Islamic finance from conventional source

Everyday Islamic Finance Business and Career Questions
#1

Salaam,

If an Islamic finance institution borrows capital from a conventional bank and then uses this capital (with a markup) to offer housing finance to a Muslim, is it halal for the Muslim to take a contract (ijarah) with the Islamic institution?

The main question, is whether it is halal for an Islamic bank to use a conventional bank’s capital to then issue its own Islamic finance contracts?

JazakAllah for any help.

#2

Wa alaykum salaam,

If the contract between the conventional bank and Islamic bank is Shariah compliant, then it is acceptable.

However, the Shariah board of any Islamic Bank are the best people to contact to confirm the compliance in such instances.

Allah knows best