Ways of development and formation of islamic banking in modern economy

The article describes the origin and development of Islamic banks. The differences between the traditional and Islamic banks are compiled. In 1985, the concept of Islamic banks was proposed, based on the same principle of profit and loss participation. The key point was to promote the idea of an Islamic financial institution as, first of all, an investment institution. Modern Islamic law differs significantly from traditional law in its form, content, and relationship to positive legislation. In modern legal systems, Muslim law is relatively rare in the traditional form of doctrine, which remains its leading source in a few countries and only about certain branches. The document was developed to create alternative financing opportunities and meet the growing needs of the population and entrepreneurs, expanding the range of banking and financial services offered, and mobilizing resources from domestic and foreign markets based on the principles of Islamic banking and Finance. Islamic banks are financial commercial organizations that attract deposits from the population and entrepreneurs and place them on investments by the principles of Sharia for profit. These include both balanced Islamic banks and separate divisions of traditional banks that provide certain services using various Islamic financing methods, called "Islamic Windows". Unlike traditional banks, Islamic banks place much fewer resources in securities. At the same time, the securities permitted by Sharia ("sukuk") have their characteristics. They must be associated with a specific asset. Owners of such securities do not have a fixed income but share risks with the Issuer. The return on these securities is related to the return on investment in real assets.