An-Najah University Journal for Research - B (Humanities)


Determining the function of the Islamic bank and the nature of its financial intermediation is one of the most important bases of Islamic banking thought. As it forms the two approaches in the view of the Islamic banking theorists, one of which is called the approach of the bank as a merchant and the second as the approach of the bank as an intermediary/broker. Consequently, there has been a difference in the extent to which bank ownership has been achieved, and the extent to which the financial benefit of the acquired returns has been achieved. The study analyzed the dimensions of the mediation and its implications from the point of view of the two approaches. The study worked on analyzing the economic effects resulting from the expansion of the selling mediation of the Islamic banks, the most important of which is: the fact that Islamic banks are supportive financial institutions, not competitors with other economic institutions, and it is within the framework of Merchant Broker, for the potential monopolistic institution. The study concluded that the ideal model for the nature and particularity of financial intermediation in Islamic banks is the model based on participation in the production factors, participation in the product, with the financial asset remaining in its owner's possession; a possession which reflects the idea of an organizing partner and a manager. This model allows the Islamic bank to act as a banking intermediary and not a trader. Therefore, the Business rules relating to acquisition and possession would differ in their concept and consequences.