The doctrinal basis upon which the Islamic banks depend

Islamic banks are distinguished from their traditional counterparts by depending on doctrinal bases where they drive their doctrinal bases from the Islamic Shari`ah according to the following:

First, Islamic banks depend on the Shari`ah through its fundamental components which are represented in `Aqidah (creed), Fiqh (Islamic jurisprudence), and morals. As for the `Aqidah, it is the belief in Allah, the One who manages the universe, and the Creator of mankind. Based on this `Aqidah, there are important economic theories result from that and they are as follows:

1- The theory of succession on earth: because Allah (may He be Exalted) is the Owner of everything and to Him everything returns, therefore, those who work in the field of Islamic banks have to realize the reality of succession through financing and investment operations that they are executing. They have to direct the beneficiary of these operations toward satisfying the divine obligations that were ordained through the established projects and eagerness to preserve the assets of projects because they are successors and entrusted with these projects and shall be asked about them on a day where no money nor children shall avail.

2- The theory of constructing and development of the earth: the developing the earth by all permissible means that cope with the divine ordinances and avoidance of violations which may lead to deniable acts or sins. Therefore, Islamic banks have to direct their investments to the construction of the earth in a way that serves the developmental plans laid for the country in which they exist, which in turn achieves a great human development as Ibn Khaldun pointed out when he concentrated on constructing the earth and said that it is a mean for every development.

We find that jurisprudence came to distinct the lawful from the unlawful in Islamic transactions through the financing operations, and the Islamic contracts that are circulated, and how to execute these projects and their products. We can notice the application of Islamic banks to this pillar through Islamic bodies that are known for their piety on the Islamic level who examine all workers and projects before involving in any work and making sure of its validity from the Shari`ah point of view. We shall write an article about the Shari`ah bodies from the point of their tasks, obligations, and the conditions of choosing their members.

We find that morals consist of values, principles and proprieties derived from the Islamic Shari`ah and Islamic banks are working to achieve a set of these values such as equity, responsibility, placing money in a good hand, and piety.

Zakah is one of the most important Islamic values that work to achieve equality in distributing income and spreading the spirit of cooperation and brotherhood among people.

Second, avoiding forbidden acts in financial transactions: Usury is one of the gravest financial prohibitions in jurisprudence, therefore the Islamic banks are distinct from the traditional banks by achieving justice in their transactions. Usury is defined as conditional increase in the capital of a loan whether that increase is instant or deferred.

Usury is one of the prohibited major sins. From the proofs of prohibiting usury are the following:

Allah's Saying: "O you who believe! Be afraid of Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers. * And if you do not do it, then take a notice of war from Allâh and His Messenger (peace be upon him) but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)." [Surat Al Baqarah: 278- 279]. Allah (Exalted be He) says: "Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: “Trading is only like Ribâ (usury),” whereas Allâh has permitted trading and forbidden Ribâ (usury)." [Surat Al Baqarah: 275]. Therefore, the philosophy of Islamic banking works to avoid dealings in interests unlike the case in traditional banks.

In addition to usury, we find the prohibition of Gharar (deception) and usurping people's money without right. The wisdom behind the prohibition of deception in Islamic banking transactions is deception and greediness. Allah (Exalted be He) says: "O you who believe! Eat not up your property among yourselves unjustly except it be a trade amongst you, by mutual consent." [Surat An-Nisa': 29].

Therefore, we find that the doctrinal basis of Islamic banks is derived from the Islamic Shari`ah through the clear Qur'anic texts which paved the way for a sound banking work that opens the way for integrated Islamic economy in the Muslim world.