Islamic Banking and Finance: Traders not Mere Financial Intermediary

Mohidin Yahya Shamsudin, Hussin Salamon, Mohd Fauzi Abu-Hussin, Nasrul Hisyam Nor Muhamad

Abstract


Although Islamic Banking and Finance has been in existence since 40 years ago, the subject of Islamic banking and finance continues to be at the forefront of economic and financial discourses all over the world. The issue of Islamic banking and finance losing its credibility, its apparent inability to respond decisively to the need of its clients and accusation that Islamic banking and finance is mere replication of the conventional system are but some of the pressing issues that need to be addressed before they can ruin the legitimacy of Islamic banking as a viable alternative system. Using qualitative research method by utilising document analysis, this paper attempts to critically investigate the role and function of Islamic banking and finance as a financial intermediary and trader in the course of discharging its fiduciary function as bank and financial institution. This article also addresses the major role of Islamic bank as a financial intermediary as well as at the same time trader of goods for sale to the customers.

DOI: 10.5901/mjss.2015.v6n3p181


Full Text: PDF

Licenza Creative Commons
This work is licensed under Creative Commons Attribution 3.0 License.

Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

Copyright © MCSER-Mediterranean Center of Social and Educational Research

To make sure that you can receive messages from us, please add the 'mcser.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders..