Classical Islamic Fatwa Framework in Mu^amalat for Islamic Banking Institutions
Auwal Salisu, Shereeza Mohamed Saniff and Shahir Akram Hassan

Federal University Gashua, Nigeria, Centre for Islamic Development Management Studies

Abstract

Abstract
Among the objectives of Mu^amalat in Islamic law is for man to achieve human wellbeing (Al-Falah Wa Al-Salah) and to eliminate economic injustice and unfairness. One of the ways to achieve this aim is through an effective operation of Islamic banking institutions according to Islamic Jurisprudence. Thus, existing literatures on Islamic banking institutions seems to suggest inadequacy and failure to comprehensively settle many aspects of economics and financial problems of the world especially the Muslims. In Mu^amalat, a Muslim must ensure that the buying and selling transaction are set according to religious guidelines, so that one can avoid falling into forbidden transactions and unlawful forms of earning. This paper has two objectives. First to identify classical Islamic Fatwa framework (IFF) focusing on the Mu^amalat aspects. Secondly to show how an effective operation of Islamic banking can be established under IFF. In order to achieve the objectives, through documentary review of existing literatures, narrative analysis as well as conceptual approach of analysis are used to present a sound legal theory of Fatwa under Islamic Jurisprudence. At the end, this paper proves that the use of classical Islamic Fatwa indicates that it provides one of the best forms of eliminating economic injustice and unfairness that sufficiently provides for the endeavours towards sustainable human wellbeing.

Keywords: Keywords: Classical Islamic Fatwa, Banking Institutions, Mu^amalat, sustainable, human well-bein

Topic: Business, Corporate Governance, and Accounting