'Characteristics of Islamic Finance and Banking'

'As the orb has recently passed by means of the global fiscal crisis that begun in 2008 in the USA with the banks collapsing, analysts ar giving diverse opinions and making immature stinting hypotheses round the origin of, as substantially as the process of assorted countries escaped from the crisis. Among whole these new theories, the effect of Islāmic banks is questing in terms of its spirit and consequences. In my essay, I will canvas to highlight the grassroots principles of the Islāmic finance, the reasons of the parturiency of interest, the more or less important tools utilize by Muslim banks in economical activities and brief accounting of them, and finally my scene point of the equiprobable future feeler of the Islāmic pecuniary system.\n prototypal of all, let us outline how Moslem banks in truth dress and what their main differences ar in resemblance with stately banks. In this banking system, banks are operated by Islamic laws (know n as Sharia), so Islāmic economic principles are considered as primary guidance. 2 basic doctrines tramp Islamic banking are the sharing of get ahead and loss and, significantly, the prohibition of the collection and hire of interest. and then contrasted conventional mercenary banks, Islamic banks do non invent or channelise interest on add or get of gold. Hence unlike conventional commercial banks, Islamic banks do not pay or charge interest on lending or borrowing of money. This is because the Sharias strictly prohibits, among an another(prenominal)(prenominal) things, the receipt and wages of riba. The interpretations to clarify the meat behind this restriction suggests that earning or charging duplication amount of money from debtor has to be seen something as libertine behavior, because making twinge on your borrower is actually unfair from the stall of Islam. To make it clear, the piety of Islam basically produce the principle of judge in the financi al activities as well as in all other activities of an individual. Therefore... '