MII refers to a mechanism whereby a deficit Islamic banking institution (investee bank) can obtain investment from a surplus Islamic banking institution (investor bank), based on mudharabah (profit-sharing). The period of investment is from overnight to 12 months. The prevailing ‘R’ Rate of the accepting Islamic inter-bank counterparty will be applied to determine the PSR once the transaction is done at a particular quoted rate.

The PSR ratio is negotiable among both parties. The principal invested shall be repaid at the end of the period, together with a share of the profit arising from the use of the fund by the investee bank. Minimum amount of investment is RM 50k while standard amount of investment is RM 5 million.