Islamic Banking

Islamic banking is banking system based on the implementation of the islamic law. This system is based on the establishment of the islamic prohibition to lend or collecta loan with a loan charging interest (riba), as well as the prohibition to invest in business categorized forbidden . Conventional banking system can not guarantee the absence of these things in the investment , for example in business related to the production f food or drink , media or entertainment business are un islamic, and others.

Although this principle may be applied in the economic history of islam, but only in the late 20th century began to stand up islam bank that applied commercial institutions of private or semi-private in the muslim community in the world.
Already understood convention bank usually grow with the arrival of the colonial. Similarities between the period of colonial occupation with the establishment of these bank in the islamic society justify the opinion that bank are deliberately constructed in order to assist with the control of the colonial economy.