Disclaimer: This work has been submitted by a student.
This is not an example of the work produced by our Literature Review Service.
They borrow in the form of deposits and lend this money to earn interest.
In contrary, Islamic banking system is based on the principle of partnership.
Islamic banking having distinct modes of operations as compared to conventional banks has been started in the 1970s to address the problem of Riba.
The committed and resourceful individuals, professional bankers, Islamic economists and religious scholars are attributed to be pioneer of Islamic banking.These standards are not new but rather their unique state has been changed throughout the hundreds of years.The history of banking in Islam goes back to the earliest reference point of Islam in the 7th century.In Islamic banking, the shareholders, the depositors and the borrowers-all would participate on profit-loss sharing basis.Here you will get the complete information about what is Islamic banking and is it really Islamic?There is consensus among the Shariah scholars that credit price of a commodity can genuinely be more than its cash price.The Islamic Fiqh Academy of OIC and Sharia Boards of all Islamic banks, approve the legality of this difference.What I find impressive is that its training incorporate both theoretical and practical examples.I highly recommend this institute to anyone who wants to secure a professional career.This implies if a bank credits cash to a business, the business pays back the advance without premium, yet it gives the bank an offer in its benefits.In the event that the business defaults on the advance or do not win any benefits, the bank does not get any benefit either.