The current account is considered as a loan because the bank has to guarantee its repayment on demand. In this regard the International Islamic Fiqh Academy issued its resolution No. 86 (9/3) which stipulates that “Demand deposits (current accounts) whether in Islamic or traditional banks are loans in the strict Shariah sense. The receiving bank holds such deposits under guarantee and is committed by Shariah to repay them on demand. The fact that the receiving bank is solvent does not affect this ruling”. 

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