The Role of Financial Inclusion in the Stability of Islamic Banks

Abstract

Purpose: The purpose of this research is studying the role of financial inclusion on financial stability in the Islamic banks, Highlighting the role of Islamic law in promoting financial and banking inclusion. Theoretical framework: Introduce financial inclusion and definition of financial inclusion, statement of financial stability, and the role of financial inclusion in the stability of Islamic banks, in which the concept of financial inclusion and its dimensions was reviewed. Methodology: The study was based on a qualitative research method, as it collected information from books, reports, journals, newspapers, and websites. The study adopted the descriptive analytical approach to study and analyze the various aspects of financial inclusion, its dimensions in Islamic banks, and its relationship in financial stability. Findings: The relationship between financial stability and financial inclusion in Islamic banks is a direct relationship and financial stability cannot be reached without achieving financial inclusion and vice versa. The financial sectors must develop two sectors in parallel to achieve the desired economic development. Research, Practical & Social implications: Central banks, Islamic banks (clients /staff), financial institutions, and small clients are the main beneficiaries of these ideas. Originality/value: This study contributes to determining the role of financial inclusion in financial stability, using Islamic banks, which is to determine the effect of applying financial inclusion on the financial investment of Islamic banks. The research is based on a lack of studies on research variables.