Creation of Money and Islamic Banks
Dr. Asad Zaman
In ancient times, alchemists searched for the secrets of turning base metals into gold. In modern times, the fractional reserve banking system has turned the dreams of the alchemists into a reality. However, the secrets of credit creation by banks are kept hidden from the general public. For this reason, discussions and controversies about Islamic banking have not mentioned this crucial issue, even though rulings about the legitimacy or otherwise of financial transaction within Islamic law depend on it.