Dissertation

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The specificities that distinguish Islamic banks from conventional banks and that affect the demand
(2022)
Abdenbaoui, Noha
There are many banking types in the world but there are two main ones that we encounter frequently and that we aim to put the emphasis on in our thesis and study in dept which are the conventional banks and the Islamic banks. We may say that the principal function of convention banks is that the banks aim to earn interest by lending money to borrowers in contrast to the Islamic banking system that is sharia compliant and which is based on the principle of the partnership, the share of profit and loss. As a matter of fact, all the actors the shareholders, the depositors and the borrowers take part in a profit loss sharing basis. Islamic banking is a financial system ruled by the Islamic law of sharia. The main precepts and rules of sharia shall be applied and respected. The prohibition of interest called Riba is at the main core of the precepts taught by Islamic law.
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