Is Islamic banking applicable in today's economy?

After the baking crisis of 2008 and the collapse of financial markets, doubts have emerged on the capability of the modern financial model to sustain a healthy economy. With the failure of both capitalism and communism, some experts, especially in Muslim countries are looking at Islam to find an alternative model. Islam's strong prohibition of usury (Riba) in particular is seen as a new foundation for a healthy banking system and consequently a sustainable and fairer economy. Other Islamic institutions like zakat and waqf (endowments) have potential economical functions.

In recent years Islamic Banking for example, has been tried with some success in some of Muslim countries and even in Britain.
British Financial Services Authority estimates the assets controlled by Islamic banks at the global level to be $200-500bn which is growing at a pace of 10-15% per year. With prospect of about 12 million Muslims living in EU, Islamic financial and economical model is a feasible solution for the future. This week's Islam and Life asks: Are the principles of Islamic banking applicable in today's economy? Source