Islamic Banking

Islamic banking is a system of banking that is consistent with Islamic Sharia law. In particular, it prohibits usury—the collection and payment of interest—and investment in businesses considered unlawful. In the late 20th century, a number of Islamic banks were created to cater to the needs of the Muslim banking market. These institutions rely on the common Islamic concepts of profit sharing, safekeeping, joint venture, and leasing. How are these banks able to operate without charging interest? Discuss

Source: The Free Dictionary

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