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Created page with "== Definition == ''A financial service principally implemented to comply with the main tenets of Sharia or Islamic law'' In turn, the main sources of Sharia are..."

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== Definition ==

''A financial service principally implemented to comply with the main tenets of [[Sharia]] or [[Islamic law]]''

In turn, the main sources of [[Sharia]] are the [[Holy Quran]], [[Hadith]], [[Sunna]], [[Ijma]], [[Qiyas]] and [[Ijtihad]]. The [[Holy Quran]] is the book of revelation given to the [[Prophet Muhammad]]; [[Hadith]] is the narrative relating the deeds and utterances of [[Prophet Muhammad]] (S.A.W); Sunna refers to the habitual practice and behavior of [[Prophet Muhammad]] during his lifetime; [[Ijma]] is the consensus among religion scholars about specific issues not envisaged in either the [[Holy Quran]] or the [[Sunna]]; [[Qiyas]] is the use of deduction by analogy to provide an opinion on a case not referred to in the [[Quran]] or the [[Sunna]] in comparison with another case referred to in the [[Quran]] and the [[Sunna]]; and [[Ijtihad]] represents a jurists independent reasoning relating to the applicability of certain [[Sharia]] rules on cases not mentioned in ether the [[Quran]] or the [[Sunna]].

A large number of [[Islamic finance]] definitions are found in the literature, ranging from the relatively simple definitions for specific aspects (say, [[Islamic banking]]) to more complex definitions covering all financial operations. Warde (2000, p. 5), for example, defines [[Islamic finance]] as follows: “Islamic financial institutions are those that are based, in their objectives and operations, on [[Quran]]’s principles (principles of the Muslims’ holy book)”. This particular definition suggests that Islamic financial firms are not just banks, but also other types of financial intermediaries that employ [[Sharia]] principles. The other point of departure is that the [[Sharia]] ostensibly requires the adjustment of all aspects of Muslims’ lives and the formation of a complete moral system. According to Iqbal (1997), while the prevailing Western financial system focuses on the capitalistic features of economic and financial processes, [[Islamic finance]] aims to make an actual moral and equitable distribution in resources and social fairness in all (Muslim) societies.

[[category:Islamic Finance]]
[[category:Islamic Finance Definitions]]

Islamic Finance Definition - Revision history

Admin: Created page with "== Definition == ''A financial service principally implemented to comply with the main tenets of Sharia or Islamic law'' In turn, the main sources of Sharia are..."