The concept of Islamic banking finance is characterized as a banking concept that complies with divine law in true spirit and as financial methods that do so under the Shari'ah . Every Islamic financial activity must adhere to Profit and Loss Sharing Principle, Charity (Zakaat), Prohibition of interest (Riba), gambling (Maysir), investing in forbidden (Haraam) activites and informational asymmetry (Gharar) in order to be deemed Shari'ah compliant. The Debt-financing principles (Murabaha and Ijarah), Profit-and-loss-sharing-financing principles (Mudarabah, Musharakah) and services principles (Wadilah, Wakalah) has made Islamic financial system a better alternative than traditional financing system. Also, Sukuk (a capital market instrument) further strengthen the Islamic financial system thus making it more stable from its counterpart.