Abstract
Islamic banking is both a new worldwide phenomenon and a very old school of thought. Its origin may be traced back to the Middle East, but due to the fast development of Asian countries with a majority of Muslims (like Malaysia), this trend is becoming global. It is a growing force with whom it is impossible not to take it into account the globalization process. The only definition of Islamic banking is the development of banking or banking activities ruled by principles in compliance with the Islamic principles (Sharia). Here, finishes the definition. In the current credit crunch context, Islamic banking seems to be an alternative to conventional banking for two main reasons: Interest fees are prohibited by the Sharia, and Riba which means excess, addition is prohibited. Nowadays, Riba is supposed to have ruled the global finance worldwide for decades, so Islamic banking appears as the White Angel, that even conventional banks are trying to insert themselves in the process! Nevertheless, in what measure Islamic banking may represent an alternative to conventional banking?
