In Islamic banking, a profit and loss contract when financing a project. The bank and its customer jointly acquire ownership of the project according to the capital contributions made. Any losses are usually also borne in proportion to the respective capital shares (a partnership between a financial institution and a company under which both the financial institution and the company invest in the project. The financial institution and its partner share the profits and the losses on the basis of pre-agreed ratios. This is very similar to the way industrial and financial players pool their resources in order to launch new ventures). – See Ijara, Istisna, Mudaraba, Murabaha, Qard al-Hasan, Salam, Sukuk.
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