A critical evaluation of articles related to islamic banking

Abstract

Islamic banking is any banking activity carried out within the parameters of Islamic jurisprudence. It differs from the traditional banking business in its prohibition of dealing with interest i.e. borrowing and lending of money for interest. Another feature that distinguishes Islamic banking is the concept of profit and loss sharing paradigm. These features have made this sunrise industry to not only attract new markets but also to show consistent growth over the years. Hence, large conventional banks have also shown interest in venturing into Islamic banking and have opened Islamic banking windows in their commercial set up in order to capitalize on the opportunity. Although Islamic banking is still in its nascent stage, it has become a global force to reckon with due to its strong ethical values and risk-minimization principles. The primary aim of this article is to critically review the existing literature available in studies related to Islamic banking.