Instability of Interest Bearing Debt Finance and the Islamic Finance Alternative

Shaukat, Mughees

doi:10.12816/0015020

Cited by 6 publications

(1 citation statement)

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“…Money is not capital, not even representative of capital. It is only potential capital which requires the service of the entrepreneur to transform the potentiality into reality; the lender has nothing to do with the transformation of money into capital and with using it productively" (Shaukat & Alhabshi, 2015). The substance of money therefore is a value in the instinctively social convention in the form of a thing that are valuable, portability, durability, divisibility, considerably limited in supply and uniformity but inseparable from its physical or numerical form.…”

Section: Analysis: Maqasid Al-shariah and Monetary Regimementioning

confidence: 99%

Maqasid Al-Shariah Philosophy in Monetary Regime Towards Inclusive Sustainable Growth

Omar¹,

Sari²

2019

IJIE

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This paper studies on the Maqasid al-Shariah philosophy with the aim establish an appropriate Islamic monetary regime in achieving the aspiration of Shariah that promote inclusive and sustainable growth of the ecosystem.From the analysis, this study shows that Islamic monetary mechanism and instruments as well as Islamic financial institutions (IFIs) operations are still exposed to the practice that are prohibited in Islam and also influenced by monetary policy tools and transmission channels set by the Central Bank. The study supports and affirms the establishment of an Islamic monetary system that transmits the monetary policy through channels with interest free and risk sharing Islamic instruments. For that, an equitable distribution of wealth for social Islamic justice as well as a balance inclusive and sustainable economic well-being would be attained.

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Section: Analysis: Maqasid Al-shariah and Monetary Regimementioning

confidence: 99%