The Capital Guarantee Challenge in Islamic Banking; Jurisprudential Considerations, Root Finding and Solution

The allocation of resources in banks is sometimes done through partnership agreements, in which the bank, as the owner or partner of the investor, must take on the risks of economic activity. On the other hand, the bank faces the risk of default and delay in the return of facilities at the due dates, so in order to guarantee capital and peace of mind regarding the return of resources at the due dates, the contract provides the facility with the condition of operating guarantee. For reasons such as opposition to the requirements of the contract and opposition to the Shari'a, it is void. The present study, with a descriptive and analytical method, has explored the jurisprudential challenge of capital guarantee in the banking system and while examining the roots, has examined alternative solutions. According to the author, the current approach to securing capital in the banking system is facing a serious jurisprudential challenge, and efforts to overcome this jurisprudential dilemma have not been successful and in practice have not been effective and have not prevented the increase in non-current receivables. The root of the argument is the lack of accreditation and supervision in the process of providing facilities, which is in fact a kind of expertise in recognizing trust in partnership and trust contracts, and among the solutions, facility insurance at the expense of the bank is less challenging than other solutions.