ndividuals and communities that seek ethical financial solutions have been attracted to Islamic banking. It is clear from banking practice that Islamic banking is equally popular in most communities.

It is clear from above statements that Islamic banking is not only Islamic or specific banking but a system which provides more ethical and moral concept of financial solutions.

As stated by Muhammad (2013, pp.14) Islamic banking is a financial institution whose statutes, rules and procedures expressly state its commitment to the Principles of Islamic Sharia and to the banning of the receipt and payment of interest on any of its operations.

Further in a report by the International Federation of Accountants (2015) Islamic finance—or perhaps more accurately, Sharia-compliant finance is a form of finance in which the financing activity is in accordance with the principles of Sharia law, the moral and ethical code of the Islamic religion. Unlike conventional finance, Islamic finance prohibits all forms of interest for lending money (that is, usury), investments in businesses that provide goods or services considered contrary to Islamic principles, and selling things that one does not own (that is, short-selling). While these prohibitions are tied to the basic beliefs of Islam, and so have been applied for hundreds of years by Muslims, Islamic finance has only more recently manifested itself in financial products, services, and institutions. In the broadest sense, Islamic finance principles are intended to place some consideration on society as a whole – the impact that all financial activity has on the welfare of people and their community. Today there are a number of banks and other financial institutions, as well as units within conventional banks and financial institutions, that apply these principles.