Making sense of Islamic banking

An explanation is given regarding the concepts of equity and morality which are at the root of Islamic banking. These values are key to of Islamic law. Profit-sharing schemes to promote and enhance the production process, contracts to conduct operations, and other topics are discussed, and an explanation is given as to why usury is prohibited. The final point made in the article is that accounting methods now being developed by Islamic financial institutions will ensure that such schemes and contracts continue to be fair and profitable to both parties. According to the author, the current challenge for Islamic finance is to enhance its activities through an effective operational base.