What are the five basic principles of Islamic banking?
Here are the 5 basic principles of Islamic banking:
- Choice of transfer of ownership of goods sold from the bank or by other parties (ijaroh wa iqtina)
- Capital goods financing based on the pure lease without choice or Ijaroh
- The principle of buying and selling goods by obtaining profit or murobahah
- Financing based on the principle of equity participation or musyarokah
- Financing based on the principle of profit sharing or mudhorobah
