Islamic Banking Definition
From HodHood
Definition
The term Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law Sharia principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called Riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haram (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). Furthermore the Sharia prohibits what is called Maysir and Gharar.
