ICD (Islamic Certificates of Deposit)

Definition of "ICD (Islamic Certificates of Deposit)"

A financial instrument developed by Islamic banks to mobilize savings. The certificates are issued for different denominations and for different maturities. The Islamic banks act as mudarib for collecting these funds and have the right to invest them on any project they deem fit. The rates of profit and loss sharing are determined at the time of issue. The banks also announced to repurchase the certificates at any time after the sale of the certificates. The banks announced the repurchase price periodically.