Accountancy Forum

Dear All,

1- What is KIBOR?
2- If it is Haram, so why are Islamic banks charging KIBOR differences to their leasing cutomers and calculating profit on the basis of KIBOR?

Plz guide and help urgently,

Regards
Shirazi

Kibor is interbank borrowing rate....its index/benchmark against which every one base their prices...
so to stay competitive the islamic banks also follow it determine their pricing n stuff..
ideally they should not be based on this and should have some independent criteria to determine their pricing n operations......but as of now...they are stuck with it......i myself don't see islamic banking as being islamic untill they find an altternative to KIBOR based pricing.