Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

can you please explain the difference of Islamic bank and other banks. 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Diff between Islamic and other banks

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

There might or might not be several other differences between the two types of banks, but the absolute major difference between an Islamic Bank and other conventional banks is that all the transactions and dealings done through an Islamic Bank are Shariah-compliant: ie. their transactions are not based on ‘riba’ (interest), they do not deal and thus no income of these banks is generated from products which are declared ‘haraam’ in Shariah (riba, intoxicants, gambling, prostitution, etc.).

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan