Because Islamic finance follows different legal and economic principles, its profitability will not always match conventional banking exactly. In some transactions it may earn more and in others less.
If management insists that every Islamic product reproduce the same outcome as a conventional product, pressure builds to use artificial devices instead of genuinely Islamic structures.
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Islamic Banking: Operational Mistakes and the Way Forward
Because Islamic finance follows different legal and economic principles, its profitability will not always match conventional banking exactly. In some transactions it may earn more and in others less.
If management insists that every Islamic product reproduce the same outcome as a conventional product, pressure builds to use artificial devices instead of genuinely Islamic structures.