A view on the rulings of Islamic banking in Libya

Abstract

The use of Islamic banking is an idea foreign to the Libyan popular system, and it is an experimental attempt to apply a legitimate goal, options in supervision and adapting the system to recognize the provisions of traditional Islamic Sharia, but this attempt does not miss studying the details of the traditional system on the one hand, and using alternatives to usurious transactions on the other hand.
The transition to an Islamic banking system cannot be achieved completely and directly without taking into account the specificities of the two systems (traditional and Islamic). The transition to a banking system that enshrines the provisions of Islamic banking is a noble goal, but we must take into account that this transition should not have dire consequences for the country’s economy and prove the unsuitability of the provisions of Islamic Sharia to regulate contemporary banking operations. Therefore, we should consider providing suitable alternatives for banking operations that ensure that the doors of usury and interest are not entered, and that achieve for banks the desired goal and the set objectives, embodied in financing and investment.