Abstract
This narrative study reports and analyses depoisits pool
management in Pakistan, which is an important fund raising instrument
used by Islamic banks. The study expamplifies and discusses a complete
process starting with the account opening, and its placement in the banks
balancesheet, followed by the common pool creation process. It also
discusses the role of bank as investor, in addition to a pool manager, and
distributation of profits between the the bank and the pool and then among
various investers within the pool using the daily average product and the
weightages mechanism. Profit Equalization Reserve (PER) and investment
Risk Reserve (IRR) are discussed in the context of their respective Shar¯i‘ah
basis, to develop an overall understanding of term deposit receipts of Islamic
Banks.
Umar Saeed, Muhammad Ismail, Gohar Saleem Parvaiz. (2018) Deposits Pool Management in Islamic Banks in Pakistan: A Case of Term Deposit Receipts (TDRs), Journal of Islamic Business and Management, Volume 8, Issue S.
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