'Characteristics of Islamic Finance and Banking'

'As the world has belatedly passed through the planetary fiscal crisis that begun in 2008 in the regular army with the banks collapsing, analysts argon broad different opinions and do in the altogether scotch hypotheses about the reservoir of, as wholesome as the touch of different countries escape from the crisis. Among exclusively these new theories, the case of Islāmic banks is take in cost of its nature and consequences. In my essay, I allow for try to high spot the prefatorial linguistic rules of the Islāmic finance, the reasons of the obstruction of interest, the most radical(prenominal)(prenominal) tools used by Moslem banks in economic activities and shortened explanation of them, and in conclusion my view direct of the probable future improvement of the Islāmic financial system.\nFirst of all, permit us draw how Islamic banks really work and what their main differences are in comparison with pompous banks. In this banking system, b anks are operated by Islamic laws (known as Sharia), so Islāmic economic principles are considered as primary guidance. Two basic doctrines layabout Islamic banking are the communion of profit and dismissal and, significantly, the prohibition of the compendium and cook upment of interest. thence strange unoriginal commercial banks, Islamic banks do non pay or ship interest on lending or adoption 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 purely prohibits, among other things, the reception and payment of riba. The interpretations to illuminate the meaning behind this restriction suggests that earning or charging extra tot up of money from debitor has to be seen something as immoral behavior, because devising pressure on your borrower is actually unjust from the viewpoint of Islam. To harbor it clear, the religion of Islam basically promote the p rinciple of justice in the financial activities as well as in all other activities of an individual. Therefore... '