Abolition of interest as an economic proposition

The drive to establish Islamic economic systems in numerous global locations has visibly grown. In the 1970s little was written on the topic. In the 1980s the volume of publications on Islamic economics has been far greater. As a young field, Islamic economics is not fully understood. While the prohibition of interest is a key element in an Islamic economy, it cannot be said that this element is the totality of the field. The Islamic banking system may effectively be viewed in reference to the neoclassical system of the day. The Qur'an clearly prohibits riba, and riba covers all sorts of interest. Following the collapse of some United States banks in the 1980s, there has been a move towards a more equity-oriented approach. Indeed, an emphasis on equity is an economically sound approach. At the heart of the differences between Islamic and conventional banks is not the question of interest, but rather that Islamic banks look at deposits as shares in the bank corporation. A two