The impact of theory of permissibility on contemporary Islamic banking:Analytical study

Abstract

Shari'ah did not leave humanity free in any case, but it provides the
basic and necessary instructions, for each and every aspect of life. Devine
injunctions are not limited to Ibadaat( worship) but there are some other
injunctions such as Muamilaat(contracts).The injunctions regarding Ibadath
are limited and are restricted in nature ,on the contrary the contract rules are
more flexible and extendable. The logic behind this is that the rules of ibadah
could be proved only by Quran and Sunnah whereas all contracts are legal in
nature as long the reason and evidence of its prohibition comes out.
There is a rule among the jurist that, Contracts are recommended nor
not recommended,, they are neutral in nature .in the light of this rule all the
kinds of contract could be analyzed. Ignorance from these rules it lead to
many misunderstanding regarding the contemporary Islamic banking. The
purpose of this paper is to analyze these misconceptions regarding this rule.