Islamic banking standards

Islamic banking standards are set of principles that ensure banks operate according to Islamic law (Shariah), which prohibits interest (riba) and unethical practices. These standards emphasize ethical investing, risk-sharing, transparency, and the prohibition of activities harmful to society. Banks use profit-and-loss sharing arrangements instead of interest, invest only in permissible (halal) activities, and have Shariah boards for oversight. Overall, these standards aim to provide financial services that align with Islamic values while promoting fairness and social responsibility.