Islamic Finance Case Study Example | Topics and Well Written Essays - 500 words

Islamic Finance - Case Study object lessonHence, the present state of this Islamic finance is trying to upgrade and cope up with the economic, banking and finance crisis with purport and advance in technology and it seems it will still be involving from generations to generations.The view of charging interest on Islamic finance regarding riba is that their basic idea is they like money contribute to this Islamic finance used to extend mosques rather than other projects (Swartz, 2011). In accordance to Sharia Islamic religious law riba is considered manipulative and vile (Swartz, 2011). In addition, interest from the contributed money is often criticized because perspective view of these whole issues states that it is an effortless profit where the borrower is pass judgment to pay as a form of compensation to the lender. Even in cases like where creditor has right of self-discipline of debtors property if he or she is unable to settle the debt. Therefore, riba is an economic is sue concerning the Muslims. In the fact, it is unlawful and discouraged in one way or another since the inception of this Islamic finance and still Islam is still withstanding this beliefs. Hence, the major concern in analysis to this monetary transaction is to evade riba scorn the reality that it is the foundation to growth in economics, banking and finance (Hart, Childs & Boyle, 2013).For Islamic finance to grow and develop a strong basis, banks have introduced use of tawarruq and inah to aid in improving Islamic economic, banking and finance with the intention of renewal the old concepts, which are prohibited in Islam. However, this has ignited controversy and criticism for many believe that the dealing are not Sharia compliant citing their argument that there is no main economic activeness involved about Sharia law. Therefore, application of tawarruq and Inah banking system in Islamic finance is invalid and in effective. This is because this monetary institution will face an extensive