Credit creation by conventional banks and islamic banking system

All the conventional banks have been vigorously flourishing with their bedrock-interest. On the other hands, the Islamic banks have also been thriving by making their transactions without, charging or offering, interest because interest is prohibited in Islam. Conventional system of banking has been successfully using the tool of Credit Creation for making money and for controlling money market. But it is still a controversial or unresolved issue how the Islamic Banks can create credit and control the money market. Creating credit is not un-Islamic but the concern is how the Islamic Banks have been creating and utilizing it. This paper explores this aspect of Conventional Banking System with respect to Islamic Banking System.