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Arabic Title

ارتباط التّّمويل الإسلامي بتوليد النّّقود: إشكالات شرعيّّة ومُُقترح إصلاحي

Abstract

This study highlights a fundamental problem confronting Islamic banking, namely the dominance of debt-based contracts, such as Murābaḥah and Tawarruq, at the expense of genuine partnership-based contracts, particularly Mushārakah and Muḍārabah. This dominance has, in turn, given rise to persistent criticism concerning the Shariah legitimacy of Islamic banking products. The study proceeds from the premise that this departure from the objectives (maqāṣid) of Islamic economics is not merely a technical or managerial choice, but rather an inevitable consequence of Islamic banks operating within a fractional reserve banking system and their inherent involvement in the mechanism of money creation. Using a descriptive-analytical methodology, the study demonstrates how banks’ creation of deposit money may compel them to avoid risk in order to maintain liquidity and meet their financial obligations. Consequently, profitand- loss-sharing (PLS) financing may become a form of risk that is institutionally difficult for banks to accommodate. This may help explain Islamic banks’ tendency toward secured debt-based instruments that, in economic substance, may differ little from interest-based financing. The study further examines the complex Shariah issues arising from this framework, most notably the question of whether investment accounts can properly be characterized as Muḍārabah or Wakālah when the bank, in practice, creates new money to finance its activities rather than investing funds actually deposited by customers. The study also addresses the broader macroeconomic implications of this monetary structure, including inflation and the erosion of social justice. The study concludes that genuine reform may not be achieved merely through the Sharīʿah-compliant restructuring of existing banking products, but may instead require a fundamental restructuring of the banking system itself. The authors propose, as a reform framework, a complete separation between the function of money creation, which should be exclusively vested in the state, represented by the central bank, and the function of financing, which should be entrusted to genuine investment institutions that do not possess the authority to create money. Such a separation may constitute a fundamental prerequisite for enabling Islamic banks to implement Shariah-based partnership contracts effectively and to realize the objectives of Islamic economics in promoting economic development and social justice.

First Page

89

Last Page

107

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