Conceptual Analysis of Current Islamic Banking Practices Based on the Maqasid al-shariah Doctrine
The rapid growth of Islamic Banking and Financial (IBF) institutions across the world forty years ago has indicated its viability as good alternative to current global financial crisis if only they operate under the demands of shariah. However, critical analysis of IBF institutions phenomenal growth indicates much demand by stakeholders about the level of shariah compliance in all its practices. Most studies on shariah compliance duel on the concept of interest-ire (riba-free). Our argument is based on conceptual analysis of the mos common components of banking practice across the world that always generate interest (riba in the practice of Commercial banking including Islamic banks. Therefore, this conceptual analysis argues that fractional reserve banking, fiat currency and interest-based debt transactions not only violates the doctrine of Islamic law but also prevents the attainment of maqasid al-shariah. The paper concludes that Islamic Banks operating under the current monetary framework, cannot achieve the objectives of Islamic law and therefore are not Islamic, since neither fractional reserve banking nor fiat currency can be legalize in Islam.
Sani Muda Dangulbi Arfah Saleh Aziuddin Ahmad Meera Ahamed Kameel Mohamad
University Putra Malaysia Selangor International Islamic Universiti College , Malaysia International Islamic University Malaysia
国际会议
2011 Academy for Global Business Advancement(AGBAs)8th World Congress(全球商务发展学会第八届国际会议)
大连
英文
375-381
2011-09-15（万方平台首次上网日期，不代表论文的发表时间）