Money Creation by Banking Industry, Maqasid Al-Shariah and Ar Rawaj
Keywords:
Money Creation, Maqasid al Shariah, Ar Rawaj, Islamic Banking and FinanceAbstract
The paper aims to investigate money creation by banks with respect to the dimensions of Maqasid al Shariah in particular the concept of Ar Rawaj as one important element of hifz al mal. Numerous studies conducted analysing Islamic Banking and Finance (IBF) in relation to the Maqasid al Shariah except the issue of money creation vis-a-vis Ar Rawaj concept. This is vital as IBF is about the religion of Islam and the industry is growing fast. The investigation would have implication to the nature and goals of IBF as well as its directional development. The author employs library research method examining published works including journal articles, quotes from global prominent practitioners, established textbooks and primary translated books from original authors on the subject matter and looks for the gap. Using literatures in the area of money creation, Maqasid al Shariah as well as from the reading from IBF, the paper attempts to deductively analyse the threat of money creation to the fulfilment of the Maqasid al Shariah with respect to the concept of Ar Rawaj. Using the compass of religion, the author concludes that the industry stakeholders needs to seriously examine the money creation issues and explored the alternative models.
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