Answer to Question #159272 in Economics for raza

Question

You have studied the application of partnership, sale and purchase, and rental based Islamic financial products in Islamic banks. In contrast, you have also studied the functioning of conventional banks. Your task is to give your personal reflection on:

 

                   i.           Is Islamic banking really different?

                ii.           Which banking side is good for our economy? Why?

Answer 1

I. No, in fact, islamic banks do the same. But trying to required of the Shariah rules they use riskier tools.

II. The standard European banking system is better because it allows the use of standard, less risky banking instruments. And investment can be controlled according to secular laws.