Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail

The essence of the monetary system today is in using the fractional reserve banking system. Nonetheless, this system is not free of critics such as the fraud of making loans and creating deposits out of nothing which are argued to create distortion to the economy. Since 1930s, many economic schola...

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Main Author:	Ismail, Abdul Ghafar
Format:	Article
Language:	English
Published:	Faculty of Business and Management, Universiti Teknologi MARA Selangor 2017
Subjects:	Bank reserves. Bank liquidity. Loan loss reserves Finance, Islamic
Online Access:	http://ir.uitm.edu.my/id/eprint/19373/ http://ir.uitm.edu.my/id/eprint/19373/ http://ir.uitm.edu.my/id/eprint/19373/2/AJ_ZURIYATI%20AHMAD%20JEEIR%2017.pdf

id	uitm-19373
recordtype	eprints
spelling	uitm-193732019-03-11T04:00:00Z http://ir.uitm.edu.my/id/eprint/19373/ Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail Ismail, Abdul Ghafar Bank reserves. Bank liquidity. Loan loss reserves Finance, Islamic The essence of the monetary system today is in using the fractional reserve banking system. Nonetheless, this system is not free of critics such as the fraud of making loans and creating deposits out of nothing which are argued to create distortion to the economy. Since 1930s, many economic scholars have debated the use of full reserve system as an alternative tool of monetary system.Islamic scholars also argue and reject the working of fractional reserve banking system and propose the idea of full reserve system. From the view of Islamic scholars, the full reserve system should be applied to avoid the riba’ in the monetary system. Hence, this study tries to assess whether the use of full reserve system can attain the Maqasid Shariah to support the alternative banking system. Using the argument on fractional reserve system, discussion on the concept of full reserve system, analysis of the impacts of full reserve system and the support from Quran and Hadith, this study concludes that the injustice and riba’ can be avoided under thefull reserve system, hence,attaining the Maqasid Shariah. Faculty of Business and Management, Universiti Teknologi MARA Selangor 2017 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/19373/2/AJ_ZURIYATI%20AHMAD%20JEEIR%2017.pdf Ismail, Abdul Ghafar (2017) Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail. Journal of Emerging Economies and Islamic Research (JEEIR), 5 (2). pp. 1-9. ISSN 2289 - 2559 http://www.jeeir.com
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Bank reserves. Bank liquidity. Loan loss reserves Finance, Islamic
spellingShingle	Bank reserves. Bank liquidity. Loan loss reserves Finance, Islamic Ismail, Abdul Ghafar Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
description	The essence of the monetary system today is in using the fractional reserve banking system. Nonetheless, this system is not free of critics such as the fraud of making loans and creating deposits out of nothing which are argued to create distortion to the economy. Since 1930s, many economic scholars have debated the use of full reserve system as an alternative tool of monetary system.Islamic scholars also argue and reject the working of fractional reserve banking system and propose the idea of full reserve system. From the view of Islamic scholars, the full reserve system should be applied to avoid the riba’ in the monetary system. Hence, this study tries to assess whether the use of full reserve system can attain the Maqasid Shariah to support the alternative banking system. Using the argument on fractional reserve system, discussion on the concept of full reserve system, analysis of the impacts of full reserve system and the support from Quran and Hadith, this study concludes that the injustice and riba’ can be avoided under thefull reserve system, hence,attaining the Maqasid Shariah.
format	Article
author	Ismail, Abdul Ghafar
author_facet	Ismail, Abdul Ghafar
author_sort	Ismail, Abdul Ghafar
title	Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
title_short	Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
title_full	Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
title_fullStr	Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
title_full_unstemmed	Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail
title_sort	full reserve system and the maqasid shariah / zuriyati ahmad, abdul ghafar ismail
publisher	Faculty of Business and Management, Universiti Teknologi MARA Selangor
publishDate	2017
url	http://ir.uitm.edu.my/id/eprint/19373/ http://ir.uitm.edu.my/id/eprint/19373/ http://ir.uitm.edu.my/id/eprint/19373/2/AJ_ZURIYATI%20AHMAD%20JEEIR%2017.pdf
first_indexed	2023-09-18T23:02:26Z
last_indexed	2023-09-18T23:02:26Z
_version_	1777418262112370688

Full reserve system and the Maqasid Shariah / Zuriyati Ahmad, Abdul Ghafar Ismail

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