Islamic Banking System: Need, Dimensions and Function

The Islamic Banks can do the business without being involved in forward swaps of exchange dealings. When we move to borrowing and lending activities, matters become different. Any extra repayment rather than original principle any lending-borrowing relation is considered be usury. Usury Islam isconsidered one big sins. In Islam, there no difference between usury as an excessive interest or so-called legal itself. Therefore depositors who fact are a lender bank cannot allowed take measures; but he investor. percentage profit must not offered same conditions applied other investors by receiving portion that comes out pool investment portfolio managed bank. with user funds borrowing-lending relation; it has different type contractual arrangement. this paper examines structure, function dimensions Interest free