Any loss in Mudarabah

Q 1: Is it permissible for Muslims to buy shares or deposit their money in banks that do not deal with Riba (usury/ interest)? Is it permissible in this case that the deposit be for a fixed term along with delegating the bank to invest it in different transactions that are subject to profit and loss, provided that the deposit owner shares in the profit or loss?

A: Yes, it is permissible for them to buy shares in banks that do not deal with Riba, and to place deposits in this bank for there is no Islamically lawful prohibition in this. It is also permissible for them to allow the bank to invest their deposited money in any transactions that are free of Riba and any other prohibited forms of sale, provided that they are subject to profit and loss according to Islamic standards.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.