Islamic Banking System. Problems & Outcomes
Islamic Banking System is based on the rules of Islam. The two basic principal of this system lies on sharing of profit and losses and the second one prohibits collection and payment of interest on trade activities. According to this banking system the burden of losses and the share of profit are borne by all the three parties involved in the trade activities i.e. “the depositor” , “the bank” & “the borrower”. The basic idea of Islamic Banking system is to provide interest free loans so as to develop trade activities.\n
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