Agency-based contract for investments

https://islamicmarkets.com/index.php/dictionary/a/agency-based-contract-for-investments
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Dictionary term

Definition of "Agency-based contract for investments"

Relating to Islamic banks, refers to investment contracts where the investment account holders appoint the Islamic bank as agent for investing their funds for a specified fee and share of profit if it exceeds a certain level, the latter being an incentive for the Islamic bank to achieve a return higher than expected.


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