Maqasid Consideration In Financial Product Offerings Within The Framework of Banking Conversion

This paper discusses the role of Maqasid al-Shariah in guiding the conversion of conventional banks into Islamic banks, emphasizing that conversion is not merely structural but a full value-based transformation.

It outlines the need for comprehensive planning, including full compliance across deposits, financing, treasury, and investments. A key challenge is the treatment of pre-conversion assets and liabilities, which must be restructured into Shariah-compliant instruments while ensuring proper disposal of non-permissible income. Post-conversion, all banking operations must fully comply with Shariah principles by eliminating interest, uncertainty, and prohibited elements, while adopting Islamic contracts and asset-backed instruments such as sukuk.

The paper highlights that successful conversion depends on integrating Maqasid al-Shariah, ensuring that banking activities promote justice, transparency, wealth circulation, and real economic development aligned with the protection of religion, life, intellect, lineage, and wealth.