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Not quite. The critical difference is that conventional banking allows interest and Islamic banking does not. Islamic banking does allow profit-sharing, which obviously looks a bit like equity. However, equity has other components (e.g. voting rights and last place in a liquidation) which aren't necessarily shared by Islamic banking instruments.
Duncan Robertson Sir,
I mean in sense of risk in investment of banks. Islamic banks having low margin than conventional because Islamic banks rely on his capital more than its customer deposits. Is it right sir? or clear my confusion .
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