What is the ruling on dealing with Islamic banks if the contract is based on profit and loss, and does the ruling differ if the agreement is based solely on variable profit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Dealing with Islamic banks: If the contract is , the capital must not be guaranteed because it is subject to profit and loss. Guaranteeing it transforms it into a forbidden loan. However, if the contract is to the buyer, it is not permissible to increase the debt in exchange for extending the period after the debt has been settled. The criterion for what is permissible and forbidden is not the abundance of return, but rather the command of Allah Almighty.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/78424
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- Ftawy
- Original fatwa ID
- 78424
- 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