Editing Islamic banking and finance (section)

====20th century====
{{further| Islamic economic jurisprudence}}

In the middle of the 20th century, some organizational entities were found to offer financial services complying with Islamic laws. The first, experimental, local Islamic bank was established in the late 1950s in a rural area of Pakistan which charged no interest on its lending.<ref>Wilson, R. (1983), Banking and Finance in the Arab Middle East, St Martin's Press, New York.</ref><ref>Cengiz Erol, Radi El‐Bdour, (1989) "Attitudes, Behaviour, and Patronage Factors of Bank Customers towards Islamic Banks", International Journal of Bank Marketing, Vol. 7 Iss: 6, pp.&nbsp;31–37</ref>

In 1963, the first modern Islamic bank on record was established in rural [[Egypt]] by economist [[Ahmad Elnaggar]]<ref name="IFDCS">{{cite web |last1=Jamaldeen|first1=Faleel |title=Key Sharia Principles and Prohibitions in Islamic Finance |url=http://www.dummies.com/how-to/content/islamic-finance-for-dummies-cheat-sheet.html |access-date=24 July 2016}}</ref> to appeal to people who lacked confidence in state-run banks. The profit-sharing experiment, in the [[Nile Delta]] town of [[Mit Ghamr]], did not specifically advertise its Islamic nature for fear of being seen as a manifestation of Islamic fundamentalism that was anathema to the [[History of Egypt under Gamal Abdel Nasser|Gamal Nasser regime]]. Also in that year the Pilgrims Saving Corporation was founded in Malaysia (although not a bank, it incorporated basic Islamic banking concepts).<ref name=IFDCS/>

The Mit Ghamr experiment was shut down by the Egyptian government in 1968. Nonetheless, it was considered a success by many,<ref>{{cite book
|last=Kepel
|first=Gilles
|title=Jihad: The Trail of Political Islam
|year=2006
|publisher=I.B. Tauris
|pages=77
|url=https://books.google.com/books?id=OLvTNk75hUoC&pg=PA61
|isbn=9781845112578
}}
</ref> as by that time there were nine similar banks in the country.<ref name="nine banks">{{cite journal|last1=Ariff |first1=Mohamed |title=Islamic Banking |journal=Asian-Pacific Economic Literature |volume=2 |issue=2 |date=September 1988 |pages=48–64 |doi=10.1111/j.1467-8411.1988.tb00200.x |doi-access=free }}</ref> In 1972, the Mit Ghamr Savings project became part of Nasr Social Bank, which as of 2016 was still in business in Egypt.<ref>{{Cite web|url=http://nsbbank.weebly.com/|title=بنك كل المصريين|website=بنك ناصر الاجتماعي ( NSB )|access-date=13 April 2017}}</ref>