Islamic Bank of Thailand (iBank) practiced Islamic Banking in a legal environment where Syariah Law is not recognized by the courts. To avoid the bank incurring losses due to loans defaults,iBank imposed upon its customers to execute 2 loans agreements,one Shariah Compliant Agreement, and another the normal conventional interest-based agreement.

Discuss the validity and the rationale of this action by the bank

Answer rating: 100% (QA)

ANSWER Since the court does not recognize syariah principles the bank allowed both the loan agreemen... View the full answer