Islamic Banking 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
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