Islamic Banking And Finance in Theory and Practice: A Survey of State of The Art
Islamic Banking And Finance in Theory and Practice: A Survey of State of The Art
Author: Mohammad Nejatullah Siddiqi
Description: Mohammad Nejatullah Siddiqi’s survey of Islamic banking and finance, Islamic Banking and Finance in Theory and Practice, discusses the divergence between the theoretical framework and actual practices in the field. The paper highlights how Islamic finance has predominantly focused on credit-based instruments rather than equity-based systems like mudarabah and musharakah, which are more aligned with the goals of Islamic law (maqasid al-Shari'ah). It also calls for a reevaluation of Islamic financial products and a stronger emphasis on ensuring that these tools meet both legal and ethical objectives, ensuring justice, fairness, and social welfare in a modern economic context.
