Document Details

Document Type : Article In Conference 
Document Title :
Assessment of Theoretical Underpinning for Islamic Banks and the Need for a New Approach after Three Decades of Experiment
تقييم المجهود التنظيري للبنوك الإسلامية والحاجة إلى مقاربة جديدة على ضوء ثلاثة عقود من التجربة الميدانية وأثر العولمة المالية على الصناعة المصرفية
 
Subject : Assessment of Theoretical Underpinning 
Document Language : Arabic 
Abstract : No one can deny the success of the Islamic banking industry from its timid beginning late seventies up to nowadays. The experiment aimed at offering an alternative to the interest-based practices condemned by the majority of Muslim scholars and Fiqh academies. The Islamic banking pioneers stressed the Profit & Loss Sharing (PLS) principle as a viable alternative to interest. However, after three decades of experimentation, what is the lesson to be learnt and how well the Islamic financial institutions (IFIs) have performed in accordance with the theoretical background proposed by Muslim economists and scholars? Most of Muslim economists agree to condemn IFIs because of their lack of enthusiasm to overcome the “mark-up phase” and tie up with the “PLS phase” on a much more serious manner. This disparity between the theory of Islamic banking and practice of Islamic banking and the critics directed to the experiment irritated me for sometime. After a mature and an in- depth thinking , I arrived to the conclusion of the necessity to rethink the theory of Islamic banking, to reshape the definition of an Islamic bank, and to determine what is the institutional pattern of IFIs we want. The present paper intends to propose another approach to this problem by way of reformulating the theory of Islamic banking where Islamic deposit banks will continue to rely on mark-up modes of finance, while another institutional setting similar to ‘investment banking’ or ‘banques d’affaires’ in the west need to be promoted as wholesale banking practicing PLS modes of finance such as Mudharaba, Musharaka. Finally, the paper intends to provide guidelines of Islamic banks to cope with the challenges imposed by financial globalisation. 
Conference Name : 7th International Conference on Islamic Economics 
Duration : From : 24-3-1429 AH - To : 26-3-1429 AH
From : 1-3-2008 AD - To : 3-3-2008 AD 
Publishing Year : 1429 AH
2008 AD 
Number Of Pages : 25 
Article Type : Article 
Conference Place : King Abdulaziz University, Jeddah 
Organizing Body : Islamic Economics Research Center 
Added Date : Thursday, July 1, 2010 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
محمد بوجـلالBoudjellal, Mohamed ResearcherDoctorate 

Files

File NameTypeDescription
 27226.pdf pdfتقييم المجهود التنظيري للبنوك الإسلامية

Back To Researches Page