Islamic banking: concept and implementation

Abstract

There is widespread confusion about the role and concept of Islamic Banks and the Islamic Banking System both in the Islamic countries and the non-Islamic countries. This confusion is clearly manifest in the attitudes and views held by various institutions and intellectuals towards the Islamic Banking System. I believe that this situation is due largely to the lack of proper knowledge and understanding of the real concepts and philosophy underlying the Islamic Banking System. Another contributing factor is that the word or the term "Bank" and functions of financial institutions have created rigid images and ideas in peoples minds. Moreover, they tend to judge and evaluate the system even before it has had a chance to establish itself fully. You will agree with me that it is neither fair nor valid to form opinion and draw conclusions about Islamic Banks while they are still in early and first phase of development.