Regulatory Alerts2020-09-07
Islamic Banking and Financial Terminology Guide 2020
The Central Bank of Iraq’s Banking Supervision Department, Islamic Banks Division, issued the 2020 Islamic Banking and Financial Terminology Guide to standardize definitions across Murabaha, Ijarah, Musharaka, and Mudaraba contracts. The document mandates precise classification of transaction types, profit-sharing ratios, risk allocation mechanisms, and ownership transfer methods to ensure Sharia compliance and operational consistency. It establishes binding definitions for financial obligations, facility structures, and asset management practices that Islamic banks must apply in customer financing and investment operations.
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