Theorization Inadequacy and Its Effect on Islamic Banking

Abstract

Theorizing is a process which provides practical methods that

enable Islamic banks to perform their work, and a means which provides

solutions to the emerging problems. It is a process which controls the

risks facing the Islamic banking business. In addition, it is a means to

provide and create applicable methods and tools that are necessary

for the implementation of Islamic Banks’ processes in accordance with

Shariah regulations. Therefore, its inadequacy means that Islamic

banks will not be able to execute their jobs appropriately. This study

shows that necessary theorizing is absent in Islamic banking due to the

inappropriateness of Islamic banking tools, methods and products with its

nature. It also shows that theorizing in Islamic Banks is still incomplete

and needs more research to reach a complete theory that enables Islamic

Banks to perform and execute their jobs appropriately in accordance

with Shariah regulations. The researcher recommends preparing a well defined

approach for the preparation of human resources in Islamic banks

that qualify them to perform the Islamic banks processes