Methods of fifinancing tradititional and Islamic commercial banks for investment and the difffference between profifit and interest in (Bank of Erbil and Tigris and Euphrates Bank) in Sulaymaniyah Governorate as a model

Abstract

There are fundamental differences between Islamic and traditional commercial banks in terms of principles, objectives, and services provided. As the activity of commercial banks is based on lending money with interest that made money a commodity that is sold for a financial fee and a specific increase, the interest system on which commercial banks rely to make a profit is a usurious system that is forbidden in Islamic law, while in an Islamic bank, the investment process takes place by exchanging a commodity for money or a service for money Or the benefit of money, which is a legitimate netting contract. This research aims to identify the differences in methods of financing and investment mechanism in traditional and Islamic commercial banks in (Bank of Erbil and Tigris and Euphrates Bank) in Sulaymaniyah Governorate as a model. To achieve the aim of the research, the descriptive and analytical method was adopted by analyzing profit and interest data and indicators, in addition to the case study method. The results of the research concluded that the profits and interest of commercial banks are greater than that of Islamic banks. However, Islamic banks are credible and their dealings are legitimate. Keywords: investment, profit, interest, traditional commercial banks, Islamic banks.