Islamic Investment Products
Customers who invest in Islamic financial products would not benefit in the form of interest, but the percentage of profit sharing (ratio) of bank profits from managing clients' money. For example, 55 percent of profits to customers and 45 percent for the bank.
Customers who invest in Islamic financial products would not benefit in the form of interest, but the percentage of profit sharing (ratio) of bank profits from managing clients' money. For example, 55 percent of profits to customers and 45 percent for the bank.
However, the profit-sharing system, although the ratio agreed upon from the beginning, the customer and the bank can not know for sure that the result will be acceptable to both sides, before the results of operations of the bank's profits are known at the end of the given period. Unlike the system of interest, where customers know the results to be obtained from the start-in the form of a percentage interest of the money which he investment-whatever profits or losses of the business of the bank. However, the profit-sharing system, the customer and the bank share profits more fairly, the customer gains could be larger than the system of interest.
BY: TRI
AYU RIWAYANI (11220035)
