Publication:
الوساطة المالية المصرفية الإسلامية

Research Projects

Organizational Units

Journal Issue

Abstract

Since the evolution of Islamic financial mediation, there have been speculations of its inability to Islamize banking transactions as they were originally founded on interest and therefore, that mediation will be nominal. On the contrary, some believe that its advantages justify its disadvantages. This research aims to demonstrate the evolution of financial mediation, explain its objectives, and highlight its nominal nature, significance, roles, functions, sections and elements. The research adopts the historical approach beside the inductive analytical approach. The research concluded that banking transactions existed in all ancient civilizations, and Islam encouraged and developed it, and that it did not include interest (Riba) at all times even before Islam. Moreover, financial mediation in Islamic banking is an instrument for developing a society and its well-being. However, its significance does not justify its nominal implementation; rather, it should actually be implemented by actual Islamic instruments.

Description

No 17

Keywords

financial intermediation, Islamic banking

Citation