Evaluate the requirements for a valid bai by qard hassan

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Reference no: EM132966066

Liquidity management in Islamic banks can also be done through securitization of the pool of income generating assets. If the bank requires liquidity it may sell Assets in the secondary market to another bank to generate cash. If it is in surplus, it can purchase Assets from the market.

Analyse whether the case has met all the requirements of valid purchase Assets from market.

Problem 1: Evaluate the requirements for a valid Bai by Qard Hassan using the criteria of completeness and legality.

Problem 2: Discuss the procedures involving in between bank & client under Qard Hassan transactions?

Problem 3: In Qard Hassan transactions, should the promise be unilateral or bilateral, binding or non-binding? Discuss your answers.

Problem 4: What rules that should be follow to change the above contract to Musharka contract?

Problem 5: Discuss the potential risks in the executing of Murabaha contract.

Problem 6: According to the current accounts may be describe d is with the use of Qard Hasan. Discuss why the deposit by the customer is seen as an interest free loan given to the bank. The account bears no profit for the customer.

Problem 7: According to the Wadiah account, the bank may utilize the funds at its own risk. Any benefit to the lender under this mechanism is seen as riba and against the spirit of the qard account. Demonstrate the risk involved in this scenario using market integrity.

Reference no: EM132966066

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