Insights on Islamic Finance - Part Two

Riba, the major driving force and key element in conventional banking, is one of those items which have been strictly forbidden and declared as Haram in Islam. The convention banking and finance system is not meant for the Muslims and Islamic societies. Practicing riba based banking and financial system is sinful and destructive for the Muslims for which the State and its Organs are primarily responsible. It is true that the modern economies cannot survive without a sound financial system but it is not necessary that it should be based on conventional banking practices and riba. Shariah compliant solution to the riba based conventional or modern financial system is not a dream now.It is second part of the series on Islamic finance and this article particularly discussed history of Islamic Banking and Finance