•  
  •  
 

Abstract

Moving away from usurious lending, in which the borrower bears the risk of the loan, to almudaraba and participation, in which the two parties to the contract share its profits and losses, was the title of the emerging Islamic banking, where its project and its contracting system were prepared through individual initiatives. However, as soon as Islamic banks were established, professional considerations began to dominate the leadership of banking practice, specifically in the field of risk management. It led to a decisive transformation that would bring Islamic banks back into the Indebtedness system but through financing sales. Just as this transformation had its supporters, it also had opponents who saw in it a departure from the established theoretical path. The matter was decided in the fatwa institutions in favor of the new transformation, as they noted that the Murabaha sale to the person ordering the purchase provides the requested level of security for the Islamic banks, but the matter did not stop there, as some banks quickly prepared a contractual system that allows them to afford liquidity for customers, as traditional banks do. This paper aims to monitor the main trends in thought parallel to banking practice and to estimate the doctrinal frameworks and mechanisms by which funds are supplied to Islamic banks from the audience of financiers, and the frameworks and mechanisms by which these funds are invested with the relevant parties. Its approach to this is the critical extrapolation of jurisprudential consideration evolution and banking thought regarding banking practice over half a century. The research proposes a theoretical review that could establish new corrective paths.

First Page

3

Last Page

27

Download

Share

COinS