Islam proposes that the banking systems that operate on the basis of an ex ante fixed rate of interest to replaced by a profit-sharing system in which the rate of return to the financial resources is not known and is not fixed prior to the undertaking of the transaction.

While in Islam interest is forbidden, trade and profits are permissible and in fact encouraged. The papers in this volume all address one or more of the basic questions at the theoretical level.

The salient features of the proposed system are:1) There is no interest on deposits, but capital is guaranteed.2) Lending and investing are treated differently; loans are interest-free but carry a service charge, while investing is on a profit-and-loss-sharing (mudaraba) basis.Commercial banks will grant loans but they will not engage in investment-financing. Investment-financing will be done through investment banks and investment companies.3) Value erosion of capital due to inflation is compensated.

A discussion of the monetary policy and banking in Islam.

Umer Chapra: Towards a Just Monetary System: A Discussion of Money, Banking, and Monetary Policy in the Light of Islamic Teachings.

A unique subject-wise collection of 'Fatwas' (legal opinions), relating to the operations of Islamic banks.

The Compendium is based on Fatwas issued by the religious boards of Islamic banks.

It took two years to collect, classify and translate the Fatwas from Arabic to English. The Arabic and English texts appear in the Compendium side by side.

The translation, classification and presentation of the material is by Yusuf Talal Delorenzo, an outstanding Islamic scholar with mastery of both the English and Arabic languages.

"Valuable reading for anyone who wants to understand Islamic banking and its formal and informal societal and political relationships."

"This timely book demonstrates how in-depth academic scholarship can make a signal contribution to a major topical issue of public policy."

"They are the leading experts on the political economy of Islamic banking, and the book will attract the interest of all who wish to understand this phenomenon."

This important book critically examines the traditional interpretation of "riba (translated as usury of interest) and the attempts of modern Islamic banks to put that interpretation into practice.

The first part of the book examines the prohibition and interpretation of "riba in Islam, as well as the controversies surrounding it. The second part examines the alternatives to interest-based financing utilised in Islamic banking and the problems associated with such alternatives with particular focus on "mudaraba, musharaka and "marabaha.

Mirroring the expansion of wealth in the Middle East and Asia and a surge in Islamic self-identity, Islamic banking practices have either become the law of the land or coexist and compete with Western practices in at least six countries.

Why are people continually surprised to discover that money is "just" meaning? Mutual Life, Limited spends time among those who, in acknowledging the fictions of finance, are making money anew. It documents ongoing efforts to remake money and finance by Islamic bankers who seek to avoid interest and local currency proponents who would stand outside of national economies. It asks how alternative moneys both escape and reenact dominant forms of money and finance, and reflects critically on their broader implications for scholarship.

Virginia Morris and Brian Ingram have authored abook on Islamic Investing.

This first-of-its-kind guide provides the information and guidance that Muslims need to make informed investment choices while conducting their financial lives in accordance with Islamic principles. A concise 64 pages, the guide is an ideal introduction for Muslim investors, as well as an essential resource for financial professionals who work with Muslim clients.

Are non-Muslim customers ready for Islamic Financing? In the book Understanding Islamic Banking: the Value Proposition That Transcends Cultures, Joseph DiVanna and expert in global banking, examines how the underlying principles of Islamic banking provides a framework for contemporary retail banks to enable investors of any faith to develop a sense of a higher purpose. The essentials of a bank's value proposition, such as brand identity, innovation, investment strategy, and the generation of investor value are attributes readily identifiable by Muslims and non-Muslims.