ENGLISH: Rethinking Ribā and the ‘Islamic’ Banking Experimentation

• DOI: 10.51411/rahat.5.2.2021/358
• Publication Date: 2021-08-08T14:05:40Z
• Authors: Waqas Ali Haider; Muhammad Arsalan...; Dr. Abdul Ghaffar
• Keywords: Intermediation; Allocative efficiency

The efficiency of a financial intermediation system is assessed by its ability to achieve allocative efficiency, asset transformation and the subsequent economic development. In case an Islamic Banking Finance as alternate adherence injunction Islam also critical. A critical appraisal state contemporary finance (IBF) reveals that IBF has neither been able aspirations rhetoric, nor efficient in terms This paper intuitive pursuit explore sense established principles IBF, reasons persistent divergence being accused be based on ruses sophistry. Disentangling varying viewpoints, underdevelopment attributed misinterpretation Ribā, which explicated through narrow fiqhi legally deterministic approach. Deeming ‘a collaborative dynamic Ijtihād’ elixir, this insists exigency revisiting definition Ribā Ijtihādi effort – i.e. incorporates modern modes cooperation ecosystem. articulates agency theoretic framework eschew expropriation wealth, assure protection property rights, sustain stability