A Growing Level of Financial Engineering and Risk Management Research Paper

A Growing Level of Financial Engineering and Risk Management - Research Paper ExampleThe noteworthy theory by Lon Fuller that is titled the inner morality of the Rule of Law clearly stipulates that a legal system will fail if laws presented within the system are obscure, and contradicting. Therefore, to ensure that Muslim banking maintains its comical nature it has been critical to devise a legal mannequin that ensures efficient functioning of Muslim banking, which is in conformity with Islamic teachings. We can look into the key elements that are contained within a legal manakin to support the efficient functioning of Islamic banking. Aldohni stated that under the Islamic banking act, Islamic banking business is describe as a banking business whose operations and objectives only contain elements that have been approved by the Islamic religion and in particular, the Shariah laws (63-65). Therefore, the main elements within the legal framework for the efficient functioning of Isla mic banking draw their origin to the Islamic religion. The most predominant element of the legal framework for Islamic banking is the barricade of the issuance of interests on all forms of transactions within Islamic banks. This element within the legal framework ensures the efficient functioning of Islamic banking in a manner that conforms to Islamic teachings and it helps in differentiating Islamic banks from the separate commercial banks (Aldohni, 68-71). This differtiation would lead to figuring out to the public the equitability and avoidance of Ghara in Islamic banking as compared to received system conventional banking legal and regulatory framework.