What is mudhaarabah which the Islamic banks offer?

Answer

Mudhaarabah is a partnership in which the one partner provides the capital investment and the other partner provides the management without any capital investment. The profit will be shared according to the mutual agreement of the parties. It may be any ratio. While banks purport to conduct this type of partnership, they are dishonest. Their ventures are riba transaction which they camouflage with Islamic terminology.