Investment deposits and methods of protecting them from murabaha financing risks In the Algerian Al Baraka Bank

Abstract

Islamic banks face many risks associated with their financing formulas, including financing in the form of murabahah, which calls for the bank's management to take appropriate measures to avoid losing investment deposits designated for that.

This paper is concerned with monitoring the methods used by Al Baraka Bank of Algeria to protect investment deposits from the risks of financing clients in the form of murabahah, and to follow and discuss what is consistent with and contrary to Islamic law, through the terms of the contract document approved by the bank's management.