Interest-Free Commercial Banking
“ABOUT THE BOOK
Studies the problem of eliminating interest from the banking system from basic principles. Using a general model of the commercial bank lending process, show that interest can be eliminated from modern a commercial banking without resort to drastic measures. Present a commercial banking system that is free of interest but is fully viable and compatible with current practices in the conventional system.
This system is practicable in strictly Islamic countries, nominally Islamic countries as well as in other countries. The only requirement is that there is a clientele that wishes to avoid dealing in interest. Implementation of the system requires no changes in either the laws of the country or in that of commercial banking.
A full chapter is devoted to the study of Islamic banking: its history, current practices and the problems it faces. Suggestions for overcoming those problems are also given. The resulting system is essentially the same as the one previously arrived at by removing interest from the conventional system.
The proposed system, however, rests on a form theoretical foundation, and provides management information that is very useful for monitoring and control.
Written lucidly in simple English, it is suitable for reading by professionals and academics as well as by the general public.”