معلومات مقرر دراسي

DIFFERENCE BETWEEN ISLAMIC BANKING AND CONVENTIONAL BANKING

Let us first understand the major difference between Islamic banking and conventional banking system. “Islamic banking is an Ethical Banking System, and its practices are based on Islamic (Shariah) laws. Interest in completely prohibited in Islamic banking. It is asset based financing, in which trade of elements prohibited by Islam are not allowed. For example, you cannot take a loan for a Wine Shop. On the other hand, Conventional Banking is an Un-Ethical Banking system based on Man-Made Laws. It is profit-oriented and its purpose is to make money through interest”.