Islamic Banking Flashcards Preview

Banking Theory and Practice > Islamic Banking > Flashcards

Flashcards in Islamic Banking Deck (3)
Loading flashcards...
1
Q

What is Islamic Banking

What is the most fundamental difference between western and islamic banking

A

Banking in accordance with the beliefs of Islam

The most fundamental of these is the prohibition of interest payment

2
Q

Explain why interest can not be charged

A

Making money from money is strictly prohibited.

Money is not perceived as a commodity and consequently it can not be ‘rented out” for a fee.

Under Islam, bit paying interest and charging interest are forbidden

3
Q

How are the providers of capital to islamic banks given a return

A

df