How has Islamic banking redefined lending to deal with Islam's prohibition of usury?

What will be an ideal response?

Islamic banking has found alternative mechanisms for encouraging the flow of funds from savers to borrowers through banks that pay no interest on deposits, or loans. This provides savers with access to their liquid assets, while capturing the lower transactions costs and risk sharing associated with depository institutions and other financial intermediaries. On the lender side, the bank is entitled to a share of the gains the borrower generates from the loan (e.g., from investing in capital or some other physical asset), or purchases goods on behalf of the borrower. Since the bank benefits from economies of scale, it is able to generate profits by negotiating lower prices (or lower per-unit cost) than an individual could.