IDEAS home Printed from
   My bibliography  Save this article

Central Banking in an Interest-Free Banking System المصارف المركزية في نظام مصرفي خال من الربا



    (Associate Professor of Economics Widener University, Chester, Pennsylvania)


    (Professor of Finance, Widener University, Chester, Pennsylvania 19013)


There is a vast literature on regulatory, monetary and institutional aspects of traditional banking system. This is not true for the interest-free Islamic banking framework. In this paper, the functions and tools of central banking in an Islamic framework are evaluated, and suggestions for adapting and revising the currently used tools of central banking for the Islamic central banking are made. It is shown that the current monetary policy tools of interest-based economies could be modified and used in an interest-free Islamic banking system. This paper shows that the needed technical and administrative modifications are to a large extent, minor. The existence of high speed computer technology and new accounting practices, it is argued, have increased the feasibility of a true interest-free Islamic banking. هناك أدبيات كثيرة جدا حول الجوانب التنظيمية والنقدية والمؤسسية للنظام المصرفي التقليدي ، الأمر الذي لا ينطبق على المصارف الإسلامية الخالية من الربا. ويحاول بحثنا هذا تقييم وظائف وأدوات المصارف المركزية في إطار إسلامي مع تقديم بعض الاقتراحات لتبني وتعديل هذه الأدوات لاستخدامها في المصارف المركزية الإسلامية . ويلاحظ أن أدوات السياسة النقدية المعاصرة للاقتصاد الربوي يمكن استخدامها في المصارف المركزية الإسلامية . وقد أثبتنا أن التعديلات الفنية والإدارية المطلوبة سوف تكون طفيفة إلى حد كبير . كما أكدنا على أن ظهور تقنية ( تكنولوجيا) الحاسبات السريعة والأعراف الجديدة في علم المحاسبة كل ذلك يسهل إمكانية قيام نظام مصرفي خال من الفائدة.

Suggested Citation

  • Hamid Zangeneh & Ahmad Salam, 1993. "Central Banking in an Interest-Free Banking System المصارف المركزية في نظام مصرفي خال من الربا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 5(1), pages 25-36, January.
  • Handle: RePEc:abd:kauiea:v:5:y:1993:i:1:no:2:p:25-36
    DOI: 10.4197/islec.5-1.2

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. repec:pje:journl:article1983wini is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:kauiea:v:5:y:1993:i:1:no:2:p:25-36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (King Abdulaziz University, Islamic Economics Institute.). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.