An enquiry into the basic concept of banking as perceived by the spirit of Islamic economic justice (Ph.D. Thesis)

This thesis examines the validity of banking in an Islamic economy. Despite the existence of Islamic banking theory for fifty years and impressive growth in the number of banking institutions, many Muslim scholars still do not accept Islamic banking as being consistent with Islamic teachings. The thesis first outlines Islamic teachings pertaining to economic justice, the ultimate goal of Islamic principles and ideal result of an Islamic economic system. Borrowing and lending as business practices are intrinsically opposed to Islamic principles, or the spirit of Islamic economic justice. The same criterion of the spirit of Islamic economic justice is used to scrutinize financial institutions labeled as `Islamic', where there is a considerable difference between theory and practice. The ideal theory does not entirely satisfy Islamic ideals of economic justice. It is found that not only is there a considerable difference between the theory and practice of these institutions, but that eve