Islamic Banking: Form and Content

Islamic Banking: Form and Content

Today's economy is at the Centre of life in the world and is at the top of priorities and the attention of states, intellectuals and specialists.

Banks are the backbone of the economy and its main driver because they save, move, develop, facilitate trading and plan to invest.

Islamic banking is a key pillar of the Islamic economic system, especially the contemporary one, and the truth is that Islamic banking is not a change in form or name, or simply adding the word "Islamic" to the name of the bank or changing some names according to the content of the lord, as he thought.

Islamic Banking is not only banks that deal not only with interest and giving, but also as contract institutions, established to embody and strengthen the Islamic economy in practice and have the right to invest and profit while at the same time having a developmental responsibility for societies.

Islamic banking in Muslim and Arab countries has therefore sought to address the economic and social problems of contemporary societies as well as to alleviate the material suffering of individuals.

Islamic banking has even become comparable to commercial banks in their economic, banking and commercial activities as they have spread in most of the Muslim world, so it is no wonder that commercial banks are taking positive steps towards establishing sections or branches of Islamic financial transactions.

Islamic banking is also characterized by its concern for the principle of participation and work report as a source of gain, rather than considering money as the sole source of earnings, freeing the individual from the negative tendency of the applicant who deposits his money pending interest, while correcting the function of capital in society as a servant of his interests rather than an independent entity.

"The Islamic banking system is more effective and balanced than that of Western countries, particularly in dealing with financial shocks," the IMF document said.

Despite the global trend of Islamic banking, it still faces much criticism, specifically in Muslim countries, which many of its communities expect to be an alternative to traditional inters rate (Riba) based banks and take high benefits from customers.

Among the criticisms faced by Islamic banking is the high profits of financing, which is higher than that of traditional banks, and Islamic banking faces other criticisms such as the sham dealing in existing products, and it is currently focused on seeking profit only, in any way, and striving to adapt the products that traditional banks used to deal with to Islamism.

In conclusion, it can be said:

Islamic banks are one of the few authentic banks that have emerged, and I believe that the system of these banks may play an active role in the development and recovery of the economy, especially during the current crises because their great goal is towards productive investments.