Internship course (report) Essay Example | Topics and Well Written Essays - 1000 words

Internship course (report) - Essay Example I learnt about the Murabaha where the bank sells an asset at a pre agreed cost and profit after purchasing an item either will full payment or on a deferred basis. The bank benefits from the profit earned and the seller of the property also benefits since the selling takes place in a shorter time. Another product of the bank is the good Murabaha and the vehicle Murabaha whereby the bank takes responsibility of selling goods or a vehicle at an agreed cost with the seller who is a client of the bank. Immediately after the sale takes place, the bank deducts their agreed profit% and gives the rest amount to the seller(Hammonds, 2007). I learnt about the letter of credit (L/C) which is a method of payment whereby the two parties have ample protection. The bank writes to an exporter on behalf of an importer who is their client and it verifies and guarantees payment. The bank also offers financial protection to its customers through construction surety bonds such as bid bonds and performance bonds. Through these finical protections, the client of the bank is able to evaluate a construction company. Surety and bid bonds have a slight difference but in both, the construction company agrees to pay the bank a certain amount which the client is given in case the contractor fails to complete the project. The bank also offers payment guarantee as a service to their customers and return they charge a pre-agreed % on the recovered debt. The client of the bank, who in such a case is the person demanding payment, approaches the bank and provides details of the debt agreement with the debtor and leaves the task of demanding the payment to the bank. The bank also offers a service called Mudaraba which is basically an agreement between the bank and their client. In this service, the bank provides finance for a certain project which is proposed by the client who in turn provides the technical knowhow of carrying out the venture. The venture must be