a) Islamic banking does not involve transaction of payment or taking of interest, thus cannot maintain the SLR in government bonds which are Interest bearing.
b) Loans are given on Profit/loss sharing basis.
c) Mortgages are based on cost plus profit mark up as opposed to interest based loans.
d) Banks buys an asset and sells it at higher price to client on deferred payment basis.
e) If the bank goes bust, according to Shariah, the depositor is advised to share the loss, though in countries like U.K the bank is legally bound to pay back deposits.
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