It's a form of banking where there is no charging of interest, instead the the financial institution and the individual share the risk of loss or the fruits of profit. Also, it deals in good and services and not in money. Speculation is not a part of this form of banking and investments are not made in certain areas like- alcohol, gambling, pornography etc. Several economist feel that there wont have been a global economic crisis if such a banking practice was in place. This thought has also led to the rise of institutions which provide the said form of banking. UK has been one of the foremost to adopt it. SBI has promoted it in India.
What kind of banking is being considered as a more dependable form?
What kind of banking is being considered as a more dependable form?
1 comment:
islamic banking.
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