I agree with Dr@ Ashique Ali.

Islamic banking (i.e. banking that follows Sharia) exists, but the claim that it is completely ethical is controversial to say the least. Muhammad Akram Khan, former Deputy Auditor General of Pakistan, has written extensively on this; here are links to an article and information about his book:

https://pdfs.semanticscholar.org/eb2c/34a720648d338c2ff89cd6f9065430cfa7fd.pdf

https://econpapers.repec.org/bookchap/elgeebook/15292.htm

Interestingly, Islamic banks refuse to invest in businesses that produce, process, or sell pork products, which refusal can only be regarded as an ethical practice if one regards the Sharia prohibition of pork as an ethical principle in the first place.

What's wrong with https://www.wealthsimple.com/en-ca/halal-investing?

Usually, the concept of ethical banking is associated not only with the economic development of the society where it operates, but also with the social perspective, where the option of financing those organizations or people excluded from traditional banking is essential. The moments of crisis always act as an engine to obtain a bank more committed to society. In addition, from the point of view of Islamic population and economic growth, everything presages the development of it. Currently, the AAOIFI already performs an index of entities on compliance with Islamic rules. The separation between the Islamic Banking and the Ethical Banking, seems reasonable, being two different things, since the main function of the bank is to redistribute the resources between the savers and the plaintiffs, and the ethical bank must consider not only the realization of their main work, but invest in social function projects.

@Raymond Iosif David Arye Mendelovits

RE: What's wrong with....

Granted, there are many ethical and beneficial investments that are possible under Islamic banking. However, what's wrong there lies in some of the things that are limited or excluded because they are regarded as haram. Even if I disagree, sure, I can at least appreciate some of the reasons for not investing in breweries, but pork is another matter. Also, the injunction against interest seems disingenuous, since Islamic banking must employ mechanisms that are functionally equivalent. Loaning money has overhead costs and whether that cost should be paid for by charging "service fees" or requiring shares to be bought at above their face value (or whatever) instead of "interest" seems like a verbal dispute.

Yes Islamic banking do exist but few weakness have been pointed out by certain scholars that need further improvements. A much better in future is expected as Islam is a complete code of life and guides the humanity in each and every aspect of life.

The necessity of financial institutions based on religious sensitiveness is especially felt by the independence of Muslim communities. This development was accompanied by increasing wealth of the Middle Eastern countries which have

rich oil sources. However, over the time the structural development continued by the establishment of different type of

Islamic financial institutions such as: Islamic investment banks, intergovernmental development. It is known that Islamic banks deal with rate of return while conventional banks deal with interest rate.

Islamic banking exists in reality. It is the banking system that derives the principles of its practices from the business and commercial aspect of the Shariah law. Thus, it is not a mere nomenculature. However, it is still an evolving system. It is not yet developed as that of the conventional banking.

Islamic banking exist but there is lot of controversial literature https://blogs.tribune.com.pk/story/194/is-islamic-banking-really-islamic/

The further question is how can we define an ethical banking. Several scholars have examined the dimensions of ethicals business from Islamic perspective, i.e. Trusteeship, fairness, adl, benevolence, ability, etc (please refer to Rice 1999, Beekun and Badawi 2005, Uddin 2003). In my opinion Islamic banking goes further beyond ethical things. For example it is againts the speculation. It has qardh and qardhul hasan, despite the proportion is very low. It cannot reprice the margin in murabaha. And penalty charge must be recognized as a non revenues item. It also promotes cooperation (Chapra,2000). All in all I think Islamic banking covers wider aspect not only the ethical things.

I only like to mention efficiency of islamic banks according an article written by Peter Wanke ( https://doi.org/10.1016/j.intfin.2016.07.004 ):

This research shows us the most efficient islamic bank is Bank Asya, a Turkish bank, is ranked first with a score in 2014 of 0.621 and The least efficient bank is Elaf Islamic Bank, a bank from Iraq that in 2011 scored 0.353. Thus, the efficiency of the Islamic banking system in countries recently subjected to war is low when compared to normal economies.

Instead of calling it "Islamic banking", let's rather call it "non-interest banking". Now, the problem is solved.

All regulated banking activities are "ethical" because all banks follow their regulator's guidelines of "ethical" banking practices.

I understand that banking academics have a different view of what "ethical banking" should be, however, it is important to understand that banks do not have to, and will not, conform to our idea of what ethics should be. Banks are only accountable to their shareholders and regulators, in the real world.

I do not see the logic for the need to equate "Islamic banking" with "ethical banking". Islamic banking is neither ethical nor unethical. Ethics is not the gist that led to Islamic banking. Moreover, the underlying theory behind Islamic banking is clearly religious not ethics.

I will follow Dr peterson 's answer

The natural resources of land and the location of real estate still serve in every human economy as banking collateral of the accounting system, since Sumer (see: attached PDF). This social fact contradicts, for example basic Biblical statements, that nature is not to be privatized. Ethical banking would require a full economic reform of the accounts of human society, according to the principle of eco-logical stewardship, which is also requirement of Islami ethics and the science of Qur'an. Making money from money, in terms of privatizing and accumulating vital natural resources, is the logical foundation of our accounting system. Taxing this economic rent (unearned income) as public revenue would be a first step to arrive at a more ethical banking system, which balances ownership and stewardship for human welfare and reducing distributive injustice.

Present day banking is rooted in the notion of infinity of wealth-accumulation (financial operatives, institutions outside of fixed methods of wealth) , which in the Moslem world is achieved through resources (mainly taken by the rich, surely?Is redistribution of wealth in the Islamic world ever likely to occur structured as it is on archaic knowledge gathering-such as Sharia) and/or investment in the Western system. The Western method, by which Islamic countries also benefit, has resulted in an expansion in wealth but also in numerous pitfalls.

I agree with Dr@ Ashique Ali.

Please go through the following link I hope your concept will be get clear

Article Muamma (conundrum) of Riba (Interest and Usury) in Major Rel...

Islamic Banking do exist but the question is if is 100% as per shairah. Because of differences among Islamic jurist most of the laws are not certain.

For example, there is a confusion regarding investing in a company which during regular course of business get some loan(traditional) or in simple deals in interest. Few islamic jurist say it is permissible as long such interesting is contributing a minor share in the total profit of the firm, some says that it is allowed as long as it is lesser than 1/3 of the profit share... In fact most of the sukuk are being issued by firms who certainly have done dealing in interest (received or given)..

As per the shairah law, strictly speaking this should not be allowed. But if you will start following this, then you fill hardly find a company which perfectly immune to interests.