The source argues that large borrowers may use depositors' money in profitable projects while depositors receive only a small fixed return. The borrower can also add financing cost into product prices and pass that burden toward consumers.
In severe losses, depositors may still bear wider consequences through bank failure. This is presented as producing imbalance in wealth distribution.
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Islamic Banking: The Core Philosophy and the Musharakah Gap
The source argues that large borrowers may use depositors' money in profitable projects while depositors receive only a small fixed return. The borrower can also add financing cost into product prices and pass that burden toward consumers.
In severe losses, depositors may still bear wider consequences through bank failure. This is presented as producing imbalance in wealth distribution.