| json_metadata | "{"appParentPermlink":"pku5x39kq","musingAppId":"aU2p3C3a8N","appTags":["economics"],"appDepth":2,"appBody":"<p>Islamic banks are mainly different from conventional banks through the finance procedures they followers and services they provide. <\/p>\n<p>*Islamic banking is based on real business deals and real economic activities. That's why they acknowledge their customer about the risk of investment. There is other thing that they mostly don't have a fixed interest rate- which they call 'Profit'<\/p>\n<p>*While the general\/ conventional banks are based on 'interest' and some other lending and borrowing activities. That makes them more stable and help them avoid risk.<\/p>\n<p>Conventional banks are more risk free, but you have to pay more interest if you borrow loan. <\/p>\n<p>*On the other hand Islamic banking system has to approved by the 'Sariah board and run my Islamic law'. Which make them to bear risks and open to acquire profits. <\/p>\n<p>*Islamic bank run by the profit and loss sharing process. The money they invest on certain business, if face loss they distribute loss to the depositor. This is the islamic rule. <\/p>\n<p>*Conventional bank use the money as a commodity, which runs inflation. Islamic bank use or link up with the real market.<\/p>\n<p>*Islamic bank consider Human aspects, while General banks are Profit oriented-no matter what.<\/p>\n<p>*Islamic banks tend to invest on social development while conventional banks tend to invest on business mostly.<\/p>\n<p>That are the major difference between Islamic and conventional banking in regards of policy and procedure. <\/p>\n<p><br><\/p>\n<p>Thank you. <\/p>\n<p><br><\/p>","appCategory":"economics","app":"musing\/1.1","appParentAuthor":"ijoel","musingPostType":"answer","appTitle":"What is the difference between the economic system of conventional banks and Islamic banks?","musingAppVersion":"1.1"}" |
|---|