US Treasury Secretary John Snow who held a meeting with Islamic banking officials in Dubai on Wednesday was also informed that “the number of Islamic banks increased from 176 in 1997 to 267 today,” according to AFP.
Snow “promised to work so that American regulations would not unnecessarily hamper the growth of Islamic banking in America.”
“Islamic banking officials who attended the conference said they welcomed Mr. Snow’s pledge to work with Islamic finance in America,” the statement said.
Islamic banking combines Islamic laws that prohibit interest payments with modern banking principles.
Murabaha is a classic practice of Islamic banking under which a borrower has to pay an extra amount agreed in advance. This amount is regarded as a “reward” for the risk taken by the bank.