Financial sector components in a religious context: Judaism, Christianity, and Islam

Abstract

The purpose of this paper is to examine financial sector components in a religious context, using the example of states representing the three major monistic religions: Judaism, Christianity, and Islam. For this purpose, the role of each religion in the economic life of society was analyzed using the method of qualitative approach, the main banking practices of each religious tradition were identified, and the banking sector in the religious context was assessed. The study results demonstrate that the religious worldview is a determining factor in the social and economic activities of society. Christian societies are not subject to religious norms in their banking practices; the state and the church are separate. Islamic financial institutions, by contrast, are based on Sharia law and are most subordinate to religion. This information is of interest to financiers as well as to policymakers involved in regulating the banking system.