Sukuk Funds in Islamic Banking

Sukuk Funds in Islamic Banking

Working of┬áSukuk Funds in Islamic Banking Introduction: Sukuk, the Islamic Bonds, are sold in the market to raise funds for a particular project. Funds raised are used to purchase assets therefore they are asset based securities. By the use of those funds, derived benefits or rewards are distributed among Sukuk holders on pro-rata basis. Source of Liquidity to Islamic Banks: Corporates issue Sukuk in order to reduce their reliance on costly funding facilities offered by the banks; Sukuk are also among other few options available to Islamic financial institutions to…

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