ISLAMIC BANKING AND FINANCE INSURANCE

Islamic Banking, finance and insurance is now an established area of law. The author believes that gradual innovation in Islamic banking and its related fields will have significant effect on the Western-oriented banking and finance theories and their practical operations. Banking without interest may sound illusory to some minds, yet the foundation of Islamic banking rests on the principles of lending money without interest based upon the Qtr’an. The full-blown capitalist system is making the rich countries richer and the countries already burdened with avalanche of debts, going further and further down in the morass of poverty. The world will certainly be a better place if there is no interest to pay for a borrower, who borrows money for a worthy cause and enters into a venture with the provider of capital, which aims for sharing legitimate profits through productive efforts and generating collective welfare for the society. The global curse of poverty can certainly be reduced through introduction and practice of Shariah-compliant interest-free banking.