IBANK 8.2.3 Liquidity risks — commodity murabahah

(1) An Islamic banking business firm may offer commodity murabahah accounts as a means of raising funds. Because raising funds in this way requires the firm to pay back the principal and agreed share of profit to the customer on maturity, the firm may be exposed to liquidity risk.
(2) If commodity-murabahah-based funds (which are usually short-term in nature) are used by the firm to finance longer-term assets, a maturity mismatch will result. Such a mismatch may become acute if the firm has a high reliance on such deposits to fund its assets.
Inserted by QFCRA RM/2018-2 (as from 1st May 2018).