Islamic Banks Could Be The Answer To America's Over-reliance On Credit And Risk

Islamic banking is a growing option in America as various Islamic banks pop up across the country to service those who wish to preserve Shari’aa law or those who just want to use an Islamic bank. The key to these Banks is the shared risk. If the financial models show that the borrower is making a bad investment, the bank will tell them that it’s a bad economic decision and it will not invest with them. The underlying message is that the borrower is in a partnership with the bank, so there are no hidden fees. This may be a much better and less risky model to consider that can get you on the property market with just a 5 percent deposit. Islamic bank also offer Islamic bank accounts. Money from demand and checking accounts cannot be used in lending, it’s considered a trust.