Islamic Banking is a financial system that operates according to the principles of Islamic law, or Sharia. It prohibits the payment or receipt of interest, known as riba, and promotes risk-sharing and ethical investments. Instead of earning interest, banks earn profit through investments in assets or businesses that comply with Sharia guidelines. In Islamic Banking, financial products are structured in ways that align with Islamic values. Common practices include Murabaha, where banks buy goods and sell them at a profit, and Mudarabah, a profit-sharing agreement. This system aims to promote fairness, transparency, and social responsibility in financial transactions.