Form v. substance in Islamic banking and financial transactions

Saleem, Muhammad Yusuf (2008) Form v. substance in Islamic banking and financial transactions. In: Proceedings of the International Conference on Business Globalisation in the 21st Century, 21-22 April 2008, Bahrain.

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Abstract

This paper focuses on issues of form and substance in Islamic banking and financial transactions. The paper critically examines the argument that compares Islamic banking products with permissible (halal) foods, islamically slaughtered chickens, and properly concluded marriages. The paper argues that these comparisons are misleading and cannot be maintained. It argues that a transaction establishes a certain contractual relationship between the parties and entitles them to certain rights and obligations. This paper concludes that issues related to substance in transactions are directly concerned with the rights and obligations of the contracting parties. A transaction that in form complies with the Shari’ah but not in substance has consequences for the contracting parties. It may entitle the contracting parties to a set of rights and obligations different from the ones that are intended by the Shari’ah. It concludes that a transaction that complies in words and forms with the Shari’ah but deprives the parties of their rights and obligations cannot be defended on procedural grounds.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	2867/23485
Uncontrolled Keywords:	Islamic banking, financial transaction
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr. Muhammad Yusuf Saleem
Date Deposited:	27 Jun 2012 11:16
Last Modified:	27 Jun 2012 11:17
URI:	http://irep.iium.edu.my/id/eprint/23485

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