Commercial profit on capital is linked with bearing business risk. Expertise and diversification may reduce that risk, but cannot eliminate it completely. Partnership financing rejects the idea that money must earn a fixed return regardless of the actual outcome of trade and industry.
For banking practice, the rule must also be workable in accounting and monitoring. The aim is to preserve genuine risk-sharing while using a method that can be audited and applied consistently.
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Partnership Financing (مشاركة): Practical Objections
Commercial profit on capital is linked with bearing business risk. Expertise and diversification may reduce that risk, but cannot eliminate it completely. Partnership financing rejects the idea that money must earn a fixed return regardless of the actual outcome of trade and industry.
For banking practice, the rule must also be workable in accounting and monitoring. The aim is to preserve genuine risk-sharing while using a method that can be audited and applied consistently.