What benefit do Islamic, non-usurious banks reap, and what is their interest? And is what they take in exchange for the service considered usury? And what are the usurious transactions in Islam?

Praise be to Allah. The interest system in commercial banks is a usurious system that is prohibited, based on lending and borrowing with interest. As for Islamic banks, they rely on permissible transactions such as buying, selling, speculation, and legitimate investment, in addition to fees for money transfers and benefiting from exchange rates.

The fundamental difference: A commercial bank lends money with a fixed interest rate and guarantees the principal capital, while an Islamic bank invests money in legitimate projects with profit and loss sharing, without guaranteeing the principal capital.

Prohibited usurious transactions include: lending and borrowing with interest, currency exchange with deferment, exchanging gold for gold with an imbalance or delay, and financial dealings linked to usurious loans such as discounting commercial papers, interest-bearing savings accounts, investment certificates with predetermined returns or prizes, and late payment penalties.

Islamic banks have begun to grow and prosper because they achieve lawful profit and avoid the harms of the usurious system.