Case study

Mohammed needs money in order to buy a latest Villa. The cost of building the Villa is BHD 75,000. His wife, Mariam, has savings up to BHD 20,000 and needs additional financing of BHD 55,000. Mohammed knows that he can always borrow from any bank in Bahrain but he wants a Shariah compliant financing. And he aware about the basic conditions for the validity of sale is that the commodity must be in existence, seller must own commodity and the seller must have physical possession of commodity and Mohamed is not aware about the exceptional product in Islamic Banking so Mohammed seeks your advice on a number of issues before he can make his decision on which financing best suit his needs i.e

b. How would you categorize the bankcustomer relationship in conventional bank loan and Murabaha?