Islamic Finance is the tern use in by financial institutions & allow the use of islamic law, all the directions, rules & regulations sourced from the Quran and the Sunnah. The Islamic prohibits taking or giving interest which is the most essential & chief feature in Islamic banking.
The basic sources of Shariah principles are the Quran, the religious book, which are followed by the consensus of the jurists and interpreters of Islamic law Introduction Profit sharing and fee-based financing approaches have developed in compliance with Shariah laws. These special modes of financing have emerged in retail, private and commercial banking for debt and capital markets, insurance, asset management, structured and project financing, derivates, etc.
The Islamic finance system gives the path for the establishment of new rules in the banking system in the world. infact it is seen that the current capitalist system has failed.