The Ruling on Mudarabah and Islamic Murabahah in Banks

Question:
What is the ruling on Islamic murabahah (a cost-plus sale) at the bank for Muslims, where the bank purchases the item and extends it, then sells it? Please inform us about this, as I am about to buy a car from them. Is the second option not the same as the National Bank or the National Bank of Egypt?

Answer:
The point is that they say, “We will do whatever we want, for a purpose we do not know about.” If the meaning is that they take your money and sell and buy in what Allah has permitted, with a share of the profit shared between you and them, then this is the blessed arrangement. They receive the money and sell and buy in lawful goods in the prescribed manner, and you become partners in the profit. There is nothing wrong with this; this is mudarabah. However, if it is a riba-based bank, it is not Islamic mudarabah, nor is it Islamic mudarabah; it is bank murabahah. They call it Islamic, as if they greeted the people.