Islamic Banking

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Islamic Banking

A system of banking that only offers products that conform to the sharia, or Islamic law. For example, in Islamic banking, checking and savings deposits do not accrue interest. They either lie dormant until withdrawal or are invested. Because this involves higher risk than conventional banking services, various highly technical products have been developed to mitigate risk and generally imitate "regular" banks as much as possible while still complying with Islamic law. Considerable debate exists as to whether these Islamic banking products are in fact sharia-compliant.
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References in periodicals archive ?
Islamic financing has struggled to gain adherence in Australia due in part to tax issues which can penalize the asset-based nature of such transactions.
Australia has begun to see a steady stream of property deals using Islamic financing as the attraction of low-risk tenants
The Financial Services Authority (FSA) working group was created to discuss how to integrate Islamic financing transactions into the United Kingdom's legal and financial system.
Hashmi, Comment, Islamic Financing in the United States: Solution or Deception?, 52 How.
This course has been such a success that we have now introduced a diploma in Islamic financing. Islamic finance is picking up in Oman.
Together with Islamic windows of conventional banks such as Gulf Bank Algeria and Trust Bank, the market share of Islamic financing in the loan market is estimated at around one quarter of all loans.

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