Is it permissible to purchase a bank guarantee in exchange for a bank portfolio?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the intent is to issue a bank guarantee based on a portfolio held by the issuer, there is no objection to it, whether the value of the portfolio is less than, equal to, or greater than the guarantee amount. A covered letter of guarantee is considered an agency (wakala), and there has been a detailed exposition on the ruling concerning the permissibility of charging a fee for it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/124284
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 124284
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy