FİNANSAL ARACILIĞIN ASLÎ İŞLEV VE FAALİYETLERİNE GERİ DÖNDÜRÜLMESİ

Abstract

Financial intermediation is a vital function that permits money circulation by getting it from surplus units in the economy and giving it to deficit units. Unfortunately, intermediary institutions deviated from this essential function and indulged in speculative trading activities using, in the process, a complex of debt instruments which are mute (unable to create added value) by nature. In contrast, Islamic finance ideas offer ways to bring financial intermediation back to focus on its original function of channeling resources from the liquidity fluent economic units to the liquidity hungry units. This paper aims to explore the economic advantages of applying principles such as using financial instruments of sale, lease, and sharing instead of the debt-based instrument of interest lending, especially in confining financial institutions to supporting the real economy through activities of financial intermediation and preventing them from going away from this fundamental function. This is in addition to the economic advantages of incorporating ethical values in the activities of financial institutions, which make financial transactions strictly associated with what is beneficial to human welfare. This paper takes a theoretical analysis approach and is based on secondary information through financial literature, papers, and articles.