re islamic banks was re slavery in article monu cc monash edu au darice yoyo cc monash edu au fred rice writes in apr bmw mayo edu vdp mayo edu vinayak dutt writes so instead of calling it interest on deposits you call it returns on investements and instead of calling loans you call it investing in business that is in other words floating stocks in your company no interest is different from a return on an investment for one thing a return on an investment has greater risk and not a set return i e the amount of money you make can go up or down or you might even lose money the difference is the risk of loss is shared by the investor rather than practically all the risk being taken by the borrower when the borrower borrows from the bank but is it different from stocks if you wish to call an investor in stocks as a banker well then its your choice relabeling does not make it interest free it is not just relabeling as i have explained above it is relabeling also its still not interest free the investor is still taking some money as dividend on his investment ofcourse the investor in islamic banking its your so called bank is taking more risk than the usual bank but its still getting some thing back in return also have you heard of junk bonds vinayak vinayak dutt e mail vdp mayo edu standard disclaimers apply
