School of Oriental and African Studies, University of London

Islamic law governs all social and economic activities, and has long been hostile to modern and more western economic systems. There are instances where the shari`a provides mixed and somewhat contradictory rules regarding prohibited economic activity, such as that of gharar.

This thesis deals with the theory on which the concept of unlawful gain and legitimate profit in Islamic law was based, citing the views of (primarily traditional) jurists and

This thesis provides an in-depth description of the regulatory system governing commercial banks, finance companies, merchant banks, and Islamic financial institutions in Malaysia. The thesis will examine the important regulations separately with respect to each category for these institutions, their development over the years, the reasons underlying their introduction, implementation and change, their relevance, and their effectiveness. The capability of the regulatory system with respect to prior financial scandals and collapses is also considered.