Role of Market Instruments towards the Development of Islamic Banking and Finance
Keywords:Islamic, financial, money, capital, instruments, market
Instruments like Muraabahah, Shares, Bonds, Mudhaarabah, Qard Hasan, Mushaarakah have played significant and extensive role in its Islamic economics and finance performance. Islam as a dynamic religion in which its principle and idea fits every aspect of life, being it old, modern and contemporary issues. This paper aimed at shedding more light to the role of aforementioned instruments and others and how they are traded in the Islamic typical financial market as short, intermediate and long term securities in adherence to the Islamic principles with their influence in developing the market like interbank market or others such as commercial banks, merchant banks and discount houses. The article further explores the concept and how Islamic money and capital market are operated. This research also attempts to provide certain guidelines to streamline the use of these financial instruments for prosperous economy within the ethics of Islam. Qualitative research methodology is adopted in this research. Textbooks, published journal on the Internet and other publications are also utilized and serve as secondary data in this work.