Explains how un-Islamic elements could be removed from current banking practices to create a system that is both viable and acceptable to Islam. Presents a model of the commercial bank lending operations in which the "interest" charged by the bank is considered to consist of six distinct components: interest, cost of services, cost of overhead, a risk premium, profit, and compensation for inflation. Traces the role played by interest in the lending operation and demonstrates that it is possible to remove the interest component from banking without resort to drastic measures. Presents a complete interest-free commercial banking system that would be practicable in strictly Muslim countries, nominally Muslim countries, and countries where there is a Muslim population who wish to avoid dealing in interest. Traces the history of Islamic banking; discusses current practices; and offers suggestions for overcoming problems that are being caused by current Islamic banking practices. Bibliography; index. Groningen: Apptec Publications

ISBN 90-802354-1-5, xii+86 pages, 1995