The ideological aspects of Islamic banking

Abstract

Islam is a complete and comprehensive religion. It is a living form and expression and a manner of existence. It is not ideological vision but it is a practical system of life and balances human bodily requirements, reason and spirit. The Divine Synthesis between man's desire to cling to material possessions and his equally strong longing for spiritual ascension guarantees the "completeness" of the Islamic system, in forming mundane pursuits with a sense of the sacred. However, it is important to bear in mind that, while it is true, that the Islamic way of life forms a self-sufficient or bit of social, economic and moral values, it is by no means insular. It is not a limiting concept which pre-empts innovative ideas but a starting point opening up new horizons for breath-taking initiatives. It is this fact which ensures the dynamism of the Islamic economic system. The downfall of Muslims as a political power and the destruction of their economic system, followed by the rise of the West and its banking system all over the world, gave rise to the general belief that a modern developing economy cannot work except through interest, for it encourages and mobilises saving into banks and investments. The world has become much more complicated than ever and easy solutions have become totally inadequate in the modern world of sensuous affluence.