International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

Theoretical Differences between Islamic Banking and Conventional Banking
Zahid Iqbal, Maria Quibtia

Abstract
Islamic banking is growing almost 2-2.5 times as compare to the conventional banking in the countries which have more than 50% percent Muslim population and growth in the countries which have lesser than 50% Muslim population are also remarkable due to the innovative products and services, real asset creation that is more accelerating in the economic development. One of the main reasons of the growth is the conventional banking market have been saturated as compared to the Islamic banking market. The Islamic banking institutions are more risk taker because they directly involve in the management of the projects by creation partnership with the borrower and earns more than the conventional one’s. The estimated size of Islamic banking is $ 1.66 trillion to $ 2.1 trillion worldwide. In this paper an effort has been made to provide the fundamental difference between the conventional banking and Islamic banking system

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