The dynamics of savings associations (ROSCA) in the operation of good loan funds in Islamic banks

Abstract

The recent past years have witnessed an increasing interest among researchers in Islamic economics in financing with a good loan, especially with the increasing increase in interest rates in commercial banks and the increase in profitability in Islamic banks. Organizing this process, and also turning away from devising ways of financing with a good loan, and this is the basis of the problem of this research. The aim of this research is to identify the most important expected effects of applying the system of savings associations (ROSCA) in the operation of good loan funds in Islamic banks, and to suggest an idea for the work of this system within these funds, as it shows the importance and status of the good loan in Islamic law, and discusses the jurisprudential opinion that This system is opposed to considering the jurisprudential rule that says "any loan that brings a benefit is usury," and the research mentions the many benefits that Islamic banks and their customers benefit from if this system is applied within them. The importance of this research lies in the fact that it devises a method of financing in the form of a good loan in Islamic banks and gives a proposal to apply it in it, and it gives solutions to many people in finding suitable financing for their problems or for their economic projects. The researcher assumes that the system of savings associations (ROSCA) is suitable for working in good loan funds in Islamic banks, but rather that it is one of the necessities for the continuation and enrichment of Islamic banking work.