Islamic banking theory, practice & major issues

Islam has a complete economic system of its own, derived from shari`a . Within shari`a one finds a design for social organization and guidelines for individual social behavior. While the key feature of Islamic economics is its ban on interest, which can be explained, other features deserve some attention as well. Freedom of contract is a part of Islam. Permissible transactions include mudaraba and musharaka . Issues of note include: the banking system; the role of financial markets in an economy; the central bank and monetary policy; the transition from conventional to Islamic banking; Iranian deposits, credit operations, Salaf transactions, Qard hasan loans, etc; and Pakistani participation-term certificates and musharaka and hire-purchase transactions. The elimination of interest would have certain effects on savings and investment. The concerns facing Islamic banking vary among nations.