Your friend argues that Islamic banks also charge borrowers extra, and this is no different to conventional banks. For example, if Mr Ronaldi borrows money $1,000 from an Islamic Bank and has to pay back $1,100 in 1-year time, he considers the additional $100 as interest (riba). Sometimes, Conventional Bank may even charge lower than the $100 charged by the Islamic Bank. He believes that whatever the term is called (hibah, fee, etc) by the Islamic Bank, it still means charging extra and therefore a interest.

Do you agree with his statement? Discuss.