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Article
Extensive Use of Ḥilah in Islamic Banking and Finance
Islamic Quarterly (2015)
  • Muhammad Masum Billah, Dr., Sultan Qaboos University
Abstract

The current products of Islamic banks closely resemble direct loans and mortgages offered by conventional banks. Such resemblance makes one wonder whether Islamic banks are simply disguising interest-bearing loans. Such disguises are known as hi¯lah (legal stratagem) in Islamic law. This paper examines the use of hi¯lah by Islamic banks in their products and discusses the validity of hi¯lah under various schools of Islamic law.

Keywords
  • ḥīlah,
  • riba,
  • mudharaba,
  • murabaha,
  • ijarah
Publication Date
2015
Citation Information
Muhammad Masum Billah. "Extensive Use of Ḥilah in Islamic Banking and Finance" Islamic Quarterly Vol. 59 Iss. 1 (2015)
Available at: http://works.bepress.com/muhammad_masum_billah/5/