Essay Palace on Islamic Banking

Essay Palace on Islamic Banking

Islamic Banking

Islamic banking signifies a composition of banking that is consistent with the doctrine advocated by the Sharia law. The Sharia law concerns Islamic rulings that are suggested in the Quran, the sacred text of the Muslims. In Islamic banking, these rules and regulations are applied practically in the development of Islamic economics (Chapra 1985). The doctrines, which accentuate honourable and fair play, are venerated throughout the world. Shariah forbids the imbursement or reception of interest, (riba), for the giving and accepting of cash. It also prohibits the act of trading in goods and services that go against its main beliefs. Most of these values were used as the basis for the creation of thriving economies in bygone eras. In the late 20th century, the authorities who deeply believed in this method of doing things came together to provide a different method of banking for conservative Muslims. However, this mode of banking is not restricted only to Muslims. Non-Muslims are welcome to use it if they so desire.

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