How do interest free banks make money?Islamic banks are forbidden to make interest from their banks. Also Catholic popes outlawed usury as heresy. How do these banks make money? How does the economy flourish? |
How do interest free banks make money?Islamic banks are forbidden to make interest from their banks. Also Catholic popes outlawed usury as heresy. How do these banks make money? How does the economy flourish? |
This type of bank is similar with co-operative in socialist system. They are forbidden to make interest but at the end of closing book there is a part which is called remain operation or in our accounting system called net income.
They do not have any net income, they only have remain operation and it will be divided among members. The percentage of its depends on how active the member using this co-operative or buying something from co-operative. More active then bigger in percentage.
And also from deposit, the bigger of deposit than the bigger in percentage also.
They would charge you a fee to provide safe storage for your money and the convenience of using checks or debit cards or other instruments to access your funds.