Access to finance and collaterals: Islamic versus western banking

Islamic banking would help the formation of a fair and thriving economy. This aid would come in the form of available finance to small businesses on a participatory basis. In such an arrangement, collateral would not be necessary. This method is in sharp contrast to that of conventional banks, which demand material collateral. Insistence on such collateral discriminates against small ventures while favoring the wealthy sectors, which have their hands on property. Such a discriminatory system exacerbates inequalities in income distribution. Islamic banking, by contrast, furthers distributive justice.