Hi, Assalamualaikum. Today we learn about Difference Of Islamic Banking and Convensional Banking. Many still do not understand the differences between the products and services offered by Islamic banking and conventional banking. Many are still saying that Islamic products and services are just conventional products that have been window dressed. Some even claim that Islamic banking only changes the terms such as ‘interest’ into profit rate, ‘Ujr or wage cost, and other Arabic terms are viewed by critics as tricks. These general statements should not be made without knowing exactly how an Islamic bank operates, as such statements will inhibit the revival and development of the Islamic banking industry. We do acknowledge that there are problems in the implementation process and other problems in Islamic banking. However, in my opinion, it is normal to experience difficulty before achieving success. The partnership principle in the finance products also offers customers profit sharing with the bank. However, if the customer faces a loss, the Islamic bank will bear part of it based on this contract. A banking system devoid of riba fulfills the needs of both customers and the general public. Islamic banking, through the introduction of Islamic concepts, has successfully generated large profits in the business it participates.

DIFFERENCE OF ISLAMIC BANKING AND CONVENSIONAL BANKING by Lima Sekawan