o Profit Equalization Reserve: - is a fund left from Net Income of the pool during periods when the profit to be paid to customers are above market price, which helps to smoothen the regular profit payment to the depositors. In other words, the PER used to improve the returns to the depositors during periods when the pool’s [profits are below market expectations.
Prices shall be determined based on the supply (deposit) and demand (finance), thus the profit payable shall also vary accordingly
o Investment Risk Reserve: - the pool may incur losses primarily due to unusually large write-offs and/or losses on sale of the pool’s investments or financing different products. To absorb or off-set the losses the Banks may create the investment Risk Reserve (IRR) to cover the future investment losses.
o Cash holding
o IFB Special Account
The distribution of profit or loss on Mudaraba Saving Account or Mudaraba Deposit Account is depend on the profit or loss involved in financing product or investment. Profits are distributed after the bank has collected commission income and other similar incomes for the service of financing.