How do Islamic Banks make money?

<p>To earn money without the typical <strong>practice of charging interest</strong>, Islamic banks <strong>use equity participation systems</strong>, which are similar to profit sharing. Equity participation means if a bank lends money to a business, the business will pay back the loan without interest and instead give the bank a share in its profits. If the business defaults or doesn't earn a profit, then the bank also doesn't get paid.</p>

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