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Systematic Analysis of Jurisprudential Challenges of Money Creation in the Banking System
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Alireza Navvabpour1   , Mohammad Talebi2 , Hosein Hasanzadeh2 , Mohammad esmaeil Tavvasoli3 |
1- Ph.D. Student, Financial Engineering, Department of Financial Management, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran , alireza.navabpour@gmail.com
2- Assistant Professor, Department of Finance, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran
3- Assistant Professor, Department of Islamic Economics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran |
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Abstract: (13 Views) |
Accurate identification and in-depth understanding of the process of money and credit creation in the banking system, based on sound and realistic models and theories, constitute a fundamental prerequisite for issuing jurisprudential rulings on Islamic banking and for designing an Islamic banking system. In this regard, the present study aims to identify and analyze the jurisprudential challenges of money creation in the conventional banking system, with due consideration of the credit creation theory. By employing a systematic literature review, the study identified all relevant domestic and international scholarly works concerning the main research problem through precisely designed search protocols. At the initial stage, 806 articles were selected; following a rigorous PRISMA screening process, 152 articles remained that directly addressed the jurisprudential challenges of money creation. Among these, 49 articles explicitly adopted the credit creation theory, and the jurisprudential challenges were extracted from these sources. Analysis of the challenges presented in the selected literature ultimately led to the categorization of jurisprudential challenges of money creation into ten themes, including the conflict of the money creation process with jurisprudential rules such as the la darar principle (prohibition of harm), the uncertainty (gharar) inherent in money creation, the principle of equity and justice (social justice), the prohibition of usury (the usurious nature of money creation through debt without backing), the principle of sanctity of Muslim property (protection of property rights), among others. |
Article number: 4 |
| Keywords: Banking, Money creation, Credit creation theory, Islamic banking, Jurisprudential rules. |
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Full-Text [PDF 1171 kb]
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Article type: Research |
Subject:
Special
Received: 2025/06/18 | Accepted: 2025/09/9 | Published: 2026/01/30
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