BANKING AFFAIRS

Detailed explanation-1: -The sources of funds of an Islamic bank include deposits in various accounts and deposits in special investment accounts that are earmarked for bor-rowing by corporate investors to fund specific projects. Shareholder funds are also a source of funds for Islamic banks.

Detailed explanation-2: -There are basically two principal sources of funds, namely work capital of shareholders and customer deposits. A separate accounting system is adopted for a dual window banking operation, which separates all Islamic bank funds from conventional banking and to avoid the arrival of funds.

Detailed explanation-3: -Joint or general investment deposits are funds received by Islamic banks from customers who wish to participate in the banks’ financing or investing activities in an organized and continuous manner, without any conditions being imposed on the banks.