Weightages and its application in Islamic Banking

Abstract

Islamic Banks in Pakistan accepts profit and loss sharing
deposits on the basis of Mudarabah, one of the most important
provisions of Mudarabah contract is distribution of profit
according to pre-agreed ratio between Mudarib and rab-ul-maal.
Presently the mechanism for profit distribution among investment
account holders (after deduction of banks share as Mudarib)
adopted by Islamic Banks is based on the weightage and scoring
method. In this paper the scoring method is examined from
sharia view point, regulatory requirement is discussed and
present practice of banks is elaborated, in the end
recommendation has been given regarding the method.