Islamic Financial Intermediation and Banking 157
TABLE 8.4 Sources and application of funds
Sources (liabilities and equity) Application (assets)
Equity capital and shareholders’
reserves
Short - term trade fi nance (murabahah,
salam)Demand and safekeeping deposits
(amanah)
Regulatory cash-reserve requirement
Medium - term investment (ijarah, istisna’)Investment accounts (mudarabah)
“pass - through”
Long - term partnerships (musharakah)Special investment accounts
(mudarabah, musharakah)
Fee - based services (jo’alah, kifala, and so
forth)Source: van Greuning and Iqbal (2008)
TABLE 8.3 Major assets on fi nancial statements
Assets
i. Cash and its Equivalents
Cash in vaults
Cash with central bank
Balances with banks and other institutions
Cash equivalents
ii. Financing using Islamic Modes
Qard - ul - hassan
Murabahah and deferred sales
Leasing and hire purchase
Mudarabah
Musharakah
Salam
Istisna’
Others
Less provisions
iii. Portfolio Investments
Investment in companies, funds, shares
Investment in Shari’ah - compliant bonds, bills, securities
Investment in properties and real estate
Other investments
Less provisions
Other Assets
Prepaid expenses and other receivables (net)
Real estate and properties owned (net)
Fixed assets net of depreciation
Other assets (net)