Islamic Banking
Islamic banking refers to the banking activity, or a banking system that is carried out in accordance with the Fiqh al-Muamalat or the Islamic rules on transactions known as the Shariah.
Where’s the bank security guard?
One of the most distinct banking rules of the Shariah, which also makes Islamic banking different from conventional banking, is its prohibition on interest. This rule strictly does not allow the paying and receiving of interest, which means that depositors cannot receive any interest on their deposit accounts. But of course, this does not necessarily mean that depositors are not rewarded for transacting with the bank. In Islamic banking, deposit rewards are given in the form of dividends and through a profit sharing arrangement between the bank and the depositor.