| Earlier this year, the Istanbul Stock Exchange launched an index of Sharia compliant banks and companies. Since then, the emergence of "Islamic banking" -- also known as "participation banking" -- has garnered considerable media attention.
It has been widely reported that these banks do not charge interest, or "riba", because it is forbidden according to Islamic law. The actual mechanisms by which the banks operate, however, and the ways in which they differentiate themselves from the mainstream financial sector, remain poorly understood..............................................Full Article: Source
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