Islamic banking

Definition

A system of banking based on the statutes of Islamic law and economics. Paying or collecting interest, or riba, is prohibited by Islamic law. Sharing profit and loss is a banking principle and shareholder capital and deposits are kept separate to ensure fair revenue sharing.

Use Islamic banking in a sentence

You should always read up on any islamic banking laws before you do any banking in that part of the world.

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If you are going to be doing any deals in the middle east you may want to read up on how islamic banking works.

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I was new to islamic banking so I did not know the right procedures and right way to go about using their system.

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ISK Islamic Financial Services Board (IFSB)