In any society, the main function of a bank is to act as an intermediary, mobilising funds from those who have a surplus (depositors) and allocating these to those in need of funding (borrowers). Where banks operate on an interest basis, this can lead to the inadvertent exclusion of customers who do not wish to

Non-interest banking transactions are based on tangible assets and real services. The table below shows some of the principles and practical differences between non-interest and conventional banking. Conventional Banking   1. Money is a commodity besides being a medium of exchange and store of value. 2. Time value of money is the basis for charging interest