Islamic Banking

INTRODUCTION
The separation of religion and state is a fundamental normal for the US democratic system and one that is guaranteed by the US Constitution. This division is strictly enforced. The Islamic economic system goes beyond the pure financial and economic matter. The concept of forbidding proceeding involving interest, derivatives or short selling seems like an alien judgment to many westward economists. Indeed when one analyzes the foundations of Western political economy and compares it to Islamic economics the disparity between the two solitary(prenominal) becomes more visible. An Islamic economic system holds opposing views from the Western conventional, capitalistic one.
According to Owoyemi (2003), Islamic avering is a type of banking which depositors of silver with the bank are not rewarded on the basis of predetermined rate of interest and a borrow or drug holdr of such fund is not subjected to the payment of a special(prenominal) rate of interest, no matter the outcome, profit or loss, arising from the use of the money lent.
Establishment and the Development of Islamic Finance in the coupled States
The history of Islamic finance in the United States began with the grassroots efforts of American Finance House-LARIBA, which in 1987 began offering sharia compliant ingleside financing products.



LARIBA is a finance loaner in Pasadena, California that began using investment capital from individualistic American Muslims to provide home financing to other American Muslims.
As early as 1993 a major foreign bank worked with both a US mortgage bank and a key Islamic bank to structure an Islamic home finance program. In 1997 the United Bank of capital of Kuwait (UBK), operating in the United States as a national branch under the National Bank Act, applied to the dominance of the Comptroller of the Currency (OCC) for guidance on a Sharia-compliant ijara (lease-to-purchase) home financing product it sought to offer to US customers.
coordinate of Islamic Banking USA
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