The Legal Framework of Islamic banks

Abstract

Islamic banks are among the basic and economic structures on which any country is based, because of the financing they provide for various types of investments and the multiple functions they perform in accordance with the provisions of Islamic Sharia. ahead of traditional banks. The Islamic Bank came to combine social, economic, financial and banking activities. Perhaps one of the most important features that distinguishes Islamic banks from each other is the degree of effort expended in each of them to investigate the halal profit that can be obtained through the investment process and to measure this profit in an accurate and clear manner and distribute it in a way that achieves the due justice. The need for Islamic banks arose as a result of the prosperity of economic and commercial activity in Iraq, which led to the expansion of Islamic banking activity and the emergence of Islamic banks alongside conventional banks. The Islamic bank is known by several definitions, linguistically and idiomatically, but the Islamic Banking Instructions in Iraq No. 6 of 2011 in force, amended, defined in Paragraph (1) of Article (1) the Islamic Bank as (any legal person who holds a permit or license under these instructions to carry out Islamic banking activities on the According to the provisions of Sharia and does not deal with interest, taking and giving. Where banks aim to satisfy an existing need or desire, and perhaps one of the most important needs that the Islamic bank spreads is the need of the Islamic community for the existence of an Islamic banking system that works in accordance with the provisions of Islamic Sharia, achieving development and investment goals that it faced through the collection and employment of funds. Therefore, it is necessary to encourage and turn to Islamic banks and to stay away from traditional banks, as Islamic banks have contributed as an important factor in getting the economy out of the current financial and economic crisis. We also recommend that the banking institution adopt the opening of a section or the creation of a special division to carry out the work of price fluctuations due to the tremendous development witnessed by the economy at the national and international levels, and it is necessary to expand activities based on banking commission without dealing with interest.