In Mudarabah, only the Rabb-ul-Maal bears all the financial losses as the sole financial investor. If an Islamic bank enters into a Mudarabah contract as a Rabb-ul-Maal, only the Islamic bank would have to bear all the losses.  Disparity in payoffs if loss occurs in Mudarabah is one of the major reasons why Mudarabah is hardly used as a mode of finance in corporate financing.