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The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework

Purpose This paper aims to formulate a conceptual framework that will facilitate the actualization of maqāṣid al-Sharīʿah in product design and consumption within Islamic financial institutions (IFIs). Design/methodology/approach This paper relies on the classical and contemporary literature on...

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Main Author: Hasan, M.K.
Format: Article
Language:English
English
Published: Emerald 2021
Subjects:
Banking
Online Access:http://eprints.um.edu.my/26100/2/content/doi/10.1108/IMEFM-06-2020-0293/full/html
http://eprints.um.edu.my/26100/3/Monawer-2021-The-actualization-of-maqasid-al-sha.pdf
http://eprints.um.edu.my/26100/
https://www.emerald.com/insight/publication/issn/1753-8394
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spelling my.um.eprints.261002022-02-15T02:47:59Z http://eprints.um.edu.my/26100/ The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework Hasan, M.K. Banking Purpose This paper aims to formulate a conceptual framework that will facilitate the actualization of maqāṣid al-Sharīʿah in product design and consumption within Islamic financial institutions (IFIs). Design/methodology/approach This paper relies on the classical and contemporary literature on maqāṣid al-Sharīʿah and Islamic finance and adopts a qualitative content analysis method and an inductive approach to outline the constituent elements that formulate the framework. Findings This study determines six vital constituents of maqāṣid al-Sharīʿah, namely, parameters of maqāṣid, particular objectives, appropriate means, micro provisions, level of need and legal maxims to develop a conceptual framework of actualizing maqāṣid al-Sharīʿah in Islamic finance. The framework covers the following three stages: identification of maqāṣid, operationalization of maqāṣid in product design and consumption based on maqāṣid. Research limitations/implications This paper proposes a conceptual framework without investigating the practice of any particular industry or products. Further research would focus on formulating a practical framework based on a focus group discussion with industry experts, elaborating the parameters of maqāṣid, scrutinizing the maqāṣid available in the literature by the parameters of maqāṣid and assessing the IFIs’ products and services using the proposed framework. Practical implications This paper provides insights into the importance of maqāṣid elements and the effects of overlooking them on IFIs and customers’ product consumption. Furthermore, a major implication of the proposed framework is to learn how to use the maqāṣid approach as the baseline for designing new financial products. Originality/value The novelty of this paper lies in its pioneering attempt of harmonizing all essential maqāṣid elements and using them as constituents to formulate a comprehensive framework that actualizes maqāṣid al-Sharīʿah in the Islamic finance industry. Emerald 2021-12-21 Article PeerReviewed text en http://eprints.um.edu.my/26100/2/content/doi/10.1108/IMEFM-06-2020-0293/full/html text en http://eprints.um.edu.my/26100/3/Monawer-2021-The-actualization-of-maqasid-al-sha.pdf Hasan, M.K. (2021) The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework. International Journal of Islamic and Middle Eastern Finance and Management. ISSN 1753-8394, DOI https://doi.org/10.1108/IMEFM-06-2020-0293 <https://doi.org/10.1108/IMEFM-06-2020-0293>. https://www.emerald.com/insight/publication/issn/1753-8394 10.1108/IMEFM-06-2020-0293
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
language English
English
topic Banking
spellingShingle Banking
Hasan, M.K.
The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
description Purpose This paper aims to formulate a conceptual framework that will facilitate the actualization of maqāṣid al-Sharīʿah in product design and consumption within Islamic financial institutions (IFIs). Design/methodology/approach This paper relies on the classical and contemporary literature on maqāṣid al-Sharīʿah and Islamic finance and adopts a qualitative content analysis method and an inductive approach to outline the constituent elements that formulate the framework. Findings This study determines six vital constituents of maqāṣid al-Sharīʿah, namely, parameters of maqāṣid, particular objectives, appropriate means, micro provisions, level of need and legal maxims to develop a conceptual framework of actualizing maqāṣid al-Sharīʿah in Islamic finance. The framework covers the following three stages: identification of maqāṣid, operationalization of maqāṣid in product design and consumption based on maqāṣid. Research limitations/implications This paper proposes a conceptual framework without investigating the practice of any particular industry or products. Further research would focus on formulating a practical framework based on a focus group discussion with industry experts, elaborating the parameters of maqāṣid, scrutinizing the maqāṣid available in the literature by the parameters of maqāṣid and assessing the IFIs’ products and services using the proposed framework. Practical implications This paper provides insights into the importance of maqāṣid elements and the effects of overlooking them on IFIs and customers’ product consumption. Furthermore, a major implication of the proposed framework is to learn how to use the maqāṣid approach as the baseline for designing new financial products. Originality/value The novelty of this paper lies in its pioneering attempt of harmonizing all essential maqāṣid elements and using them as constituents to formulate a comprehensive framework that actualizes maqāṣid al-Sharīʿah in the Islamic finance industry.
format Article
author Hasan, M.K.
author_facet Hasan, M.K.
author_sort Hasan, M.K.
title The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
title_short The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
title_full The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
title_fullStr The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
title_full_unstemmed The actualization of maqāṣid al-Sharīʿah in Islamic finance: A conceptual framework
title_sort actualization of maqāṣid al-sharīʿah in islamic finance: a conceptual framework
publisher Emerald
publishDate 2021
url http://eprints.um.edu.my/26100/2/content/doi/10.1108/IMEFM-06-2020-0293/full/html
http://eprints.um.edu.my/26100/3/Monawer-2021-The-actualization-of-maqasid-al-sha.pdf
http://eprints.um.edu.my/26100/
https://www.emerald.com/insight/publication/issn/1753-8394
_version_ 1735409381080563712
score 13.211869

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