9.19. Operational risks—musharakah

(1) In a musharakah contract, an Islamic Bank provides financing on the basis of a profitsharing and loss-sharing contract.

(2) An Islamic Bank may fail to carry out adequate due diligence on the customer or the financed venture.

(3) During the period of the investment, an Islamic Bank may fail to monitor the venture’s financial performance adequately or may not receive the required information from the customer.