ratio
Wednesday, 21 April 2010
FE Report
Speakers at a seminar in the city Tuesday asked the country's banks to adopt Income Sharing Ratio (ISR)-based module for distribution of profit to their Mudaraba depositors.
The new ISR based module should gradually come to replace the existing Weightage based framework for distribution of profits as the latest model appears more fair to the depositors and therefore more in line with the Islamic Shariah-based banking values- the speakers said.
The observation came at a seminar organized on "Islamic Banking in Conventional Banks: Bank Asia Model- A new Dimension" organized by Bank Asia in the city.
"Although, in its early days, Islamic banks in the country adopted the Weightage based ratio for profit distribution, now it is gradually been recognized that the ISR based model provides a better solution for the depositors", M Azizul Huq, the former Chief Executive Officer of Islami Bank Bangladesh Limited (IBBL) and one of the country's top Islamic bankers said on the occasion.
Speakers at a seminar in the city Tuesday asked the country's banks to adopt Income Sharing Ratio (ISR)-based module for distribution of profit to their Mudaraba depositors.
The new ISR based module should gradually come to replace the existing Weightage based framework for distribution of profits as the latest model appears more fair to the depositors and therefore more in line with the Islamic Shariah-based banking values- the speakers said.
The observation came at a seminar organized on "Islamic Banking in Conventional Banks: Bank Asia Model- A new Dimension" organized by Bank Asia in the city.
"Although, in its early days, Islamic banks in the country adopted the Weightage based ratio for profit distribution, now it is gradually been recognized that the ISR based model provides a better solution for the depositors", M Azizul Huq, the former Chief Executive Officer of Islami Bank Bangladesh Limited (IBBL) and one of the country's top Islamic bankers said on the occasion.