Promising discernibility of tawarruq deposit product
September 18, 2017 | Updated at October 25, 2017
Promising discernibility of tawarruq deposit product
By Dr Hanudin Amin
Tawarruq is a two sale and purchase contracts. The first sale consists of the sale of an article by a seller to a buyer on a deferred basis. The second sale occurs as the buyer of the first sale resells the same article to a third party for liquidity purposes.
One of the significant products emanated from tawarruq is deposit product. The deposit product is of two types. One is a transaction that involves a transfer of funds to another party for safekeeping while second is a portion of funds that is employed as security or collateral for the delivery of an article. The focus, however, is the former. Like many banks, Bank Muamalat Ma...