'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

  • Sharifah Faigah Syed Alwi Arshad Ayub Graduate Business School, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia
  • Fateha Abd Halim
  • Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin Ableace Raakin, 50400 Kuala Lumpur, Malaysia
  • Aizurra Haidah Abdul Kadir Bank Islam Malaysia Berhad, 50450 Kuala Lumpur, Malaysia
  • Aula Ahmad Hafidh Saiful Fikri Faculty of Economics, Universitas Negeri Yogyakarta, Indonesia

Abstract

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.


Keywords:  maqasid al-shariah, Islamic banks, operation  

Published
2021-08-20
How to Cite
SYED ALWI, Sharifah Faigah et al. 'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION. Social and Management Research Journal, [S.l.], v. 18, n. 2, p. 173-189, aug. 2021. ISSN 0128-1089. Available at: <https://myjms.mohe.gov.my/index.php/SMRJ/article/view/14907>. Date accessed: 21 may 2022. doi: https://doi.org/10.24191/smrj.v18i2.14907.

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