islamicbanker.com

Just as we can read the work of a human author, from Marx to Keynes, in a closed minded and rigid fashion, we can approach divine revelation in a similar manner. Instead, we should be at once critical, open-minded and incisive. The history of Islamic civilization offers us ample proof of this. Tariq Ramadan,  Reading the Qur'an

Sources of Islamic Finance

In their epic book The Vision of Islam, William Chittick and Sachiko Murata claim "the role of the prophet in codifying Muslim learning should not be underestimated." For example, it is commanded in the Qur'an for every Muslim to perform the salat (Islamic prayer). However, the precise instructions on how to perform the salat can only be found in the teachings of Prophet Muhammed , also known as hadith (pl. ahadith) .

Similarly, understanding of ahadith is crucially important in relation to Islamic finance. The Prophet  once said "I was only sent to perfect noble character," and it is this statement that in principle goes to the very core of Islamic banking. It is argued that the conventional financial model is ethically flawed and as a result inconsistent with Islamic beliefs. This is one of the main reasons for the massive uptake of Islamic banking products. However, the surge in product uptake has been followed by a surge in criticisms. The key question for consumers here is: if we adopt Islamic finance, are we closer to the teachings of Prophet Muhammed ? Read More...