Banking behind the veil

Islamic banking is better suited than capitalism to avoiding the mistakes that have led the Western banks and their economies into their present financial troubles. Some partnership agreements and schemes allow lending without interest. Under such schemes banks receive a contractual share of the profits generated by borrowing firms, encouraging equity buildup as opposed to the accumulation of debt. Few Westerners take seriously a system of finance based on the sharing of risk and profit, rather than on the payment of interest. This is the mistake in capitalistic thinking and the reason that Islamic banking will succeed where Western banking has failed.