How Islamic Banks are Spared from Financial Crisis of 2008

This study explores how Islamic banks were able to avoid the financial crisis of 2008 by following Sharia law and implementing different banking practices. Islamic banks, which operate based on profit and loss sharing and do not charge interest, were not involved in the subprime mortgage market that led to the crisis. While they were still affected to some extent, Islamic banks were able to recover more quickly due to their strong foundations.