Numerous verses of the Qur’an contain statements about economic values and ways to manage, for instance, a household. The Qur’an is filled with such expressions as ownership, choice, duty, discipline, limit, measure, weight, law, deed, et cetera. The evolution of Islamic economic principles (freedom, justice, equality, fraternity) is revealed in the Qur’an, where great importance is attached to the equivalent exchange of goods. Among the principles of Islamic beliefs associated with the economy, one of the main ones is that all material wealth belongs to Allah, and only Allah has an absolute and real right to own. In this way, people are Allah’s vicegerents on earth, and therefore a person’s right of ownership is not complete.
One of the crucial features of Islamic banking is the prohibition to charge interest. However, the principles and functions of Islamic finance and banking systems are more diverse. They comply with Sharia law that establishes economic management and the social, political, cultural aspects of Islamic societies. Moreover, in the Islamic financial system, any predetermined rate, which depends on the timing and amount of the loan, is prohibited. Islam encourages profit but condemns the use of interest. According to the Islamic worldview, charging interest does not lead to the creation of a product and does not increase social welfare. Since the bank does not charge interest on lending money, it becomes, in fact, an investor, not a creditor.
Nevertheless, the functions of banks in the Islamic model do not differ from the traditional ones: they provide the national payment system and act as financial intermediaries. The critical difference is the prohibition of receiving interest payments. At the same time, Islam does not condemn profit-making in general. Money is viewed as potential capital that becomes real capital when invested in productive activities. In this regard, any gambling, as well as work with derivative financial instruments, is prohibited since operations with them are characterized by significant risks. Following Islamic banking rules, the fulfillment of the contractual obligations is the most important for the parties to the transaction, and this leads to reduced risks for all the participants. In accordance with Islamic ethics, profit should be a reward for risk, labor, and effort.