غیرسودی بینکاری نظام کے پس منظراور ارتقاء کا تاریخی جائزہ A Historical Review of the Background and Evolution of the Interest-Free Banking System

Abstract

This study explores the historical background and evolution of the interest-free banking system, emphasizing its emergence as an ethical alternative to conventional banking. Rooted in Islamic principles, interest-free banking prohibits usury (riba) and promotes risk-sharing, justice, and mutual cooperation. This is important because a significant number of researchers believe that some banking-related activities in ancient civilizations bore certain resemblances to the economic practices prevalent in Islamic societies. Moreover, the level of interaction in the banking sector before and after the advent of Islam had surpassed what the Romans knew during their period of development. In some respects, Muslim societies were distinguished even from the European nations that followed (which some researchers consider the starting point of modern banking). Consequently, our efforts in this regard not only pave the way for a comparative study but also create the possibility of aligning the modern banking system with the true economic principles of Islam. This research paper aims to historically examine the economic activities of Islamic societies.