Bayʿ and salaf in bank guarantee-i structure
| Contract | Explanation |
|---|---|
| Salaf | Payment by the bank to the beneficiary as agreed by the customer and the bank. Relationship between the bank and customer in salaf Bank: Lender Customer: Borrower |
| Bayʿ | Fee paid by the customer to the bank for providing the guarantee regardless of payment made by the bank to the beneficiary or otherwise. Relationship between the bank and customer in bayʿ Bank: Seller Customer: Buyer |
| Contract | Explanation |
|---|---|
| Salaf | Payment by the bank to the beneficiary as agreed by the customer and the bank. |
| Bayʿ | Fee paid by the customer to the bank for providing the guarantee regardless of payment made by the bank to the beneficiary or otherwise. |