| Through its creative use of language, the bank will lay claim to interest-free handling commission, fee, profit or mark-up, yet, to the conventional interest-based bank, such a cost-plus transaction (murabahah) looks just like a loan at 10 per cent compound interest.
In this respect, can we not remember that profit maximisation is the objective of any financier? Were it to be the case that the cost, benefits, and terms and conditions to lenders in Islamic banking are totally different from the conventional banking system, banking companies in the West would not have opened up Islamic windows in the first instance..............................................Full Article: Source
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