The Impact of Islamic Banking on Redistribution of Sustainable Income
Islamic banking operates within a framework guided by Shariah principles, emphasizing fairness, equity, and social justice. Unlike conventional banking systems that rely on interest-based transactions, Islamic banking prohibits riba (interest) and promotes profit-and-loss sharing. However, income in...
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta
2025-01-01
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| Series: | Journal of Islamic Economics and Finance Studies |
| Subjects: | |
| Online Access: | https://ejournal.upnvj.ac.id/JIEFeS/article/view/9194 |
| _version_ | 1826901382580404224 |
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| author | Jamiu Adeniyi Yusuf Rauf Mumini Oladapo Ayuba Aderole Ismail Muhammed Azeem Tunde |
| author_facet | Jamiu Adeniyi Yusuf Rauf Mumini Oladapo Ayuba Aderole Ismail Muhammed Azeem Tunde |
| author_sort | Jamiu Adeniyi Yusuf |
| collection | DOAJ |
| description | Islamic banking operates within a framework guided by Shariah principles, emphasizing fairness, equity, and social justice. Unlike conventional banking systems that rely on interest-based transactions, Islamic banking prohibits riba (interest) and promotes profit-and-loss sharing. However, income inequality remains a persistent challenge in many Muslim-majority countries, raising questions about how Islamic banking can contribute to sustainable income redistribution. This study employs primary data collected from 400 respondents across four countries where Islamic banking operates: Saudi Arabia, Malaysia, Indonesia, and Nigeria, with 100 participants sampled per country. Data were gathered using structured interviews and analyzed using qualitative and quantitative approaches, supported by a review of literature and case studies. The findings reveal that Islamic banking significantly contributes to wealth redistribution and economic justice through instruments such as zakat, waqf (endowments), and profit-sharing models. The research concludes that Islamic banking is not only a viable alternative to conventional systems but also an essential mechanism for achieving sustainable income redistribution. These findings have significant implications for policymakers, financial institutions, and communities seeking to address income inequality and foster a more equitable economic system. |
| first_indexed | 2025-02-17T07:22:46Z |
| format | Article |
| id | doaj.art-694d8aa7c3e54e4493574e8fb04dc235 |
| institution | Directory Open Access Journal |
| issn | 2723-6730 2723-6749 |
| language | English |
| last_indexed | 2025-02-17T07:22:46Z |
| publishDate | 2025-01-01 |
| publisher | Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta |
| record_format | Article |
| series | Journal of Islamic Economics and Finance Studies |
| spelling | doaj.art-694d8aa7c3e54e4493574e8fb04dc2352025-01-05T06:32:38ZengFaculty of Economics and Business, Universitas Pembangunan Nasional Veteran JakartaJournal of Islamic Economics and Finance Studies2723-67302723-67492025-01-015235236710.47700/jiefes.v5i2.91948118The Impact of Islamic Banking on Redistribution of Sustainable IncomeJamiu Adeniyi Yusuf0Rauf Mumini Oladapo1Ayuba Aderole Ismail2Muhammed Azeem Tunde3Fountain University, OsogboFountain University, Osogbo, NigeriaUniversity of Ilorin, NigeriaDepartment of Arabic and Islamic studies Lagos State University, Lagos NigeriaIslamic banking operates within a framework guided by Shariah principles, emphasizing fairness, equity, and social justice. Unlike conventional banking systems that rely on interest-based transactions, Islamic banking prohibits riba (interest) and promotes profit-and-loss sharing. However, income inequality remains a persistent challenge in many Muslim-majority countries, raising questions about how Islamic banking can contribute to sustainable income redistribution. This study employs primary data collected from 400 respondents across four countries where Islamic banking operates: Saudi Arabia, Malaysia, Indonesia, and Nigeria, with 100 participants sampled per country. Data were gathered using structured interviews and analyzed using qualitative and quantitative approaches, supported by a review of literature and case studies. The findings reveal that Islamic banking significantly contributes to wealth redistribution and economic justice through instruments such as zakat, waqf (endowments), and profit-sharing models. The research concludes that Islamic banking is not only a viable alternative to conventional systems but also an essential mechanism for achieving sustainable income redistribution. These findings have significant implications for policymakers, financial institutions, and communities seeking to address income inequality and foster a more equitable economic system.https://ejournal.upnvj.ac.id/JIEFeS/article/view/9194income redistributionislamic bankingribashariahwealth distribution |
| spellingShingle | Jamiu Adeniyi Yusuf Rauf Mumini Oladapo Ayuba Aderole Ismail Muhammed Azeem Tunde The Impact of Islamic Banking on Redistribution of Sustainable Income Journal of Islamic Economics and Finance Studies income redistribution islamic banking riba shariah wealth distribution |
| title | The Impact of Islamic Banking on Redistribution of Sustainable Income |
| title_full | The Impact of Islamic Banking on Redistribution of Sustainable Income |
| title_fullStr | The Impact of Islamic Banking on Redistribution of Sustainable Income |
| title_full_unstemmed | The Impact of Islamic Banking on Redistribution of Sustainable Income |
| title_short | The Impact of Islamic Banking on Redistribution of Sustainable Income |
| title_sort | impact of islamic banking on redistribution of sustainable income |
| topic | income redistribution islamic banking riba shariah wealth distribution |
| url | https://ejournal.upnvj.ac.id/JIEFeS/article/view/9194 |
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