Difference Between Islamic Banking And Conventional Banking

On the other hand conventional banking is an un ethical banking system based on man made.
Difference between islamic banking and conventional banking. Interest in completely prohibited in islamic banking. Fundamentally the difference between islamic banking and conventional banking is that the idea fairness to the clients is theoretically focused on the idea of islamic banking itself. In conventional banking fixed rate of interest being given to depositors. It is asset based financing in which trade of elements prohibited by islam are not allowed.
The conventional bank offer greater emphasis on credit worthiness of the customers. Conventional banks aim to maximize returns and minimize risk. In islamic banking leasing ownership remains with bank and risk and reward bear by the bank as owner of asset. For example you cannot take a loan for a wine shop.
The bank s interest comes before the client s as opposed to the islamic banking system. The islamic bank gives greater emphasis on the viability of the projects.