The objective of setting up Islamic banks, their characteristics, resources and legitimate framework-some questions answered

The main objective of Islamic banks is to obey Allah's directives in financial dealings. Islamic banks are directed by sound management and well-defined policies. The resources of Islamic banks are direct investment, joint-participation projects (like mudaraba), lending without interest, and using zaka (obligatory alms) for social projects. The distinctive features of Islamic banks are the prohibition of riba (usury), focus on development through investments, and linkage between economic and social development. There exist legitimate frameworks for Islamic banks in traditional and non-traditional spheres of Islamic banking.