THE IMPORTANCE AND NECESSITY OF ISLAMIC BANKING IN THE INTERNATIONAL FINANCIAL MARKET
Tursunov Anvar Sultonovich,
DSc, Associate Professor, Vice-Rector for Academic Affairs
Banking and Finance Academy of the Republic of Uzbekistan
Email: office@bfa.uz, ORCID: 0000-0001-9556-4332
Tashkent, Uzbekistan
Khalilova Nilufar Akhmatovna,
Master’s Student at the Banking and Finance Academy of the Republic of Uzbekistan
Tashkent, Uzbekistan
Abstract. An Islamic bank is a financial intermediation system that complies with Sharia law and serves as an alternative to the traditional Western banking system. The necessity for such an alternative arises from the prohibition of certain practices inherent in Western banking activities within the Islamic world. Islamic banks operate with the goal of generating profit, similar to Western banks; however, they have the additional objective of supporting Sharia law and providing Sharia-compliant services to their clients. Despite the various interpretations of Sharia law, Islamic jurisprudence broadly agrees that transactions based on interest rates, excessive one-sided risk, and speculative activities involving uncertainty are unacceptable.
Keywords: Sharia law, Islamic bank, traditional bank, banking transactions