Journal of Religious Ethics 43 (1):51-77 (2015)

Islamic banking is based on moral foundations that make it distinct from conventional banking. Some argue that because of its foundation in Islam, Islamic banking may represent a more morally appealing alternative. Yet, evidence shows that this is not the case. Indeed, the current practice of Islamic banking has not been able to achieve its goals which are based on Islam's moral values: to enhance justice, equitability, and social well-being. This essay examines the extent to which Islamic banking is ethical and concludes that the practice of the industry does not seem to be de facto ethical from the Islamic perspective of ethical values. It only consists in trading the same instruments of conventional banks without genuinely enforcing Islam's ethical vision. The practice of Islamic banking misrepresents Islam and does not contribute to solving social problems. The interaction between maqasid al-shari᾽a and qiyās provides a supplementary tool for interpreting the failure of the prior in terms of the practical misuse of the latter by Islamic banks. This essay provides an interpretive approach to the current debate about why Islamic banking has failed and suggests ways to move cautiously in the future
Keywords maqasid al‐shari᾽a  ethics  Islam  qiyās  Islamic banking
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DOI 10.1111/jore.12086
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References found in this work BETA

The Status of Business Ethics: Past and Future.Richard T. De George - 1987 - Journal of Business Ethics 6 (3):201-211.
Approaches to Organisational Culture and Ethics.Amanda Sinclair - 1993 - Journal of Business Ethics 12 (1):63 - 73.
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Islamic Business Ethics.Rafik Issa Beekun - 1997 - International Institute of Islamic Thought.

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