The essence of the Islamic economy is the rejection of interest. Also speculation and gambling are prohibited.
There are ethical prohibitions: the production and consumption of alcohol and tobacco, prostitution, pornography, witchcraft, processing of non-halal meat of animals.
The Islamic Bank works on the principle of project investment, that is, it becomes a co-author and co-owner of the project initiators. If an ordinary bank is absolutely not interested in why you take money from it, it only cares about the return of the amount with interest, and interest is the main “candy” of such banking, then an Islamic bank studies all the circumstances of the case.
In an Islamic bank, money is given only for a specific business. This is the first moment. The second point - the ban on futures. No game on products that have not yet been created can be played. No speculation on derivatives or derivatives from derivatives is also possible. Because the "air economy" in the Islamic bank is prohibited.
The fact that the Islamic bank does not participate in dubious operations will be attractive for clients, supporting only those projects that, according to in-depth analysis, have an economic perspective.At the same time, an Islamic bank shares risks with a client. Errors can be both in the analysis and in the examination, but the bank shares these risks with its client.
Islamic banks are developing dynamically, although their share in the global economy is still very small.
It is important to note: the essence of this banking is not in the definition of "Islamic", but in the fact that the percentage (usury as such) is prohibited. Yes, the epithet "Islamic" caught on, but this does not mean that such activities are focused only on Muslims. Today, many such banks are not called Islamic, but are called participation banks or alternative finances.
Criticism, or a spoon of tar:
In the states of the Persian Gulf, Islamic banking is the main financial instrument, which does not prevent them from cooperating with the global financial system. But the "halal" money according to the canons of Islamic banking can not be mixed in the same stream with the money involved in classical operations using lending interest. A full autonomy of the "halal" cash flow is impossible.
It is rather difficult, even almost impossible, to integrate a completely different system into an economic system formed on interest as a payment for lending money.There are questions of control, ethics, liquidity management, insurance, reservations, etc. The thinking of bank employees and the logic of operations are also different. Therefore, there is the opinion of Islamic bankers that it is easier to teach people who are not in the non-banking sphere to engage in Islamic finance operations than to retrain bankers. All this can be called the "financial rut effect".
In Turkey (predominantly a Muslim country), not Islamic, but classical banking works perfectly. So, the issue with the use of Islamic banking is not the needs of the Muslim population, but whether the market needs this tool, how interesting it is.
A question of practical application in "this country" (c): on the sidelines of the Islamic finance summit in Kazan, bankers responded to businessmen: "Dear, the slogan about the absence of loan interest is suitable for the podium, but really I can only give you funding at interest."
In the entire history of Russian banking, the Bank Badr-Forte worked to the fullest extent according to the Islamic banking model, for which the license was revoked in 2006. The decision to apply a last resort — a revocation of a banking license — was made by the Bank of Russia, includingdue to repeated violations within one year of the Federal Law “On Counteracting Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism”. ”