An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam
International Journal of Finance and Banking Research
Volume 6, Issue 4, August 2020, Pages: 83-89
Received: Jun. 22, 2020; Accepted: Jul. 20, 2020; Published: Sep. 10, 2020
Views 66      Downloads 45
Mohammad Tanvir Islam, Capital Law Chamber, Dhaka, Bangladesh
Muhammad Shafiuddin, Centre for Higher Studies and Research, Bangladesh University of Professionals, Dhaka, Bangladesh
Article Tools
Follow on us
This Study shows the misconception of innocent Muslims on about “Are the service of conventional banking fully Haraam for the Muslim? This study is conducted the widespread misconception in innocent Muslim minds that everything associated with banking within the conventional system is prohibited in Islam. This probably stems from a lack of understanding and genuine desire of common Muslims to stay away from even remotely prohibitive income. Since this assumption of blanket prohibition is erroneous. In fact, there are clear guidelines in Islamic law and Islamic Sharia law [1]. This paper analyzes which services, functions and products have been Prohibited by Islamic law and Shariah and which services, functions and products have been allowed to be accepted subject to certain condition, There are many permissible (halal) functions that conventional banking institutions perform and make substantial profits from. In my view, Muslims may engage in such functions in the form of customers, employees, investors or advisers and if you have no direct involvement in any riba transaction, then it's fine to work there.
Halal & Non-Halal Product, Service and Faction, Qualitative Techniques
To cite this article
Mohammad Tanvir Islam, Muhammad Shafiuddin, An Analytical Study to Determine Whether All of the Services of Conventional Banking Permissible or Forbidden in Islam, International Journal of Finance and Banking Research. Vol. 6, No. 4, 2020, pp. 83-89. doi: 10.11648/j.ijfbr.20200604.14
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Durrani, D. M. (Feb 16, 2014). IS CONVENTIONAL BANKING ALL BAD?
Ahmad, F. (2020). Islamic Banks vs. Conventional Banks in Bangladesh: A Comparative Study Based on its Efficiency in Operation. International Journal of Islamic Banking and Finance Research, 29-37.
[3] (2020). Retrieved July 17, 2020, from
Saleh, M. A., Quazi, A., Keating, B. W., & Gaur, S. S. (2017). Quality and image of banking services: a comparative study of conventional and Islamic banks. International Journal of Bank Marketing, 35 (6), 878-902.
Ari Subagio, D. W. (2015). Consumer Decision Making in Conventional Banks and Islamic Bank based on Quality of Service Perception. Procedia - Social and Behavioral Sciences 211, 471-475.
Hanif, M. (2011). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Science, 166-175.
Md. Abdul Awwal Sarker. (n.d.). International Journal of Islamic Financial Services Vol. 1 No. 3.
Shafiq, A. (2019). A Review of Journals & Publishing Houses in the Field of Islamic Economics and Finance (Report No. 8). Istanbul: Research Center for Islamic Economics (IKAM).
ALI, L. (September 2013). Comparison of Islamic and Conventional Banking. International Review of Management and Business Research, 837-846.
page, I. B. (1983). Islami Bank Bangladesh Limitted. Retrieved July friday, 2020, from
Alshubaily, N. (2018). Understanding What is Forbidden (Haram) in Financial Structures. Dubai, UAE: islamicmarkets.
Wikipedia, the free encyclopedia. (n.d.). Retrieved July friday, 2020, from,_services_and_contracts#Principles:
Islam Question & Answer. (1997), from
Personal decisions of some Islamic Scholars Namely Mufti Mohammad Ullah.
Personal decisions of Some Supreme Court Advocate, who work as Legal Advisor of Islamic Bank Bangladesh.
Ministry of Finance (20092012) Activities of Banks and financial Institution. Government of People republic of Bangladesh, Retrieved.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186