Is it permissible to take money from an Islamic bank if it profits, with a guarantee of capital recovery in case of loss through a reconciliation agreement?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A contract that includes a condition guaranteeing the capital is impermissible. The fact that the bank voluntarily guarantees the capital in case of loss, under what it calls a "reconciliation contract," does not make the contract permissible as long as this condition is stipulated within 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/173572
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 173572
- 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