Islamic Banking System and how they reconcile the issue of the usury (interest) with other international banks.

Islamic Banking System and how they reconcile the issue of the usury (interest) with other international banks

Islamic Banking System and how they reconcile the issue of the usury (interest) with other international banks.

Islamic Banking System and how they reconcile the issue of the usury (interest) with other international banks.:There are currently over 320 Islamic banks operating in the world. However, this growth has been termed as extremely expensive. They have a large client base and this is proof that they are indeed a great phenomenon. Notably, theoreticians of Islamic Economy cause huge credit for growth of the present-day Islamic financial system.

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For instance, in case of a loss, the ability of international banks to reduce the capital value is a key factor to consider especially in the Islamic environment. In some cases, interbank investment facilities are established to provide Islamic banks with short-term funds from one bank to anther based on loss and profit sharing arrangements (Venardos, 2012, p. 19).

References
Frick, M.-L. (2013). Islam and international law: Engaging self-centrism from a plurality of perspectives. Leiden: Brill.

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