An Introduction to the Interest-Free Banking System

The global banking industry serves as an important part of economic activity, impacting individuals, businesses, and nations alike. Traditionally, banks have been considered primarily as financial entities, often overlooking ethical considerations in their pursuit of profit through interest-based transactions. However, the concept of interest—central to conventional banking practices—is expressly prohibited by several major religions, including Judaism, Christianity, Hinduism, and Islam. This ethical challenge has led to the evolution of an alternative model known as interest-free banking, also referred to as Islamic or participatory banking.