Islam encourages alms, charity and benevolent loans to promote welfare economics. Islam allows earning wealth through fair trade and commerce to earn money but precludes business transactions containing interest, speculation and gambling etc. Islam also discourages the flow of capital among the richer only; and guides to allow poor to access capital by mode of equity participations. It guides humanity for expenditure based economic development. Considerably there is not a single reference about any banking model in Islamic scriptures including Quran and Hadiths. During Islamic revolutions (Prophethood and Caliphs periods) there was institution called Baitulmaal (Public Treasury) wherein wealth was never stocked rather instantly allocated on need basis. Institution of Baitulmaal can no way be comparable with any bank. So, terming interest free banking as Islamic banking would be an exaggeration only. Thus there is need to avoid terming Interest free banking as Islamic banking.
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