Institutionalising Justice in Islamic Finance

Abstract

This research paper provides in-depth discourse on how justice can be operationalised in different Islamic financial institutions to achieve the objectives of the Islamic moral economy. The current financial institutions claiming to be Shari’ah compliant are more and more reflecting the behaviour of conventional financial institutions in terms of their impact on society. The paper proposes development of new Islamic financial institutions to endogenise the concept of justice based on the teaching of Qur’an and Sunnah. This will allow actualizing an ideal Islamic society based on equality, co-operation, and welfare with overall objective of the welfare of human beings through development of non-banking-financial institutions such as Islamic social banking, and zakah and awaqf based institutions and eventually promoting economic development. Furthermore, development of such institutions will also contribute to the financial inclusion of society.