Regulated and Regimented Interest in the Financial and Economy System: Issues and Challenges

Hakimah Yaacob, Abdul Nasir bin Haji Abdul Rani

2017

Abstract

The imposition of interest began with standardization of banking principles issued by the Bank of International Settlement (BIS). The main purpose of this paper is to provide a comprehensive review on the origin of interest applied in the economic and financial system. The study employs library research consist of core principles of Basel, policies imposed by BIS and local legislation of five countries. Based on an extensive reviews, the paper claims that the origin of interest in the economy and financial systems began with standardisation. The central banking contributes to the importation of the standards into the local financial system. The author characterize responses to standardization as obligatory on local banks or financial systems that creates the blooming of interest regime. The paper offers a holistic overview and proffer alternative solutions for free interest in the economy and financial system. Further research of interest on the economic system resulted from banking with interest can be analysed from the quantitative measures. Addressing the contextual root of interest which is legally regulated will help the financial and economic system towards a free interest economy.

Paper Citation

in Harvard Style

Yaacob H. and Rani A. (2017). Regulated and Regimented Interest in the Financial and Economy System: Issues and Challenges.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 10-16. DOI: 10.5220/0007075900100016

in Bibtex Style

@conference{iciebp17,
author={Hakimah Yaacob and Abdul Nasir bin Haji Abdul Rani},
title={Regulated and Regimented Interest in the Financial and Economy System: Issues and Challenges},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={10-16},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007075900100016},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Regulated and Regimented Interest in the Financial and Economy System: Issues and Challenges
SN - 978-989-758-315-5
AU - Yaacob H.
AU - Rani A.
PY - 2017
SP - 10
EP - 16
DO - 10.5220/0007075900100016