Comic explainer: how does Islamic finance work?

Islamic law strictly forbids usury, meaning loaning money at interest. (Christianity forbids usury as well, but redefined it in the 16th century to mean only loaning at high interest rates – think payday loan companies.)

What does a banking system look like when banks can't make money off your savings account, nor profit from your mortgage? The University of Queensland’s Mamiza Haq explains.

This means, unlike in conventional banking, if a bank loans you $500,000 to buy a house, and the house's value drops to $400,000, the bank is only entitled to be repayed $400,000. But if your house increases in value, your debt to the bank does too.

There are other differences as well – for example, you would not be able to borrow money to build something that is against Islamic law, such as a casino, a distillery, or a robot that steals from orphans.