CONVENTIONAL BANK VS ISLAMIC BANK
Let's understand the major differences between Islamic banking and conventional banking system.
Islamic banking is an Ethical Banking System, and it's practices are based on Islamic (Shariah) laws. Interest is completely prohibited in Islamic banking. It is asset based financing, in which trade of elements prohibited by Islam are not allowed. For example, you cannot take a loan for a Wine Shop.
On the other hand, Conventional Banking is an Un-Ethical Banking system based on Man-Made Laws. Basically they earn their money by charging interest and fees for services unlike Islamic banking they earn their money by profit and loss sharing, trading, leasing, charging fees for charging rendered and using other sharia contracts of exchange.
In the picture above, there are differences of Islamic banking and Conventional Banking.
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