Dr. Rajesh Nayak, Director (training), Oman's College of Banking and Financial Studies, Oman stated that the Islamic Banking or Sharia-compliant banking is getting support from the bankers in the western countries. He was delivering a lecture on ‘Global banking scenario and challenges' at Mangalore office of the Indian Overseas Bank.

Under the Sharia/Islamic law, interest is prohibited. This concept therefore is based on risk sharing rather than risk switching.

The banking can work on two models, one in which the bank offers the capital and the customer offers his/her management skills, sharing the profit between themselves. Another concept works on markup of cost, that is the bank purchases and sells the product with a profit.

Mr. Nayak also stated that Sharia banking if introduced in India can co-exist with the existing banking system.