Taking or giving interest is prohibited in Islam. Then how banks in Muslim Countries work?

Question

Banks purchase money at a lower rate(interest rate on deposits) and sale money at a higher rate(rate of interest on loans). If banks in Muslim Countries do not pay interest on deposits and are not charging interest on loans, what is the source of profit of Banks in Islamic countries?

Answer 1

The question is somewhat problematic because not all "Muslim countries" go with Islamic banking (e.g. the Republic of Torkiy whose population is 99%+ Muslim, has the same banking system as in Europe or in the US.)

As for the so called "Islamic products", as far as I know, instead of giving you interest the bank does "profit sharing",. ie. they give a share in the profit the bank makes. But I have never heard of a bank who asked from their depositors money back because the bank lost money. They make their money not by earning interest but by "making good investments".

Living and regulating life according to a text that was written many centuries ago (regardless of how good it was at the time it was written) should be difficult, to say the least....For avoidance of doubt, I hold this view about all kinds of orthodoxy, not just this religion/thought or the other.

Answer 2

Under Islamic Banking, the bank invests in properties and leases them out for rent. Rent collection is permitted activity for banks but not lending of money. Please check with any Islamic bank in your country for details.

Answer 3

islamic countries also torture their own muslim citizens on behalf of americans. they also fight wars with each other as long as the CIA is giving them millions in bribes to do it. they also ask the american military to come defend them (which is in direct contradiction to quranic preachings). they also gas and butcher minorities by the millions. you could make a top 100 of the number of things islamic countries do against the commands of their own religion. little wonder all the good muslims are running away from their own countries and practicing their faith elsewhere.

Answer 4

most invest outside their place of operation-europe etc