Islamic banking, also called Islamic finance or Sharia compliant finance, refers to financial or banking activities that comply with Sharia (Islamic law).
The two fundamental principles of Islamic banking are the division of profits and losses and the prohibition on the collection and payment of interest by creditors and investors.
Islamic banks profit through equity participation, which requires the borrower to provide the bank with a share of their profits rather than paying interest.
Some traditional banks have windows or sections that provide certain Islamic banking services to their customers.