Document Details

Document Type : Article In Journal 
Document Title :
The Islamic Bank : Merchant or Intermediary?
البنك الإسلامي : أتاجر هو أم وسيط مالي
 
Subject : Discussion Forum 
Document Language : Arabic 
Abstract : The paper shows that the motive for the above question is that prevailing laws differentiate between obligations of two types of institutions: mercantile institutions and those of financial intermediation. Certain activities may be permissible for the former institutions and not the latter. But from a Shariah stand point, no such differentiation is entertained. What is permissible or not is equally applicable to all economic entities, hence such a question is irrelevant.. The economic justification for differentiating mercantile from financial intermediary institutions is that the latter need to match the risks of their assets and liabilities. The paper finds this matching much less urgent in an Islamic bank model which is based on the principle of al-mudareb-yudareb (manager/recipient of funds on profit-sharing basis, assigns the funds to another on the same basis). The paper also shows that early Muslims have known financial intermediation through the madarabah contract. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 10 
Issue Number : 1 
Publishing Year : 1418 AH
1998 AD 
Number Of Pages : 7 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
محمد علي القري MOHAMMED ALI ELGARIResearcher  

Files

File NameTypeDescription
 21053.pdf pdf 

Back To Researches Page