Abstract: In the context of the post-crisis transformation of global finance and the search for sustainable development models, Islamic banking demonstrates dynamic growth, becoming a significant element of the global financial architecture with assets exceeding USD 3 trillion. Its alternative paradigm, based on the prohibition of usury and a link with the real sector, attracts the attention of researchers and policymakers. Despite the growing role of Islamic banking, its internal logic and competitive positions are often viewed fragmentarily. There is a lack of systematic analysis combining theoretical foundations, an assessment of strengths and weaknesses, and their embodiment in financial statements to confirm the qualitative difference of this model from the conventional one. Existing research focuses either on the religious-legal aspects or on the macroeconomic significance of Islamic finance. What remains insufficiently studied is a comprehensive structural and functional analysis demonstrating how doctrinal principles (partnership, prohibition of Riba) are materialized in specific business processes and balance sheet structure. The aim of the article is to conduct a structural and functional analysis of Islamic banking as an alternative paradigm of financial intermediation by identifying its key features, assessing their competitive positions using the SWOT method, and modeling the balance sheet structure to reveal fundamental differences from the traditional model. The article identifies three key features of Islamic banking: 1) a partnership-based financing model (Musharaka, Mudaraba) replacing debt relations; 2) the Shari’ah supervision system as a unique corporate governance institution; 3) a specific balance sheet structure with investment accounts in liabilities and assets linked to the real sector. The conducted SWOT analysis of each feature revealed their strengths (resistance to interest rate shocks, high trust) and weaknesses (operational complexity, limited liquidity instruments). The developed hypothetical balance sheet model and its comparison with a conventional bank proved that the Islamic model operates on the logic of “asset-partnership-profit” as opposed to the “debt-interest” logic. Islamic banking is not a modification but an alternative paradigm of financial intermediation. Its viability is ensured by a unique combination of partnership relations, religious legitimacy, and a link with real assets, which opens prospects for integrating its principles into the global sustainable development agenda.