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Title: |
2-Step Murabaha as an alternative resource mobilisation tool for Islamic banks in the context of international trade |
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Author: |
Ahmet Suayb Gundogdu 
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Address: |
International Islamic Trade Finance Corporation, IDB, P.O. Box 5925 Jeddah 21432, Saudi Arabia |
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Journal: |
International Journal of Monetary Economics and Finance 2009 - Vol. 2, No.3/4 pp. 286 - 301 |
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Abstract: |
This paper aims to show how to mobilise resources through Islamic financial instruments in the context of international trade. Throughout the paper there would be five entities namely, Bank-A, Bank-B, Bank-C, Importer and Exporter. Bank-A and Bank-B are recognised financial institutions and they operate internationally while the operations of Bank-C are limited to domestic market. It is Bank-B which mobilises resources from Bank-A through Mudaraba and alternative Reverse 2-Step Murabaha agreements. The details of disbursement for line of financing provided by Bank-B to Local Bank-C through 2-Step Murabaha Agreement are also provided for Letter of Credit and Documentary Collection settlements. |
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Keywords: |
Mudaraba; resource mobilisation; Islamic banking; documentary collection; Islamic finance; international trade. |
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DOI: |
10.1504/IJMEF.2009.029064 |
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