Publication:
Reviving the ethics of Islamic finance
Abstracts views
62
Views & Download
36
Date
2010
SDG:
Abstract
When it comes to definitions of ethics, and business ethics in particular, we have relied in this paper on a quick survey of the literature. We also referred to other writings to explain how interest-based lending escaped religions morality in the west. After providing an Islamic perspective of ethics and business ethics, the article directs itself to the moral responsibilities of system participants. Naturally there is a great deal of soul searching to do and there are tough questions that must be answered by everyone. In this regard, more questions than answers are provided. As a result, the Islamic finance system is found to have deviated from its own ethics and must put some efforts in their regaining. In order to gain the ethics of Islamic finance, the article proposes some modifications in the current system, with a special attention on the process of certification of members of Shari'ah boards before their appointment. In addition, a new system of human resource development is proposed, based on comprehensive treatment of shortages in both knowledge and skills. Rating agencies are called upon to introduce the Shari'ah aspects in their rating systems and specific elements have been proposed in this regard.
Keywords
Ethics , Finance , Islamic finance , Islamic banking , Shari'ah
Citation
Al-Jarhi, M. A. M. M. (2010). Reviving the ethics of Islamic finance. MPRA Paper, 66732, pp. 1-45.
Publisher
Munich University Library