What's the difference between conventional and Islamic banking?

The primary difference between conventional banking and Islamic banking lies in their underlying principles and practices.

Conventional banking operates on an interest-based system, where banks provide loans and charge interest on the borrowed amount.

In contrast, Islamic banking adheres to Sharia law, which prohibits interest. Instead, it promotes risk-sharing and ethical investments. Islamic banks offer financial products that are asset-backed and structured around profit-sharing models.