Islamic Finance: A Study on the Theory and Practice in context of Modern Investigations

Abstract

Islam being a complete code of life (Al Quran, 5:3), has given birth to a new kind of financial system and process of interpreting this system. Islamic finance is a creation of this kind of philosophy of making a balance between this world and the hereafter (Al Quran, 16:89). As it can be seen, Islam gives emphasis in the just and ethical representation of economic events (Al Quran, 2:199). So, a broad literature has already developed in the Islamic economic areas about the pros and cons of this kind of Finance: the standards, the policies, the methods, the practices and interpretation mechanism. This report was aimed to give an overall picture of the Islamic Finance framework, seen from the lens of past investigations, research and journals. And, at the end, a summary of the present state of Islamic Finance in the context of Bangladesh is given and recommendations made for further research.