5 major differences between Conventional business banking vs Islamic banking

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5 major differences between Conventional business
banking vs Islamic banking

• NBF

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• Islamic banking is a financial system based on
  Islamic (Shariah) rules. In Islamic banking,
  interest is strictly banned. It is an asset-based
  financing system in which the exchange of
  materials forbidden by Islam is not permitted. A
  loan for a wine shop, for example, is not
  possible.
• Conventional business banking, on the other hand,
  is a profit-driven banking system, with the goal
  of earning money through interest.

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Conventional business banking vs Islamic banking 
 
Let us look at some of the key contrasts between
Islamic banking and conventional banking systems

• Conventional Business Banking
• In conventional business banking, money is a
  product in addition to being a medium of exchange
  and a store of value.
• When cash financing, running finance, or working
  capital finance is disbursed, no agreement for
  the exchange of goods and services is formed.
• There is no real growth in wealth since money is
  confined in a few hands.
• Debt financing provides a benefit of leverage for
  a business since interest expenditure is deducted
  from taxable profits that impose a significant
  tax burden on salaried individuals. As a result,
  people's savings and disposable income suffer and
  eventually, the Real Gross Domestic Product (GDP)
  falls.
• Interest is applied even if the organisation
  loses money. As a result, there is no concept of
  sharing loss in a conventional business banking
  system.

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Conventional business banking vs Islamic banking 
 

• Islamic Banking
• A real asset is a product, and money is used as a
  medium of exchange.
• When disbursing cash under Murabaha, Salam, and
  Istisna contracts, the completion of agreements
  for the exchange of goods and services is
  required.
• An increase in the wealth of the people occurs as
  a result of the multiplier effect, and the wealth
  passes into the hands of a large number of
  individuals.
• Sharing profits in the case of Mudarabah and
  sharing in the organisation of the business
  venture in the case of Musharakah generates
  additional tax for the Federal Government. As a
  result, the tax burden on salaried individuals is
  reducing. People's savings and spending power
  have increased, resulting in an overall increase
  in the Real Gross Domestic Product (GDP).