Islamic bank

An Islamic bank operates based on principles of Shariah law, which prohibits interest (riba) and excessive uncertainty (gharar). Instead of charging interest, it uses profit-sharing, leasing, and joint venture arrangements to generate returns. These banks promote ethical investments, ensure transactions are transparent, and avoid industries like alcohol or gambling. They aim to facilitate financial services while aligning with Islamic moral values, making them suitable for Muslim individuals and businesses seeking compliant financial solutions. Overall, they function like conventional banks but with specific rules that adhere to Islamic ethical standards.