ISLAMIC FINANCE AND BANKING: CHALLENGE OF THE 21ST CENTURY: Islamic Banking and Finance, The Concept, the practice & the (keynote address)

In such an economy, banks are not mere finan- cial intermediaries but also play an active role in developing and maintaining a certain pattern of economy, serving certain socio-moral objectives as well. Of course, banks are not expected to act as charities, philanthropic organizations or mere “welfare institutions”, but the welfare, equity and stability dimensions are as relevant to the banking ethos in an Islamic scheme as are considerations of security efficiency, optimality and profitability. Definitely there would be trade-offs.