Question

As an industry, Islamic finance and more specifically Islamic banking, has been criticized for neglecting the profit and loss sharing (P.L.S.) model originally intended as its main mode of operation by the theorists of Islamic economics and focusing more on sale-based and lease-based models. is there any possible way to justify the criticism?

Answer 1

Islamic Finance Industry is basically an investment based model, rather than usual lending and borrowing model, now since the investment has to be made in rightful manner, it creates a sense of safety, this industry also considers moral and social values towards man kind and also it ensures that there is equal business risk among the bankers and the investors, so these features basically provides satisfaction to humans, and hence it requires appreciation for that