Comparison of Islamic and Conventional Financial Systems: Advantages, Disadvantages and Integration Prospects

This study compares the Islamic and conventional financial systems, highlighting their advantages, disadvantages, and prospects for integration. While conventional finance offers flexibility, product diversity, and accessibility, it is prone to financial instability and may contribute to socioeconomic inequalities. In contrast, Islamic finance emphasizes ethics, fairness, and stability through risk-sharing and asset-backed transactions, but faces limited product availability and regulatory challenges. Integrating both systems can enhance financial inclusion, promote ethical finance, and foster economic sustainability. This study suggests that regulatory support, infrastructure development, and public awareness are key to successful integration