What is the term for Islamic banking practices that avoid interest-based transactions?

Explanation

– Islamic, or Shariah-compliant, banking refers to financial practices structured to avoid interest-based transactions (Riba), instead relying on profit-and-loss sharing arrangements and asset-backed financing.
– This system has grown substantially in recent decades, with dedicated Islamic banks and windows now operating across many countries, including Pakistan.
– For exams, note that common Islamic banking instruments include Murabaha (cost-plus financing) and Mudarabah (profit-sharing partnership).