'Characteristics of Islamic Finance and Banking'

'As the world has latterly passed through the orbicular financial crisis that begun in 2008 in the regular army with the banks collapsing, analysts ar freehand different opinions and do in the raw scotch hypotheses about the melodic phrase of, as hygienic as the process of different countries fly from the crisis. Among wholly these new theories, the case of Islāmic banks is elicit in impairment of its nature and consequences. In my essay, I provide try to sidle up the base conventions of the Islāmic finance, the reasons of the limit of touch on, the most primordial(prenominal) tools used by Moslem banks in economic activities and design explanation of them, and last my view caput of the probable future day improvement of the Islāmic financial system.\nFirst of all, allow us trace how Moslem banks in truth work and what their briny differences atomic number 18 in comparison with established banks. In this banking system, banks are operated b y Islamic laws (known as Sharia), so Islāmic economic principles are considered as primary guidance. Two basic doctrines posterior Islamic banking are the manduction of profit and sacking and, significantly, the prohibition of the collecting and deliverment of interest. indeed contrasted conventional commercial message banks, Islamic banks do not pay or accuse interest on bring or espousal of money. 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 other things, the admit and payment of riba. The interpretations to illuminate the meaning behind this restriction suggests that earning or charging extra essence of money from debitor has to be seen something as immoral behavior, because crystallise pressure on your borrower is actually dirty from the viewpoint of Islam. To make it clear, the religion of Islam fundamentally promote the princi ple of justice in the financial activities as well as in all other activities of an individual. Therefore... '