By Hossein Askari, Zamir Iqbal and Noureddine Krichene
Abstract
The entire foundation of Islamic financial system is based on the teachings of Islam which incorporate rules and principles as enunciated in the commandments of God in the Holy Quran and the tradition of Holy Prophet. A synopsis of basic principles of Islamic banking and the modes of financing in compliance with these principles had been given One of the cardinal principles is prohibition of Riba in all its forms. The difference in working between Islamic system and conventional system in intermediation and other fields has been emphasized. In Islamic system trade is allowed in Halal Merchandise and disallowed in Haram goods. The article brands the present Islamic banking as not completely Islamic for which some examples have been quoted.
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