Written by A.L.M. Abdul Gafoor, this is the second of a series of three books which, taken together, are expected to provide a comprehensive banking system that addresses the concerns and needs of Muslims today. The other titles are: Interest-free Commercial Banking and Commercial Banking in the presence of Inflation. In that system time and savings deposits will not bear any interest but the capital will be guaranteed.
This is fine if the depositor's main aim is to keep his savings safe. But what if his primary aim is to use this capital to earn an income? Islam prohibits interest earnings. He could engage himself in some trade which Islam permits - on his own or in partnership with others, even as a sleeping partner - but it may not be possible for many, for personal reasons or for reasons of the modern day environments. Exploring the possibilities of accommodating such capital holders through a bank is the subject of this book.
Studying the type and size of such capital and their owners' geographical distribution, and the type, size and distribution characteristics of investment opportunities, this book presents a single scheme with several options for bringing capital and entrepreneur together through banks in a mutually beneficial and responsible manner. The scheme can be offered through investment companies as well. Written lucidly in simple English, it is suitable for reading by professionals and academics as well as by the general public.