An economy cannot function without recognizing the vital importance that the owner of wealth must be compensated for both the time value of money and the risk that always is implied when he lends his money to someone else. When this is prohibited, under the theory that charging interest is somehow evil, then there is no reason for the holder of wealth to rent it out at all, even to someone who may have a very valid justification to borrow it.
The flip side of debt is equity, but equity is not at all suitable for many transactions, such as a home loan. This would just lead to a concentration of wealth. People who start with nothing could never accumulate any property.
The way that Islamic banking gets around that religion’s prohibition on charging interest is to repackage the interest, call it something else that can pass for what is allowed under the religious authority. For example, instead of charging monthly interest for an installment loan, the interest is lumped into a one-time fee.
I would also add, that in my experience, Islam also tends to foster a fatalistic mindset, such that when a bad thing happens, it is not anyone’s fault, but only “Allah’s will”. This makes it harder for people to accept responsibility for their decisions and policies. I have seen it myself in my business relationships. I don’t know how this translates into how frequently banks fail that are run by followers of the Religion of Peace as compared to those run by infidels (and especially by Joooos), but I personally know one 5 star money manager who fled an Islamic country because he found it far better to do business in the west than there for that exact cultural reason.
We have you on record as saying that our current system works well. You don’t like Islamic banking, and you think people should be paid interest when they put their money at risk. I really don’t know what you’re complaining about.