On the mechanisms of Islamic banking

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Doklady Bashkirskogo Universiteta. 2019. Volume 4. No. 1. pp. 67-72.

Authors

Abdullin A. B.*
Bashkir State University
32 Zaki Validi Street, 450074 Ufa, Republic of Bashkortostan, Russia

Abstract

We consider the mechanisms of the work of Islamic banking (partnership banking), how customers and banks interact, and how they enter into contractual relations regarding the division of future profits. The issue of non-identity of loan interest in conventional banking and the share of the bank’s profit in the client’s project’s profit is discussed.

Keywords

  • conventional banking
  • Islamic banking
  • partner banking
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