A Growing Level of Financial Engineering and Risk Management Research Paper

A Growing Level of Financial Engineering and risk of exposure Management - Research Paper ExampleThe renowned theory by Lon Fuller that is titled the inner morality of the Rule of Law clearly stipulates that a sound system will fail if laws presented at heart the system are obscure, and contradicting. Therefore, to ensure that Moslem banking maintains its unique nature it has been critical to devise a legal modeling that ensures efficient functioning of Islamic banking, which is in conformity with Islamic teachings. We can look into the key elements that are contained within a legal framework to support the efficient functioning of Islamic banking. Aldohni stated that under the Islamic banking act, Islamic banking business is described as a banking business whose operations and objectives only if 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 f unctioning of Islamic banking draw their origin to the Islamic religion. The most predominant element of the legal framework for Islamic banking is the prohibition 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 opposite 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 conventional system conventional banking legal and regulatory framework.