Examples of Islamic deposit in a sentence
This risk refers to the effect of profit/interest rate changes on the market value of Islamic money market instruments, Islamic deposit placements and sukuk.
Although the Fund does not invest in interest bearing instruments, the movement of the interest rate will have an impact on the profit rate of the Islamic money market instruments and Islamic deposit placement, and consequently affect the expected return of the Fund’s investments.
The sources of Islamic banks and their uses of these funds have been investigated in a number of studies, particularly Abdul-Gafoor (2003), Alam (2000) and Haron (1995).The three main types of Islamic deposit accounts are as follows.
This risk refers to the effect of interest rate changes on the market value of Islamic money market instruments, Islamic deposit placements and sukuk.
Any downward movement of the profit/interest rate may result in a loss of the expected return from the Fund’s investments in Islamic money market instrument and Islamic deposit placement.
Although the Fund does not invest in interest bearing instruments, the movement of the interest rate will have an impact on the profit rate of the Islamic money market instruments and Islamic deposit placement, and consequently affect the expected return of the Fund‟s investments.
Profit income from Islamic deposit with licensed financial institution and unquoted sukuk are recognised using the effective profit rate method on an accrual basis.
Any downward movement of the profit/interest rate may result in a loss of the expected return from the Fund‟s investments in Islamic money market instrument and Islamic deposit placement.
Annex 7.4 of the 2019 edition of the Financial Soundness Indicators Compilation Guide6 published by the IMF describes the business model of Islamic deposit takers (IDTs) and how their financial instruments differ from conventional ones.
The funds for conventional and Islamic deposits are separately administered with the Islamic deposit insurance fund administered in accordance with Shariah principles.