Ethical considerations in Islamic banking

Nowadays, banking industry is considered one of the most important parts of any economy. Islamic banking can synthesizes value and ethical considerations with economic structure. The main mission assigned to banks is adoption and deployment of optimized method of resource allocation and mobilization and also provision of financial services at various levels of the community tailored to the existing needs. Thus, on the basis of ethical considerations, for their financial activities, Islamic Banks utilize the procedures that are not only compatible with moral principles but also can significantly contribute to the strengthening of such principles. The main question in the current article is that: how the methods of mobilization and allocation of financial resources in Islamic banking theory are built upon ethical considerations? Accordingly, using a descriptive-analytic nature, the current paper seeks to analyze the hypothesis that “in Islamic banking, the methods of mobilization and allocation of financial resources are compatible with ethical considerations and principles. The research results indicate that, given the fact that Islamic banks financial activities are legitimized, financial procedures in Islamic banking theory (both in terms of objectives and performance) are not inconsistent with moral values on the one hand, and are compatible with moral values on the other hand. This is because the commitment to ethics can act as a suitable context for achieving the goals of the banking system in an Islamic society and interacting with customers.