Islamic Banking is the product created under the vision of the Islamic Economics, which put the Maqasid Shariah (the objective of Shariah) becomes the central theme of the development of the economy. The objective of Shariah includes the establishment of justice; the realization of welfare; the application of mercy, the prevalence of wisdom & knowledge; and the protection of faith, honor, intellect, posterity, and wealth. Here, Islamic banking is expected to be the instrument that will augment the realization of those objectives in the society.
Thus, the reason Islamic Banks exists should be more than just making profit. Profit is certainly important for the sustainability of the Islamic bank, but it is not the only reason for its existence. When Islamic Banks need to do business within the Shariah paradigm, the role of the Banks will be transformed into bigger objectives. Banks’ activities will then not just be confined into mere profit making entities. Banks will then carry mission to be part of the development process of a country, be the force of good for the society, and be involved in increasing the quality of financial life of the people.
By Farouk Abdullah Alwyni