Parallel istisna
A second, independent istisna in which a bank that has agreed to deliver an asset orders it from a manufacturer or contractor.
Parallel istisna is a second istisna contract that a bank concludes, as buyer, with a manufacturer or contractor to obtain an asset it has agreed to deliver, as seller, under a first istisna with its customer. AAOIFI's istisna standard covers both contracts, and Bank Negara Malaysia's istisna policy document treats the parallel arrangement as permissible on condition that each contract stands on its own. The bank stays liable to its customer even if the contractor fails, so the two contracts need separate obligations, timelines and records.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.