Book Review by De Economist, vol. A.L.M. Abdul Gafoor, Interest-free Commercial Banking , Apptec Publications, Groningen, 1995.
Interest plays a central role in the Western monetary system.
This is the subject matter of the two books reviewed here. In the resulting banking system depositors entrust their money to the bank for safe-keeping and permit the bank to use their funds to grant loans. Capital is guaranteed but no interest is paid. Borrowers obtain their loans through the bank and they pay a fee for the services provided the bank. Banks in this system are service providers, whose main income is the fees they charge for the service they provide.