Mudarabah

In a mudarabah one party provides capital and the other provides management. Profits are shared by an agreed ratio and losses fall on the capital provider unless the manager was negligent. AAOIFI covers it in Shariah Standard No. 13. It touches cards directly at AAOIFI Shariah Standard No. 2 clause 3/2/2: where a charge card issuer requires a security deposit that the cardholder cannot use, the standard requires that the money be invested for the cardholder's benefit on a mudarabah basis with profit shared, so that the deposit is not a free benefit to the bank.