Definition

Islami Banks

Islami banks do business of banking as commercial banks but it is on the basis of Islamic Shariah or Islamic principles and guided by Islamic economics.

Two basic principles behind Islamic banking are

 - the sharing of profit and loss and,

 - significantly, the prohibition of the collection and payment of interest.

 

 

Share it:  Cite

More from this Section

  • Parallel bonds
    Parallel bonds refer to those bonds placed in different countries and denominated in the ...
  • Bills discounted
    This item represents the total of the bills discounted which have not yet matured and ...
  • Open market purchase
    Open market purchase is a purchase of bonds by the Fed. ...
  • Default
    Default is generally, failure to satisfy an obligation when due, or the occurrence of ...
  • Law of one price
    Law of one price— states that if the identical product or service can be sold in two ...