Islamic Modes of Financing

Thus, Islamic banking emerged as a response to both religious and economic exigencies. While religious exigency calls for avoiding any transaction based on interest, economic exigencies, on the other hand, provide a new outlook to the role of banking in promoting investment/productive activities, influencing distribution of income and adding stability to the economy. Islamic banking is thus perceived as an improved system in all dimensions.

Explain Islamic modes of banking discussed in course, with real world example of same client of an Islamic bank for all modes. Also compare these modes with the conventional counterparts.