Business day
A day on which banks, markets or payment systems in a given place are open; the unit for due dates and settlement.
A business day is a day on which the relevant banks, markets or payment systems are open, as defined by the contract, the market or the system's rulebook. Weekends differ across Islamic-finance markets, with some observing Friday and Saturday and others Saturday and Sunday, and public holidays include Hijri-dated holidays whose exact dates may be confirmed late. Cross-border deals therefore need to state which calendars determine a business day.
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Weekend conventionWhich days count as the weekend in a market; it varies across Islamic-finance markets and drives settlement and due dates.Value dateThe date on which a payment or transfer is due to take effect and funds become available to the receiver.T+n settlementSettlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later.Moon sightingObserving the new crescent moon to determine the start of a Hijri month; it decides the dates of Ramadan and the Eid holidays.