IBANK 8.2.6 Liquidity risks — mudarabah and musharakah

In a mudarabah or musharakah contract, an Islamic banking business firm may be exposed to liquidity risk because of:

(a) late payment or non-payment of profit payments during the contract; or
(b) non-payment by the customer of the remaining principal at the end of the contract.
Inserted by QFCRA RM/2018-2 (as from 1st May 2018).