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Suppose Baraka Bank, a multinational bank (MNB) located in Bahrain has BD20 million surplus funds and plans to generate some return by offering this fund
Suppose Baraka Bank, a multinational bank (MNB) located in Bahrain has BD20 million surplus funds and plans to generate some return by offering this fund in interbank market bahrain on mudaraba based financing . suppose, ithmaar bank needs simliar amounts of funds for the same tenure
1- both parties agree on 60:40 mudaraba profit sharing ratio in favor of al baraka bank
2- suppose ithmaarn bank declares profits of 4% per annum before distribution
3- the tenure of this transaction is 30 days
(question)
how much profits al baraka will receive ?
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