DIFFERENT AND SIMILAR ASPECTS OF ISLAMIC BANKING FROM TRADITIONAL BANKS

Commercial banks are those financial instructions which accept and advancing loan on interest basis. They perform different functions as leasing, agency function etc. They have different types of accounts, locker facility for customers. Commercial banking is based on manmade rules and focus on interest financing. Islamic banking, also referred to as Islamic finance or Shariah-compliant finance, refers to financial activities that adhere to Shariah (Islamic law). Two fundamental principles of Islamic banking are the sharing of profit and loss and the prohibition of the collection and payment of interest by lenders and investors. In this article we can discuss about different and similar aspects of Islamic banking from traditional banks