The below strategy is at evolving stage...
Interest is prohibited in Islam however, we can take profits from the investment. Who'll share the risk is the main question. In conventional interest based system the entire risk is forwarded to the customers who borrows from the bank and then bear the entire risk. In an Islamic finance framework lender and borrower both has share in profit and risk, still it depends on the agreement between the two parties. Thus Islamic finance has lesser instability than interest based finance since lender is also careful of lending to the risk seeker person.
Interest is prohibited in Islam however, we can take profits from the investment. Who'll share the risk is the main question. In conventional interest based system the entire risk is forwarded to the customers who borrows from the bank and then bear the entire risk. In an Islamic finance framework lender and borrower both has share in profit and risk, still it depends on the agreement between the two parties. Thus Islamic finance has lesser instability than interest based finance since lender is also careful of lending to the risk seeker person.
3 comments:
This is true that an Islamic finance has lesser instability than interest based finance since lender is also careful of lending to the risk seeker person.
Your comment on Islamic finance is worth appreciating.
Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. www.finmaxfx.com/en
Post a Comment