Profitability of Islamic PLS Banks Competing with Interest Banks: Problems and Prospects ربحية البنوك الإسلامية المشاركة في المنافسة مع البنوك ذات الفائدة: المشاكل والآفاق

Volker Nienhaus ()
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Volker Nienhaus: Department of Economics Bochum University, West Germany

Journal of Research in Islamic Economics, 1983, vol. 1, issue 1, 31-39

Abstract: In many books on Islamic economics and banking published during the 1960s and early 1970s, Islamic banks are interpreted as financial institutions which base their whole "loan" business on the principle of Profit and Loss Sharing (PLS) with the entrepreneurial partners. The authors of these books usually tried to demonstrate the allocational and distributive superiority of an interest-free Islamic economy in which the conventional interest-based banking system is replaced by a system of Islamic PLS banks. --

Date: 1983
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