Islamic Banking
Finance model adhering to Shariah principles, prohibiting interest and speculation.
Detailed Description
Islamic Banking
What is the primary prohibition in Islamic banking?
The primary prohibition in Islamic banking is riba, or interest.
What are Mudarabah and Musharakah?
Mudarabah is a partnership where one party provides capital and the other manages the investment, while Musharakah is a joint venture where all partners contribute capital and share profits and losses.
How do Islamic savings accounts differ from conventional savings accounts?
Islamic savings accounts offer profit-sharing options instead of interest, rewarding depositors based on the bank's profitability.
What role do Sharia boards play in Islamic banking?
Sharia boards consist of scholars who interpret Islamic law and ensure that banking practices align with Sharia principles.
What future trends are influencing Islamic banking?
Future trends include the integration of fintech, a focus on sustainability, and increased awareness of Islamic finance principles beyond Muslim-majority countries.