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Originally Posted by mahmudul.alam
Yes Bro, You are absolutely right. Islamic Banks claim that they are interest free, but this is a great lie. They are just like otherbanks, just Use the tag Islamic. Thats it, no difference.
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There are actually some slight differences, at least in Bangladesh, such as:
1. Islami Banks do not apply compound interest, they charge a straight rate "profit".
2. Islami Banks do not invest their fund in interest earning securities.
3. As mentioned earlier, they do not promise a fixed return on deposits, rather they provide an estimated return.
The above does not make them 100% within the rules of Islam, however, it is not entirely like traditional banks either.
Islami Banks in Bangladesh blame Bangladesh Bank's regulations as the barrier to implement 100% Islamic Banking but my guess is, they could not actually devise an acceptable model of pure Islamic Banking that would be competitive and attractive to common depositors.