An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam

Mohammad Tanvir Islam; Muhammad Shafiuddin

doi:doi:10.11648/j.ijfbr.20200604.14

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An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam

Mohammad Tanvir Islam, Muhammad Shafiuddin

Published in International Journal of Finance and Banking Research (Volume 6, Issue 4)

Received: 22 June 2020 Accepted: 20 July 2020 Published: 10 September 2020

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Abstract

This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.

Published in	International Journal of Finance and Banking Research (Volume 6, Issue 4)
DOI	10.11648/j.ijfbr.20200604.14
Page(s)	83-89
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Halal & Non-Halal Product, Service and Faction, Qualitative Techniques

References

[1]	Durrani, D. M. (Feb 16, 2014). IS CONVENTIONAL BANKING ALL BAD? islamiceconomist.com.
[2]	Ahmad, F. (2020). Islamic Banks vs. Conventional Banks in Bangladesh: A Comparative Study Based on its Efficiency in Operation. International Journal of Islamic Banking and Finance Research, 29-37.
[3]	BanksBD.org. (2020). Retrieved July 17, 2020, from www.banksbd.org: www.banksbd.org.
[4]	Saleh, M. A., Quazi, A., Keating, B. W., & Gaur, S. S. (2017). Quality and image of banking services: a comparative study of conventional and Islamic banks. International Journal of Bank Marketing, 35 (6), 878-902.
[5]	Ari Subagio, D. W. (2015). Consumer Decision Making in Conventional Banks and Islamic Bank based on Quality of Service Perception. Procedia - Social and Behavioral Sciences 211, 471-475.
[6]	Hanif, M. (2011). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Science, 166-175.
[7]	Md. Abdul Awwal Sarker. (n.d.). International Journal of Islamic Financial Services Vol. 1 No. 3.
[8]	Shafiq, A. (2019). A Review of Journals & Publishing Houses in the Field of Islamic Economics and Finance (Report No. 8). Istanbul: Research Center for Islamic Economics (IKAM).
[9]	ALI, L. (September 2013). Comparison of Islamic and Conventional Banking. International Review of Management and Business Research, 837-846.
[10]	page, I. B. (1983). Islami Bank Bangladesh Limitted. Retrieved July friday, 2020, from www.islamibankbd.com/prodServices/prodServices.php:www.islamibankbd.com.
[11]	Alshubaily, N. (2018). Understanding What is Forbidden (Haram) in Financial Structures. Dubai, UAE: islamicmarkets.
[12]	Wikipedia, the free encyclopedia. (n.d.). Retrieved July friday, 2020, from en.wikipedia.org/wiki/Islamic_finance_products,_services_and_contracts#Principles: en.wikipedia.org.
[13]	Islam Question & Answer. (1997), from islamqa.info:www.islamqa.info.
[14]	Personal decisions of some Islamic Scholars Namely Mufti Mohammad Ullah.
[15]	Personal decisions of Some Supreme Court Advocate, who work as Legal Advisor of Islamic Bank Bangladesh.
[16]	Ministry of Finance (20092012) Activities of Banks and financial Institution. Government of People republic of Bangladesh, Retrieved.

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APA Style

Mohammad Tanvir Islam, Muhammad Shafiuddin. (2020). An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. International Journal of Finance and Banking Research, 6(4), 83-89. https://doi.org/10.11648/j.ijfbr.20200604.14

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ACS Style

Mohammad Tanvir Islam; Muhammad Shafiuddin. An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. Int. J. Finance Bank. Res. 2020, 6(4), 83-89. doi: 10.11648/j.ijfbr.20200604.14

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AMA Style

Mohammad Tanvir Islam, Muhammad Shafiuddin. An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. Int J Finance Bank Res. 2020;6(4):83-89. doi: 10.11648/j.ijfbr.20200604.14

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@article{10.11648/j.ijfbr.20200604.14,
  author = {Mohammad Tanvir Islam and Muhammad Shafiuddin},
  title = {An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {4},
  pages = {83-89},
  doi = {10.11648/j.ijfbr.20200604.14},
  url = {https://doi.org/10.11648/j.ijfbr.20200604.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200604.14},
  abstract = {This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.},
 year = {2020}
}

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TY  - JOUR
T1  - An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam
AU  - Mohammad Tanvir Islam
AU  - Muhammad Shafiuddin
Y1  - 2020/09/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijfbr.20200604.14
DO  - 10.11648/j.ijfbr.20200604.14
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 83
EP  - 89
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20200604.14
AB  - This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.
VL  - 6
IS  - 4
ER  -

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Author Information

Mohammad Tanvir Islam

Capital Law Chamber, Dhaka, Bangladesh
Muhammad Shafiuddin

Centre for Higher Studies and Research, Bangladesh University of Professionals, Dhaka, Bangladesh

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APA Style

Mohammad Tanvir Islam, Muhammad Shafiuddin. (2020). An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. International Journal of Finance and Banking Research, 6(4), 83-89. https://doi.org/10.11648/j.ijfbr.20200604.14

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ACS Style

Mohammad Tanvir Islam; Muhammad Shafiuddin. An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. Int. J. Finance Bank. Res. 2020, 6(4), 83-89. doi: 10.11648/j.ijfbr.20200604.14

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AMA Style

Mohammad Tanvir Islam, Muhammad Shafiuddin. An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam. Int J Finance Bank Res. 2020;6(4):83-89. doi: 10.11648/j.ijfbr.20200604.14

Copy | Download

@article{10.11648/j.ijfbr.20200604.14,
  author = {Mohammad Tanvir Islam and Muhammad Shafiuddin},
  title = {An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {4},
  pages = {83-89},
  doi = {10.11648/j.ijfbr.20200604.14},
  url = {https://doi.org/10.11648/j.ijfbr.20200604.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200604.14},
  abstract = {This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam
AU  - Mohammad Tanvir Islam
AU  - Muhammad Shafiuddin
Y1  - 2020/09/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijfbr.20200604.14
DO  - 10.11648/j.ijfbr.20200604.14
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 83
EP  - 89
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20200604.14
AB  - This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.
VL  - 6
IS  - 4
ER  -

Copy | Download