In Islamic banking, certain elements are strictly prohibited, aligning with the principles of Sharia law. These prohibitions are rooted in ethical and moral considerations, shaping the foundation of Islamic finance. Among the major prohibited elements are Riba, Gharar, Maysir and Qimar, Jahl, and Rishwah.
Firstly, Riba, which translates to interest or usury, is unequivocally forbidden in Islamic finance. This prohibition stems from the belief that money should not generate more money without participating in real economic activities. Instead, Islamic finance encourages profit-sharing arrangements and asset-backed transactions, ensuring ethical wealth accumulation.
Another significant prohibition is Gharar, referring to excessive uncertainty or ambiguity. This principle prohibits transactions involving undue risk or ambiguity, emphasizing transparency and fairness in all financial dealings. By avoiding transactions with uncertain outcomes, Islamic banking seeks to foster financial stability and trust within the system.
Furthermore, Islamic banking prohibits Maysir and Qimar, which pertain to games of chances and gambling. These activities are considered detrimental to individuals and society, promoting greed and unfair wealth distribution. By prohibiting such practices, Islamic finance aims to uphold social justice and promote responsible financial behavior.
In conclusion, Islamic banking adheres to strict prohibitions rooted in Islamic principles to ensure ethical conduct and financial stability. The major prohibited elements such as Riba, Gharar, Maysir and Qimar, Jahl, and Rishwah are integral to maintaining the integrity and values of Islamic finance.
(Response: The major prohibited elements in Islamic banking are Riba (interest or usury), Gharar (excessive uncertainty), Maysir and Qimar (games of chances and gambling), Jahl (ignorance), and Rishwah (corruption).)