Theory, Practice and Education
Edited by Mohamed Ariff and Munawar Iqbal
Mohamed Ariff and Munawar Iqbal 1.0 INTRODUCTION This book is a compilation of studies of eminent scholars in the field of Islamic finance to bring to the readers a book that can be termed a foundation source book on Islamic banking or financial institutions. The book aims to bring to serious students and professional practitioners of Islamic banking a single volume of writings on the theory, principles and practices by financial institutions operating in an already viable niche banking industry growing fast in some 76 different countries. We also add at the end of the book a chapter which is an outline of possible professional accreditation and tertiary level education in Islamic banking. The contributors are eminent scholars who, having identified a need for a carefully-structured book for tertiary level training of industry professionals, then got together and produced in two years a series of studies forming the core of this book. 2.0 ETHICAL PRINCIPLES OF PROFIT-SHARING INTERMEDIATION We arrange the studies in five parts that constitute this book. Three chapters are included in Part I on the important questions of financial transaction ethics that have evolved over several millennia of mankind’s history. Financial ethics appear to have evolved over four millennia going back to the Mesopotamian laws relating to usury and interest rates and for financial contracting/transactions. In the first chapter of Part I, we trace the essential ethics on financial transactions as is evident in the historical writings on money, interest rates and usury. It appears that there...