Guided by the Sharia laws Islamic banking is grounded on thelaws on the belief that all types of interest is forbidden.Investing in businesses that deal in business of pork or alcoholor those that lead to gossip such as media or are againstIslamic values such as pornography is completely prohibited.Speculative transactions are also banned in this law. Because ofa different way of running their financial system the regularbanking financial instruments cannot be used in Islamicbanking.However, the banking and finance in Islam do have the samemotive as the conventional banking which is to generate moneyfor the banking organisation which is by lending capital whilealso keeping within the boundaries outlined by the Islamic law.Instead of the basic principle which the conventional banks usethat is transfer of risk the Islamic banks follow the principle ofrisk sharing.The laws of Sharia vary from country to country. While insome countries they are liberal in other places they follow theexact interpretation of Sharia laws.