Page "Islamic banking" Paragraph 0

Islamic banking ( or participant banking ) () is banking or banking activity that is consistent with the principles of sharia law and its practical application through the development of Islamic economics.

Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees ( known as riba, or usury ) for loans of money.

Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam (" sinful and prohibited ").

Although these principles have been applied in varying degrees by historical Islamic economies due to lack of Islamic practice, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community.