Islamic Banking: Steady in Shaky Times - washingtonpost.com
Rated • 1 review • financial planning • washingtonpost.com
From article: "The theological underpinning of Islamic banking is scripture that declares that collection of interest is a form of usury, which is banned in Islam."
"Rather than lend money to a home buyer and collect interest on it, an Islamic bank buys the property and then leases it to the buyer for the duration of the loan. The client pays a set amount each month to the bank, then at the end obtains full ownership. The payments are structured to include the cost of the house, plus a predetermined profit margin for the bank."
