Islamic finance prohibits interest and involves sharing of profit and loss, while conventional banking uses interest as a pricing mechanism. This chapter compares the key differences between Islamic finance and conventional banking practices around financing activities, risk management, and treatment of profit and loss.
Islamic finance prohibits interest and involves sharing of profit and loss, while conventional banking uses interest as a pricing mechanism. This chapter compares the key differences between Islamic finance and conventional banking practices around financing activities, risk management, and treatment of profit and loss.
Islamic finance prohibits interest and involves sharing of profit and loss, while conventional banking uses interest as a pricing mechanism. This chapter compares the key differences between Islamic finance and conventional banking practices around financing activities, risk management, and treatment of profit and loss.