Introduction

Abstract

There is no denying the fact that the institution of interest is the backbone of the conventional economy and finance. The overwhelming domination of the interest-based system in global economic and monetary affairs, however, does not necessarily mean that it is the best mechanism, or that any future attempt to replace it with another system would seriously disrupt the prospects for business, investment and economic growth worldwide. Nothing succeeds like success, though conventional finance falls far short of perfection. There are some grave reservations and strong caveats concerning the moral and market-based credentials of the conventional system. In general, conventional banking and finance institutions tap funds from small-time investors and provide them to big borrowers for undertaking multi-billion dollar projects. They overlook the finance and venture capital needs of middle- and lowerincome groups who want to initiate projects, ensuring more sustainable resource management and enhancing the socio-economic welfare of the people.