Islamic banking (or participant banking) (Arabic: المصرفية الإسلامية) is banking or banking activity that is consistent with the principles of sharia law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam ("sinful and prohibited"). Although these principles have been applied in varying degrees by historical Islamic economies due to lack of Islamic practice, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community.
Read more about Islamic Banking: Principles, Shariah Advisory Council/Consultant, Islamic Financial Accounting Standards, Fundamentals of Islamic Finance, Usury in Islam, Islamic Financial Transaction Terminology, Islamic Equity Funds, Islamic Derivatives, Islamic Laws On Trading, Microfinance, Controversy
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“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
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