Features of independent (banking) guarantees as one of the islamic banking products

Abstract

Several principles of financial institutions used in Islamic banks have recently been approved by the Sharia Supervisory Board. One of these tools is an independent bank guarantee. An analysis of sureties in Muslim law is given in this article. The conditions of the Sharia law on guarantees are defined. The article considers the grounds that prohibit an Islamic Bank from becoming a guarantor and taking a Commission for providing this service. It is  claimed that kafala (as an Islamic contract) is a guarantee of the safety of funds or property, which is given by the  Bank to the owner when transferring or depositing his property from a third party. If the client has any property claims, and the third party does not fulfill its obligations, then the guarantor, i.e. the Bank, assumes all responsibility for resolving the problem.