An inter-bank/inter-institutional financial network formulated in accordance with the principles of the present invention supports the implementation of certain Shari'ah (Islamic) compliant financial products. A standardized, Shari'ah (Islamic) compliant financial instrument is created which is conducive to trading and which has comparable characteristics to those traded on the conventional markets. An inter-bank/inter-institutional financial alliance is formed under which the participants in the network play multiple and varied financial roles in select financial offerings prior to taking an investment offering to the Islamic investment marketplace for placement. In particular, each participating institution in the inter-bank/inter-institutional financial alliance agrees to support the position of another participating institution as may be required under a contingent guarantee of repurchase in support of such other participating financial institution's issuance of financial instruments. Further, the guarantee is agreed for issuance within a Shari'ah compliant operational framework which does not allow for the acceptance of consideration or specific security/collateral against the issuance of a guarantee, thus enabling the deployment of a financial mechanism having a financial impact similar to a conventional securitization or financial enhancement that would otherwise be disallowed under Shari'ah financial guidelines. Thus, when the financial instrument is issued, it is underwritten for repurchase via a syndication amongst the inter-bank/inter-institutional financial participants via their respective issuance of their repurchase guarantee which are callable on a contingent basis. The issuer also acts as repurchase guarantor on a contingent basis on behalf of another bank in the inter-bank alliance as issuer of their respective financial instruments.
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