Munich Personal RePEc Archive

الحكم الشرعي للاتجار بالديون الناشئة عن الوساطة المالية

Abozaid, Abdulazeem (2019): الحكم الشرعي للاتجار بالديون الناشئة عن الوساطة المالية. Forthcoming in: Journal of Bait al-Mashura (2019)

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Abstract

Debt creation is one of the most serious problems faced by modern economies. It occurs through financial institutions using the huge funds they have mostly from depositors to create debt through providing financing to clients. Then comes the issue of selling the debt resulting from the financial intermediation to exacerbate the risk further. The totality of these two things, excessive creation of debt and then selling it, is one of the most important causes of financial crises, and the recent global financial crisis in 2008, is the best witness to this fact. Huge amount of real estate debt was created by means of home financing in the United States, securitized and then sold locally and abroad. Debtors defaulted and consequently collateral damage occurred affecting debts owners, debt insurance companies and banks all over the world. Although Islam in principle does not oppose to the issue of financial intermediation, since selling at a deferred price may involve financial intermediation, like in the banking Murabaha, Islam however prohibits the trade of debt arising from this mediation for its risk being a major reason for economic crises, and this reflects the invulnerability of the Islamic economics to crises. The research comes to investigate this issue and criticize the contemporary interpretations that justify the sale of debt by various means, since such interpretations deprive Islamic finance of its major element of immunity against financial crises.

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