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A Study of Islamic Banking with a Look at the Contract of Reward in Banking System

Journal: International Journal of Nations Research (Vol.5, No. 55)

Publication Date:

Authors : ;

Page : 55-74

Keywords : Contract of Reward; Liabilities; Interest-Free Banking; Reward; Islamic Banking;

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Contracts of reward are used in all economic sectors and therefore can be used as a supplement to the Mudaraba contract (which is only related to the commercial sector). The use of the contract of reward in Islamic banking is so much that it is called “Umm Al-Oqood”, meaning the mother of all contracts. The reason for this wide range of applications is due to the ease of conditions of this contract compared to other contracts and also the range of affairs that can be done by it. In Islamic banking, people's economic relations are based on Islamic contracts. One of the bilateral economic relations is the contract of reward. Granting bank facilities in accordance with Islamic limits and regulations is mandatory and noteworthy. Therefore, the bank can enter into a contract of reward as either party to the contract (the principal or the agent). The rulings on the issues discussed in the contract of reward in banking system, despite minor differences, are almost in line with the rules and mandates of the contract of reward in civil law. In this research article, an attempt has been made to investigate the contract of reward in the banking system.

Last modified: 2020-11-27 03:40:53