Islamic Banking and Islamic Investment In the midst of the current financial crisis, Islamic banking & finance stands at a crossroad. After at least a couple of decades of its close association with the Western capitalist institutions, Islamic financial thinkers are questioning close cooperation between Western investment banks and Islamic financial institutions. While, in theory Islamic banking and finance has a lot in common with Western movement of ethical finance and socially responsible investing, Islamic finance in practice has chosen to be in bed with the mainstream Western banks and financial institutions. There is a growing realisation that this trend is not sustainable in future.