The Five Pillars of Islam are the basic acts of worship that form the foundation of Muslim life.
What Is the Islamic Banking System? How It Is Works. What are the benefits of the Islamic Banking System?
What Is the Islamic Bank? How It Is Works Islamic banking is a system of banking that operates in accordance with Islamic principles, which are based on Sharia, the Islamic legal system. Islamic banking principles prohibit the payment or acceptance of interest (riba) for loans of money. Instead, Islamic banks operate on the concept of profit and loss sharing and adhere to ethical and moral guidelines. Here's How Islamic banking works: 1. Interest-Free Banking: Riba-Free Transactions: Islamic banks do not charge or pay interest. The charging or receiving of interest is considered usury (riba) and is strictly prohibited in Islamic finance. 2. Profit and Loss Sharing: Mudarabah and Musharakah: Islamic banks often engage in profit-sharing arrangements (Mudarabah) and joint ventures (Musharakah) with businesses. In Mudarabah, the bank provides the capital, and the entrepreneur provides the expertise. Profits are shared based on a predetermined ratio, but losses are bor...

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