Notwithstanding the differences between modern banks and the types of financial institutions emerging at the time of the development and elaboration of Islamic law, that law recognises, regulates and underwrites a variety of transactions and contracts readily applicable to modern banking. Without critically reflecting on the degree to which Islamic law has or can adapt to the demands of modern finance and retail banking, this page reports the basic outline of the pertinent principles and areas of banking law.

Islamic banks may enter into a variety of contracts with customers, many of which function in a manner economically similar to (but legally distinct from) the financial services provided by banks that do not seek to conform to the principles or rules of Islamic law.

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