Traditionally, Islamic and conventional banking came from two very different places – and not just geographically. Islamic banking was linked mostly to Muslim countries in the Middle East, while conventional banking was associated with non-Muslim, Western countries. The practices and values were similarly diverse.
While they remain two very distinct product offerings, the growth and development of Islamic banking and finance in recent years has resulted in its emergence as a viable alternative to conventional banking. The modern, wider spectrum of Islamic finance encompasses not only banking activities but also capital market activities, capital formation, and other financial instruments and intermediation. Justice, moral obligation, solidarity, accountability, and equality are cornerstones of the Islamic way of life. Islamic banking is therefore very much focused on "ethical" banking. It promotes fairness and justice with all its stakeholders.
