Islamic banks aim for the mainstream
Key concepts in Islamic banking
The essential difference between western banking and Islamic banking concerns interest payments. There is a basic principle in Islamic law that exploitative or unfair contracts are unenforceable. This includes any contract which involves uncertainty, risk or speculation (gharar), or contracts that provide for the payment of interest (riba). Such agreements are not banned outright, but may be, depending upon the precise nature of the agreement.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.