Islamic banks in Malaysia operate under Sharia law (the official religion in Malaysia is Islam). According to Islamic principles money is not considered a commodity, and therefore to require payment for their provision as debt (ribu) is considered a violation of Sharia. Thereby Islamic credit system is based on the principle of profit sharing on investment between the lender and the borrower. There are two types of credit transactions: mudaraba – when the financial resources of the company draw on deposit accounts and invest them in various projects in exchange for a strictly specified share of the profits, if it brings a loss, the loss rests solely with the borrower. The second system – Musharaka: investors are making investments pool of their savings and share the profits and losses according to the size of the share of each participant.