What is the ruling on depositing money in an Islamic bank that deals with Mudarabah without specifying the profit, noting that the bank has not recorded any losses?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"The sound Islamic banks are often reassuring due to the presence of a board that supervises their transactions. The fact that an Islamic bank does not incur losses does not make (profit-sharing) prohibited. Specifying the profit in Mudarabah is a condition; the percentage of both the Mudarib (entrepreneur) and the Rab al-Mal (investor) from the profits, not from the capital, must be known. This is the difference between Islamic banks and interest-based banks."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/65416
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- Ftawy
- Original fatwa ID
- 65416
- 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