Islamic banking (Ph.D Thesis)

The work is an examination of Islamic banking and the role of interest in Muslim society. Despite the fact that there was no apparent agreement among economists as to why interest should be paid, it was almost unanimously held that interest is necessary for banking and necessary for financial and economic development. The writer delves into the controversial arguments justifying interest, stating that the principles of Islam should be set aside as they stand in the way of progress in the financial world. The author points out that Muslim scholars note that if Allah forbade interest but allowed PLS (profit-loss-sharing), then the latter must lead to the achievement of greater financial and economic development. These scholars continue to seek in the Koran and the sunna a way of banking and development that comply with the shari`a. These scholars have looked at the historical practices of the Prophet Mohammed, his companions and early followers and found alternatives to interest t