The status of the currency is limited in the Islamic vision subject to value and means of exchange, but never be a good that is sold or rented. Thus, if Islam recognizes a monetary value within time, it is legitimate only in exchange of assets (hire purchase), not in situations of debt (credit in general). Money cannot by itself create money without the action of physical capital and work. Moreover, the relationship between these factors must be solidarity, and their remuneration shared equitably.
Thus, the philosophy of Islamic banks must mainly be based on these two principles:
- Purchases and sales in installment as an alternative to short and medium-term credit;
- Participation in the profits and losses as a mode of long-term financing, “no gain without sacrifice.” It is a formula very close to the Venture Capital.
Thus, the role of Islamic banks is to perform collection of deposits in the form of Mudaraba contracts and replace them for its customers by using methods of installment or participating financing, without forgetting other conventional banking services.
Resources of Islamic banks consist of a share of internal resources such as capital, reserves, profits, on the other hand external resources such as demand deposits, blocked accounts with participating remuneration or savings accounts and finally the project revenues and investments and management fees.