5. Objective Functions of Islamic Bank Bangladesh: A Critique of Islamic Economics

Choudhury (1987).

Lozano (2002).

Hammond (1989), Harsanyi (1955).

Islamic Bank Bangladesh Limited (2019).

IDB (Saudi Arabia), Kuwait Finance House (Kuwait), Jordan Islamic Bank (Jordan), Islamic Investment & Exchange Corporation (Qatar), Bahrain Islamic Bank (Bahrain), Islamic Banking System International Holding (Luxembourg), Al-Rajhi Company for Currency Exchange & Commerce (Saudi Arabia), Dubai Islamic Bank (Dubai), Public Institution of Social Security (Kuwait), Ministry of Awqaf and Islamic Affairs (Kuwait), Ministry of Justice, Department of Minors Affairs (Kuwait).

Choudhury (1988).

Kaku (2015, p. 43) writes: “Consciousness is the process of creating a model of the world using multiple feedback loops in various parameters (e.g. in temperatures, space, time, and in relation to others), in order to accomplish a goal (e.g. find mates, food, shelter).” Kaku calls the above definition of phenomenological consciousness as the ‘space–time theory of consciousness’. In our book consciousness (phenomenology) will be referred to in terms of the spanning over knowledge, space, and time dimensions.

MacPherson (n.d.).

Cadbury (2000).

Transparency International (2018).

The shari’ah independently distributed model: (Religion) + (intellect) + (family) + (progeny) + (property). We note that there is no circularity of relations between the component parts in such a utilitarian additive expression. Shari’ah therefore does not invoke the highest watermark of protection of religion (monotheism) in going about calling upon any of the other components without relational linkages between them. Note thereby, that in calling upon the component of property right, IBBL emphasises its shareholding model rather than the ‘Business Model’ of stakeholders’ wellbeing. IBBL raised by shari’ah on financial matters emphasises product development by referring to it as shari’ah compliance. Yet the element of progenitor wellbeing is missed out by ignoring the meaning of intertemporal valuation of present decisions. Indeed, all of shari’ah-based ‘Islamic’ banking has become an exercise in product development. An example of such a case is upholding of Islamic insurance (takaful) without intertemporal pricing of premium. Another example is of waqf (endowment or perpetual charity) in educational institution without examining the relevance of such an institution for grassroots educational development but religious purpose (Azha, Baharuddin, Sayurno, & Salahuddin, 2013).

Contrarily, the Tawhidi worldview of monotheism reflected in organic unity of knowledge by inter-causal relations of wellbeing is W(x(θ), θ = f((Religion) × (intellect) × (family) × (progeny) × (property)), approximating to the quantitative evaluation of θ = θW(x(θ)). The evaluation complex system of interaction, integration, and evolutionary learning is explained by the non-linear forms of the inter-causal relations between the endogenous variables of the vector x(θ). The function ‘f’ explains families of extension of the five basic values as shown. A similar causal system model, but by method only and not the methodology of the Tawhidi genre of unity of knowledge, was given by Simon (1957).

Barquero (2007).

Qur’an (16:97): “Whoever works righteousness, whether male or female, while he (or she) is a true believer (of Islamic Monotheism) verily, to him We will give a good life (in this world with respect, contentment and lawful provision), and We shall pay them certainly a reward in proportion to the best of what they used to do (i.e. Paradise in the Hereafter).”.

Burstein (1991).

Choudhury (2018).

Yeager (1983).

Ghazanfar (1995).

Rodinson (2007).

Waltham (2010).

Lancaster (1966).

In the case of θ-induction in microeconomic sense, investment is disaggregate by projects, sectors, diversifications, and modes of financing. Besides, in terms of the inter-causality between various investment outlets (i, j), we denote such investment function by, I_ij(x_ij(θ), θ) = ∏_ijx_ij^aij(θ) ⋅ θ^bij ⋅ {x_ij(θ)}-vector comprises all morally/ethically embedded material choices in the presence of their interaction, integration, and evolutionary learning by linkages. This expression can next be written in the log-linear form with non-linearity caused by θ-induced coefficients, a_ij, b_ij, i, j + 1, 2, …, n. I_ij(x_ij(θ), θ) is a system of circular causation relations of the wellbeing function.

Sardar (1984).

Roy (2006).

Qur’an (45:18): Then We put you, [O Muhammad], on an ordained way concerning the matter [of religion]; so follow it and do not follow the inclinations of those who do not know.

Chittick (1989).