When a bank loses money through bad financing, lending too much to a few connected borrowers, or fails to recover even normal loans, someone has to bear that loss. And, as per the mudarabah principle, customers would primarily bear that loss, with a few exceptions.

Islami Bank has started to avail a central bank facility that is only summoned during extraordinary circumstances, as the Shariah-based lender looked to dress up its balance sheet ahead of the year’s end.