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The study examines concerns regarding Islamic finance legislation in Ethiopia. Using a qualitative method, the study investigated the current legal and regulatory frameworks regarding Islamic finance and the challenges facing Islamic financial institutions in the country. In the study we conducted semi-structured interviews with 23 respondents, including executives, boards of directors, regulators, managers, shariah board members, and legal scholars familiar with the country's laws. The study's findings indicate an urgent necessity for an inclusive and robust legal structure specifically designed for the unique characteristics of Islamic financing. Enhanced supervisory oversight is essential for ensuring adherence to Sharia principles. Furthermore, the research findings demonstrate how important it is to set up a separate supervisory body within the National Bank of Ethiopia to keep an eye on Islamic financial institutions. Lastly, the study highlights the significance of having qualified professionals and Sharia scholars in Islamic financing. Integrating Islamic finance education into universities can enhance capacity-building for regulators, scholars, and finance professionals.

In this study, Banca Etica, which operates in Europe within the scope of ethical banking practices, and participation banks in Turkey were compared in terms of business ethics. Ethical banking is an approach based on observing social, environmental and ethical responsibilities in the provision of financial services. Banca Etica and participation banks apply these ethical principles in different ways. Banca Etica focuses on social and environmental sustainability, transparency and community participation. The bank offers its customers interest rates determined in line with ethical principles and invests in social responsibility projects. Drawing attention with its transparency and accountability policies, Banca Etica regularly reports the effects of its investments and loans and shares them with the public. Participation banks in Turkey adopt interest-free banking principles in accordance with Islamic finance principles. These banks, which serve their customers by offering profit-loss sharing models and products that comply with Islamic finance rules, focus on social responsibility projects such as social justice and helping the poor. Participation banks' transparency regarding sharia compliance assures their customers that their transactions comply with Islamic finance rules. As a result, both types of banks operate in line with ethical principles, but their implementation approaches and areas of focus differ. These differences determine customers' preferences and banks' contributions to society and the environment.