#islamic banking differs from conventional #banking by adhering to #shariah principles, prohibiting #riba (#interest), and engaging in #ethical financing through asset-backed transactions like #murabahah and #tawarruq. Unlike conventional #loans, which charge interest, Islamic #financing involves structured #sales, such as #commodity Murabahah, where #banks facilitate transactions by #purchasing and #reselling assets instead of lending #money directly. This ensures compliance with Islamic #law while providing #liquidity. Critics argue that such structures merely replicate conventional banking under different #terminology, but #scholars emphasize the distinction between intent and #contract mechanisms. Understanding these principles fosters informed discussions rather than misconceptions. #publicbank #rhb #cimb #maybank #bankislam #muamalat #hlb #hongleongbank #aeon #islam https://www.linkedin.com/pulse/islamic-banking-vs-conventional-understanding-core-abdul-hafiz-edirc