Islamic banks

Islamic banks operate under Shariah law, which prohibits charging interest and engaging in unethical activities. Instead of traditional interest, they use profit-and-loss sharing models, leasing, and partnership arrangements to generate revenue. They focus on ethical investments that promote social justice and avoid financing industries like alcohol or gambling. Customers’ deposits are viewed as funding for real economic activities rather than loans earning interest. Overall, Islamic banking aims to provide financial services aligned with Islamic principles, ensuring fairness, transparency, and ethical standards in banking transactions.