principles of islamic finance

Under Islamic law money is not considered as a commodity, and the conditions of exchanging money for money is considered to be a Usury in Islam and it is perceived as medium of exchange in Islam, so there should be commodity in the form of Physical expansion for it to be  allowed by Islam. 

The allowable two conditions for exchanging money for Money: it has to be hand-to-hand, and in equal quantity. This is what is known as a currency Exchange contract (‘aqd al-sarf). And any violation of that tradition it will result in either the two forms of Riba, Riba Al Fadhl or Naseea

Principle of  Qard Al Hassan means that when you lend to some, the person that you lent the money to he has to return it without an interest or profit, so if you lend someone 1000 dirhams in the principle of Qard Al Hassan he should return it with the same amount . So Qard al Hassan Yjaaz in Islam according.

The concept of the sharing of profit and loss in conventional banking is not present, but it is present in Islamic Financing in the form of Musharaka, because in Musharaka it is an agreement between two or more partners, whereby each partner provides funds to be used in a venture. Profits made are shared between the partners according to the invested capital. In case of loss, no partner loses capital in the same ratio (Wikipedia Musharaka). If the Bank provides capital, the same conditions apply, so the concept of the profit and loss sharing comes in this concept, if they make a profit they both share the profit and when the two parties make the loss they both share the loss in the company.

There are also another Islamic product that shares profit and loss which is Bai Salam Bai salam which means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract (Wikipedia Bai Salam).