Open AccessThe civil law form of musharakah as an instrument for direct participation of the Islamic bank in capital: A retrospective analysis and modernity
Author(s) -
An. Kuznetsova,
AUTHOR_ID,
Инесе Тенберга,
AUTHOR_ID
Publication year - 2020
Publication title -
pravovedenie
Language(s) - English
Resource type - Journals
eISSN - 2658-6037
pISSN - 2658-3623
DOI - 10.21638/spbu25.2020.302
Subject(s) - islam , usury , civil society , capitalism , database transaction , competitor analysis , capital (architecture) , phenomenon , population , modernity , economics , law , market economy , political science , sociology , geography , physics , demography , management , archaeology , quantum mechanics , politics , computer science , programming language
Conventional banks, which operate under the conditions of interest capitalism, no longer dominate the financial sector. In the 21st century, Islamic banks, which provide services on an interest-free basis, have become their main competitors. In recent years, Islamic banking has grown rapidly even though 30–40 years ago it was only a regional phenomenon that could be found in countries with a predominantly Muslim population. The dispersal of capital by scaling a separate interest-free banking segment is now on the agenda of the Islamic world. It is stimulating the growing social demand for a fair distribution of resources within the community, as well as sustaining, at the same time, resilient economic development. However, the activity of Islamic banks remains a poorly studied and understood phenomenon within the circles of Russian legal science. In this article, the authors reveal the legal nature of the participation transaction involving shirkat al’-inan, while attempting to clarify the notion of using musharakah as a form of civil law, derived from shirkat al’-inan, within the Islamic banking system.