THE PREVALENT PRACTICES OF ISLAMIC BANKING
By Syed Nayyar Azam Saifi & Muhammad Zeeshan Farrukh
Abstract
Islamic Financial Industry is experiencing a good high pace and many Islamic financial products have been introduced in a very short span of time as compared to conventional financial products but in fact the present prevalent Islamic financial system, around the world, has been developed keeping in view the products of conventional banking in order to attain same results/profit margins in a Shari’ah Compliant way. Consequently, the product becomes Shari’ah compliant but the core attributes of Islamic Economic System i.e. Justice and Social Welfare etc. are overlooked by the Industry. In other words, the conventional thinking of banking has an existence in Islamic Banking and only profit maximization concept is being considered rather than the concept of profit maximization with social welfare. This paper discusses all of such concerns and highlights the flaws and issues in the prevalent Islamic banking system and proposes suggestion/solution in this regard. The current depression in the Capitalist System of Economy has proved that the only viable alternative and solution is the economic system derived in the light of Qur’an and Sunnah. Over the past few decades, all the efforts were devoted to Islamize the current concept of conventional system. A model for Islamic Banking has been suggested that would be independent from the systematic mode of conventional thinking and regulations. The dissemination of charity, accrued by the Islamic Banks is a matter of great concern that fails to create a just society which is the major purpose of Islamic banking.
Contents
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