From Mg.co.za: When the global financial system was in meltdown last year, the resilience of Islamic banks began to attract attention. Why were these banks able to weather the storm? The suggestion that a banking system is more stable without interest-bearing assets is a tantalising one.
“Islamic banking is based upon what has been called a ‘real economy’,” says Amman Muhammad, managing director of Absa Islamic Banking. “There are no notional transactions — everything is asset-based. Remember that, according to Islam, money is not a commodity in itself, but a means of trade.”………………………………………Full Article: Source