Parameters of the Islamic Economic System

CAN, Mehmet (2009) Parameters of the Islamic Economic System. In: 1st International Symposium on Sustainable Development, June 9-10, 2009, Sarajevo, Bosnia and Herzegovina.

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Abstract

The Vatican's official newspaper Osservatore Romano said in an article in its issue of March 4, 2009 reported that Islamic banking system may help to overcome global crisis. The Vatican said banks should look at the ethical rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis. To understand economics and economic aspects of human beings in the light of Islamic Shariah, we should explain its objectives. All business and financial contracts in the framework of Islamic finance have to conform to the Shariah rules with the objective of helping to achieve the aims of the Shariah. Shariah refers to a code of law or divine injunctions that regulate the conduct of human beings in their individual and collective lives. In addition to some general rules there are some specific branches of these injunctions which are: matters of belief and worship; ethic, socioeconomic and legal systems; obligations; and prohibitions. Banking and finance are parts of economics or the economic system, as the rules governing activities of banks and financial institutions stem from the overall economic framework in which these institutions operate. It is, therefore, worthwhile to discuss the structure of Islamic economics under which the Islamic financial system is supposed to work. In this paper we discuss the fundamentals of the Islamic economic worldview having direct or indirect impact upon the business of Islamic financial institutions and markets.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Islamic Finance, Parameters
Subjects: H Social Sciences > HB Economic Theory
Depositing User: Users 4 not found.
Date Deposited: 01 Feb 2012 12:41
Last Modified: 02 Mar 2012 12:43
URI: http://eprints.ibu.edu.ba/id/eprint/131

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