Islamic Banking
"The prohibition of interest is the feature of Islamic banking which most distinctly sets it apart from conventional banking. To Western eyes, this seems a strange restriction, but Christian countries themselves maintained such a ban for 1,400 years. Islamic Banking asks why Islam has been able to maintain its stand. The book explores the intricacies of Islamic law and the religious and ethical principles underpinning Islamic banking. It then considers the analytical basis of Islamic banking...
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Like bumble bees that cannot possible fly, Islamic banks cannot possibly thrive, because Islam does not allow charging interest. Lewis (banking, U. of South Australia) and Algaoud, Chief of Training and Development at the Ministry of Finance and National Economy of Bahrain explain that the operations of Islamic financial institutions are primarily based on a principle of sharing profit and loss. Rather than charging interest, banks participate in the yield resulting from the use of funds that are loaned, and depositors share in the profits of the bank according to a predetermined ratio. Thus a relationship develops between the bank and both types of customers. They explore the implications of such a foundation. Annotation © Book News, Inc., Portland, OR
List of figuresList of tablesForewordGlossary1An introduction to Islamic banking12Islamic law163The basis of Islamic banking344Islamic banking and financial intermediation625Islamic financial systems886Islamic banking in mixed systems1197Corporate governance in Islamic banking1588Islamic and Christian attitudes to usury1859Directions in Islamic finance21110Conclusion240References247Index267
