ISLAMIC BANKING
Islamic banking is a system of banking that is based on the sharia laws also known as the Islamic laws. The Islamic banking as guided by the Islamic economics is operated based on two major principles * The sharing of loss and profit and, *The prohibition of the collection and disbursement of interest as is not permitted in the Islamic law The worlds first full fledged Islamic bank was and is the Dubai Islamic Bank established in 1975 Its major advantage is hinged in the fact that it protects borrowers from paying any form of interest on some kind and types of loans. So the borrowers just pay a little sum of money as gratuity to the lenders. While on the disadvantageous side all activities under this system of banking are based on Islamic Morales since its principles are from Islamic laws therefore it exempts investments in some kind of commodities like investment on alcohol, pork and some other materials.