Statement of Financial Position as at 31 December 2018 Group Bank 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017 Liabilities and eculty Note RM"000 RMODO RM 000 RM000 17 49.895.232 46.209.628 49,909,199 5.176,819 18 46.192.910 4.250.185 74668 5.176,819 19.520 4250,165 7 19.520 74568 41,114 420258 41,114 420 255 Deposits from customers Investment accounts of customers Derivative financial liabilities Bills and acceptance payable Resource obligations on financing sold to Cagamas Subordinated Sukuk Murabahah Other liabilities Zakat and taxation Total abilities 19 1,501, 187 1,501,102 20 1,308,634 1,006 486 782.299 21 695,714 1,308,634 706, 133 13,687 58,562, 126 1006436 773769 46,340 S2230234 22 46.404 13.539 58.665,726 Figure 1: Liabilities of an Islamic Bank 3.1 Deposits from Customers 3.1.1 Nature and Definition Deposits from customers constitute a dominant part of the liabilities of an Islamic bank. Under FSA 2013, customers have a choice of placing their funds as deposits or as investments. If the customer puts his funds in an Islamic Bank as an Islamic deposit, then up to RM250,000 of the principal amount would be covered under the deposit insurance scheme of Perbadanan Insurans Deposit Malaysia (PIDM) Such funds have no restrictions on its withdrawals and accordingly, a customer has that flexibility to withdraw his funds as and when he wishes. BNM defines an islamic deposit as a sum of money accepted or paid accordance with Shariah, i on terms under which it will be repaid in full, with or without any gains, return or any other consideration in money or money's worth either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and person accepting it or ii. under an arrangement on terms whereby the proceeds under the arrangement to be paid to the person paying the sum of money shall not be less than such sum of money, Simply put, such deposits are repayable in full(ie the principal is guaranteedand that the returns are subject to the terms of the contract. Additionally, repayment can be affected on demand or at maturity. Topic: Balance Sheet of an Islamic Bank Exercise 1 Name: Reg. Number: Above is the Liabilities and Owners equity side of the Balance Sheet of an Islamic Bank. The first item given is the "Deposits from customers. For the conventional banks, these "Deposits from customers include funds deposited by customers in three types of accounts: 1) Current Account: ) Savings Account, and ill) Fixed Term Deposits. You need to find the alternative accounts used by Islamic banks to replace the above three accounts and explain how they differ from each other
