Today’s Islamic Banking
Some of the salient features of Islamic Banking would be summed up as:
Economic Well being: While allowing individuals, the right to seek his or her economic well-being, Islam makes a clear distinction between what is lawful (Halal) and what is forbidden (haram) in pursuit of such economic activity. In broad terms, Islam forbids all forms of economic activity, which are morally or socially injurious. This is the main theme behind today’s Islamic Banking concept.
Ownership: While acknowledging the individual’s right to ownership of wealth legitimately acquired, Islam makes it obligatory on the individual to spend his wealth judiciously and not to hoard it, keep it idle or to squander it.
Profits & Losses along with dispensation: While allowing an individual to retain any surplus wealth, Islam seeks to reduce the margin of the surplus for the well-being of the community as a whole, in particular the destitute and deprived sections of society by participation in the process of Zakat.
Wealth Distribution: While making allowance for the ways of human nature and yet not yielding to the consequences of its worst propensities, Islam seeks to prevent the accumulation of wealth in a few hands to the detriment of society as a whole, by its laws of inheritance.
Social Justice: Viewed as a whole, the economic system envisaged by Islam aims at social justice without inhibiting individual enterprise beyond the point where it becomes not only collectively injurious but also individually self-destructive.
With above points, could we say that modern day Islamic Banking is up to these points!!!!!