Islamic Acceptance Bill
ISB 547
(Islamic Banking & Financial Services)
Islamic Acceptance Bills
Introduction Islamic Acceptance Bill is one of the Islamic financial instruments that are traded in Islamic Inter-bank Money Market. Islamic Acceptance Bills are traded based on Murabahah and Bay’ al Dayn concept similar to the other financial instruments such as Islamic mortgage bond and Islamic private debt securities. The Inter-bank Money Market, in turn, is the place where a set of activities are carried out including purchase and sale of Islamic financial instruments among market participants, inter-bank investment activities and a cheque clearing and settlement. Islamic Accepted Bills arises from the situation when the customer on behalf of a bank buys goods that he or she want while the bank sells them back to the customer at a deferred payment basis. The bank makes payment in lump sum for the goods purchased by its customer on its behalf and sell those goods to the customer on the deferred payment basis. These due payments represent profit for the holders of the Islamic Acceptance Bills that are traded in the secondary market. Islamic Acceptance Bills are mostly used to finance imports and export or local purchases and sales, provided that the traded goods are halal.
Understanding Islamic Acceptance Bills. Islamic Accepted Bills is one of the instruments traded on Islamic Inter-bank Money Market and based on the concept of Al-Murabahah and Bay’ al-Dayn. Islamic Accepted bills is an order to a bank by its customer obliging it to pay a certain amount of money to the holder of the acceptance bill. The bank makes payment in lump sum for the goods purchased by its customer on its behalf and sells those goods to the customer on deferred payment basis. These due payments represent profit for the holder of the Islamic Accepted Bils that are traded in the secondary market to another party. It attract a very attractive price
(Islamic Banking & Financial Services)
Islamic Acceptance Bills
Introduction Islamic Acceptance Bill is one of the Islamic financial instruments that are traded in Islamic Inter-bank Money Market. Islamic Acceptance Bills are traded based on Murabahah and Bay’ al Dayn concept similar to the other financial instruments such as Islamic mortgage bond and Islamic private debt securities. The Inter-bank Money Market, in turn, is the place where a set of activities are carried out including purchase and sale of Islamic financial instruments among market participants, inter-bank investment activities and a cheque clearing and settlement. Islamic Accepted Bills arises from the situation when the customer on behalf of a bank buys goods that he or she want while the bank sells them back to the customer at a deferred payment basis. The bank makes payment in lump sum for the goods purchased by its customer on its behalf and sell those goods to the customer on the deferred payment basis. These due payments represent profit for the holders of the Islamic Acceptance Bills that are traded in the secondary market. Islamic Acceptance Bills are mostly used to finance imports and export or local purchases and sales, provided that the traded goods are halal.
Understanding Islamic Acceptance Bills. Islamic Accepted Bills is one of the instruments traded on Islamic Inter-bank Money Market and based on the concept of Al-Murabahah and Bay’ al-Dayn. Islamic Accepted bills is an order to a bank by its customer obliging it to pay a certain amount of money to the holder of the acceptance bill. The bank makes payment in lump sum for the goods purchased by its customer on its behalf and sells those goods to the customer on deferred payment basis. These due payments represent profit for the holder of the Islamic Accepted Bils that are traded in the secondary market to another party. It attract a very attractive price