Some observations on contemporary financial proposals
International Journal of Ethics and Systems
ISSN: 2514-9369
Article publication date: 3 August 2022
Issue publication date: 18 April 2023
Abstract
Purpose
This paper aims to discuss the views of scholarship in South Asia regarding Riba and Riba-free finance, including the conservative and realist schools in mainstream thought and the assimilative and interpretive schools in liberal thought.
Design/methodology/approach
The paper uses textual analysis to critically review the writings of scholars in South Asia on contemporary issues regarding Riba and Riba-free finance. It provides a critical review in the light of Islamic jurisprudence and extant Islamic economics literature.
Findings
There are several characteristics in conventional banking and finance products that do not comply with Islamic teachings. In this scenario, Islamic banking is comparatively a better alternative to conventional banking and finance products to achieve Shari’ah compliance and avoid indulging in Riba.
Practical implications
Voluntary financial exclusion to avoid Riba is significant in Muslim-majority countries. Increased penetration of Islamic finance requires clarity on what is Riba and confidence in Riba-free alternatives. Outreach efforts of Islamic financial institutions use conventional banking as a frame of reference to provide a critique of interest-based banking. However, the apprehensions within the Islamic finance literature also need to be answered to change perception and enhance people’s willingness to use Islamic banking. Doing this can expedite the process of financial inclusion as well as help in the transformation of the economy on Riba-free foundations in a reasonably quick timeframe.
Originality/value
This is the first study to critically evaluate the financial proposals presented and propagated by the contemporary interpretive school in South Asia.
Keywords
Citation
Shaikh, S.A. (2023), "Some observations on contemporary financial proposals", International Journal of Ethics and Systems, Vol. 39 No. 2, pp. 464-480. https://doi.org/10.1108/IJOES-03-2021-0067
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited