1.

Reduction in financing costs:

Developing an efficient and effective cost reduction strategy implies the inclusion
of all continuous monitoring, costs and adjustment of the technical, organizational, legal
and financial aspects. Creating new financial instruments such that the number of practical
steps at bank level is reduced to bare minimum required by the Shari’ah. All parties
involved with mode of financing need to divide their resources in order to make it more
profitable and cost-efficient.

2. Islamic finance transactions are being bench-marked with prevailing interest rates in
the country:
Islamic finance deals should be benched-marked with the expected or future price
of those specific elements involved during the deal be finalized. Deal needs to be handling
real products using existing interest rates.

3. Monitory of all loan contracts:

The loan contracts are religiously being signed between banks and the borrowers,
but there are no properly executed agreements between the banks and its depositors. All
the latter signs-off, the account opening form and get deposit slips. There should be proper
Shariah compliment contracts between depositors and banks properly spelling-out terms &
conditions under which the funds are being solicited by banks and what would be banks
responsibilities. So that depositors may also safeguard their interests.

4. Loan Extension:
Banks extend loans or similar credit facilities to borrowers. Whereas in Islam; debt
is not permissible, as money making option. In Islam the concept of debt is only for
financially weak people. Bank contribution towards a borrower should be in the shape of
equity or under a fund management scheme.