Islam is not mere religion but a “deen”, meaning “the way of life”. It touches upon the material as well as spiritual dimensions of human existence. Allah (SWT) emphasized the completeness of Islam in the following Quranic verse; “This day I have perfected your religion for you, complete My blessing on you and approve Islam as the way of life for you” (al-Maidah: 3)
Islam demands all economic activities including banking should run in accordance with the Islamic Shariah i.e. prohibition ofinterest from all transactions and dealing in businesses that are allowed (halal) in shariah. Islamic Banking has potential for earthly returns (earning profit) as well as reward in the Divine world (benefit in hereafter) by abiding the instructions of the Almighty Allah.
To ensure compliance of shariah guidelines, Islamic banking practices a strong documentary record keeping system eliminating all vagueness regarding business & responsibilities of the parties involved.
