Noriba Bank's sharia innovations

Sharia

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The basic principles behind Islamic banking concern its shunning of interest, or 'riba', and the equitable distribution of income and wealth. This makes most traditional option-based payoff structures impermissible under Islamic law.

However, in December 2003 Bahrain-based Noriba Bank developed a CPPI structure based on the traditional principle of Murabaha (see below) to create a product called RaMI (range Murabaha investments), linked to gold and a selection of currencies offering 100% ca

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